Matt Hands, Business Director, Insurance
Quebec is Canada’s second most populous province, after Ontario. As you might expect, the Quebec life insurance industry is also the second largest in the country, right behind Ontario. Below is a profile of Quebec life insurance. Just remember, the most important factor in your life insurance coverage is you, not your province. The best way to get yourself covered is to get multiple life insurance quotes and pick the plan that suits you best.
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Quebec life insurance is a subset of the larger health and life industry, which is a large part of Quebec’s economy. All data is from 2019.
- People with coverage: 7.5 million (national average: 2.9 million)
- Industry employees: 32,100 (national average: 15,740)
- Weekly benefits paid: $402 million (national average: $199.1 million)
- Provincial tax contributions: $1.9 billion (national average: $559.5 million)
Quebec has 80 active health and life insurance companies (including non-profit health benefit providers and fraternal benefit societies), compared to the national average of 67. While most Canadian health and life insurance companies are headquartered in Ontario, a respectable 15 of the total companies call Quebec home, thanks to the cultural differences between Quebec and the rest of Canada. As Canada’s second largest life insurance industry, Quebec has some big numbers when we drill down to life insurance specifically. All data is from 2019.
- People with life insurance: 6.5 million
- Average coverage per person: $158,000
- Average coverage per household: $352,000
- Average size of new policies: $304,000
- Overall coverage in force: ~$1 trillion (group and individual policies)
Here’s an interesting fact about life insurance in Quebec. Of all the provinces, Quebec has the largest percent of its population covered by life insurance. The provincial average is 59%, but a whopping 77% of Quebecois have life insurance!
While living in Quebec can make a small difference to your premiums, the biggest factor is you. Compare multiple quotes today to get the best rates.compare quotes today
Insurance premium tax is charged by provinces on all insurance premiums. They’re not normally seen by customers, as they’re paid by the life insurance companies directly. Regardless, a higher insurance premium tax generally means higher life insurance premiums. Quebec has the most complex regulations around insurance tax. Quebec life insurance premiums are taxed at a base rate of 3%, plus a 0.48% compensation tax. That results in an effective rate of 3.48%. Here are all of Quebec’s insurance premium tax rates:
In addition, Quebec charges retail tax on group life insurance policies, such as those paid by employers. This adds an additional 9% to group premiums. Even putting the additional cost of group premiums aside, Quebec’s base insurance premium tax rates are some of the highest in Canada. In Ontario life insurance premiums are taxed at just 2%, as are BC life insurance premiums. Quebec life insurance is also more expensive than Alberta, which taxes life insurance at 3%. Life insurance taxes are based on where you live, not the location of your life insurance company. More information on Quebec insurance taxes can be found on the province’s website.
Remember, where you live only has a small bearing on how much you'll pay for life insurance. Much more important are your personal circumstances, like your age, health, and smoking status, as well as your occupation and hobbies. What you pay can also vary based on the life insurance product you buy, and who you buy it from. Get started in minutes by comparing life insurance quotes from over 20 providers.
Ratehub.ca is not affiliated or otherwise associated with Hub International Canada.
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Matt started his professional career at CARPROOF where he honed his marketing and analytical skills for over 3 years. Matt then took his wealth of experience to Ratehub.ca’s Toronto offices, working with insurance providers, agents, and brokers to grow and expand the Insurance business unit. He is a thought leader in the community and a valuable insurance resource to respected publications like the Globe & Mail, Toronto Star, Huffington Post, Yahoo News, and 680 news radio in Toronto.read linkedin bio
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