PolicyMe vs PolicyAdvisor: Best Online Life Insurance In Canada

For Canadians looking to buy life insurance online, PolicyMe and PolicyAdvisor are two of top choices.

Both companies help Canadians get the financial protection their dependents and family members need should they pass away.

But how do they compare? Which one has the best life insurance offering in Canada? How do they work? Which of the two has the best rates?

In this PolicyMe vs PolicyAdvisor post, you’ll learn how both companies stack up against themselves to help you choose which one to go with.

What is PolicyMe?

PolicyMe is an online life insurance company that makes it possible for Canadians to buy term life insurance policies quickly, affordably and 100% online.

By eliminating the inefficiencies in the life insurance distribution and underwriting process, PolicyMe has been able to cut down on the time it takes to get protection for your loved ones and passed some of the savings to you in the form of competitive rates.

Some of the key features of PolicyMe include:

  • 100% online so no long calls to an insurance agent
  • Instant decision for most applicants
  • Quick application process (20 minutes)
  • Covers all causes of death except suicide in the first two years
  • Cancel without fees and penalties anytime
  • 30 days grace period for missed premium payments

If you’re not sure how much life insurance you need, PolicyMe has a life insurance coverage calculator that gives you a non-biased recommendation of your coverage amount in a few minutes.

The coverage amount is estimated based on your personal circumstances such as family situation, savings and investments, financial obligations and so on.

Check this PolicyMe Review to learn more about its offerings, how it works and the application process.

What is PolicyAdvisor?

PolicyAdvisor is a digital-first insurance brokerage that makes buying insurance policies simple, quick and intuitive manner.

It works with 20+ of the largest and most trusted insurance companies in Canada that includes Manulife, Canada Life, RBC Insurance, Desjardins, BMO Insurance, Empire Life, Wawanesa Life and many more.

Unlike PolicyMe, PolicyAdvisor offers more than just term life insurance policies.

The other products available include Whole life insurance, mortgage protection, disability insurance and so on.

Some of the features of PolicyAdvisor are:

  • Compare quotes from 20+ insurance companies
  • Simple and online application process
  • Non commission-based insurance brokers for unbiased advice
  • One-stop marketplace for several insurance needs

PolicyMe vs PolicyAdvisor

Next, we’ll look out how PolicyMe and PolicyAdvisor compare to each other in terms of how they work, available policy types, locations covered, life insurance quotes or rates and the ease of use.

How They Work

To put it simply, PolicyAdvisor is an online insurance brokerage or marketplace that helps you get the best insurance policy for your needs.

While PolicyMe is an online life insurance company that sells its own policies (issued by one of the largest life insurance companies in Canada).

If you’re hoping to compare the quotes from several insurance providers before buying, PolicyAdvisor is your best bet.

It lets you compare the insurance quotes from 20+ Canadian life insurance companies. But with PolicyMe, you’re only presented with its own quote.

Winner: PolicyAdvisor

Policy Types

PolicyMe only sells term life policies, a very specific type of life insurance. But you have more choice with PolicyAdvisor.

With PolicyAdvisor, you can get several other insurance coverages such as term life, whole life, mortgage protection, disability insurance, critical illness, No medical insurance and even Children’s insurance.

While a term life insurance policy would meet the needs of most people, it would still be nice to have other options.

So in terms of the policy types on offer, PolicyAdvisor is a clear winner.

Winner: PolicyAdvisor

Rates

When comparing different life insurance policies, you should go with the one with the affordable rates assuming they have the same coverage amount and policy terms.

I used the life insurance quote tool from PolicyAdvisor and PolicyMe to get the monthly rate for a 33-year-old male, non-smoker and $500,000 coverage.

The results are shown below…

Here’s the quote from PolicyAdvisor:

PolicyMe vs PolicyAdvisor comparison with PolicyAdvisor life insurance quotes shown

And here’s the one from PolicyMe:

PolicyMe rates and quotes for life insurance

The difference between the PolicyMe quoted rates and PolicyAdvisor’s isn’t much on a monthly basis. But it adds up to over $320 in the 20 years covered by the policy.

The results are similar if you change some of the variables like coverage amount, smoking status and gender. i.e. you save some money with PolicyMe.

Generally, you can expect to pay a little lower for your life insurance with PolicyMe. The savings will depend on your personal situation (age, smoking status etc).

But according to PolicyMe, most people would get savings of between 10-20 percent on their quotes compared to other life insurance companies.

Winner: PolicyMe

Ease of Use

Both PolicyMe and PolicyAdvisor let you start your search for life insurance from the comfort of your home.

With PolicyMe, you calculate how much life insurance you need and complete an application in less than 20 minutes.

As mentioned earlier, most people’s applications are approved on the spot with no need for an intrusive medical check.

Where medical checks are needed, it’ll be scheduled quickly and the whole process completed faster than the average competitor.

PolicyAdvisor also lets you start the application online. And they’ve done a good job of guiding you through the process with their non-commission based, licensed insurance brokers available to help if needed.

However, the application is sent to the insurance company you choose for approval. So you can’t get an instant approval like it’s possible with PolicyMe.

Winner: PolicyMe

Provinces Covered

Unfortunately, both PolicyMe and PolicyAdvisor don’t operate in all Canadian provinces and territories.

For now, PolicyAdvisor is only licensed to sell life insurance in Alberta, Manitoba and Ontario.

On the other hand, PolicyMe operates in Alberta, British Columbia, Saskatchewan, Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island, Yukon Territories, Northwest Territories & Nunavut.

That’s all provinces and territories except Quebec and Newfoundland & Labrador.

If you’re in either provinces, you’re out of luck.

So with PolicyAdvisor available in only 3 locations versus PolicyMe with 11, PolicyMe takes the lead.

Winner: PolicyMe

PolicyMe vs PolicyAdvisor: Summary

If you’re looking to buy term life insurance in Canada, which one should you choose between PolicyMe and PolicyAdvisor?

For the most affordable life insurance rates in Canada, you should start your search with PolicyMe. In most instances, the rates you’re quoted would be cheaper than the ones available at other life insurance companies.

But before you commit, you should shop around to be sure you’re getting the best deal. And that’s where PolicyAdvisor comes in.

In a few minutes, you’ll get access to quotes from several of the top and largest life insurance providers in Canada.

Compare the rates to the ones at PolicyMe, then decide on the best life insurance policy for you

Final Verdict: PolicyMe vs PolicyAdvisor

Overall, you can’t go wrong with either PolicyMe or PolicyAdvisor. Both companies make it easy and convenient to start protecting your loved ones through life insurance.

However, their business models are quite different.

While PolicyMe is focused on only life insurance and only sells its own policies, PolicyAdvisor offers more products and lets Canadians compare policies from several companies.

Bottomline: Get quotes from both companies, compare the options, and choose the one that best meets your needs.

Simon is a CPA by day and a Personal Finance Blogger by night. With over a decade experience in financial services, he's passionate about personal finance, investing and helping people take control of their financial life.

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