Insurers are adding health and genetic testing, fitness tracking and even grief counselling services to make policies more valuable during a client’s lifetime.Lesia_G/iStockPhoto / Getty Images
Canadian life insurers are adding a host of ancillary services that can be used during a policyholder’s lifetime to make their products feel more useful and relevant to clients.
“Typically, people think about the promise we give to clients at the very end,” says Hilda Tang, senior vice-president of insurance solutions at Sun Life Financial Inc. “We can add a lot more value for clients, and support them during their lifetime.”
The new offerings, which range from medical screening to health rewards to grief counselling, come as insurers try to appeal to younger consumers.
Forty-two per cent of Canadians don’t have life insurance or are unsure if they do, according to a 2025 report from PolicyMe Corp., based on a survey of about 1,500 people.
Furthermore, two-thirds of uninsured Canadians said they weren’t likely to purchase life insurance in the next five years, including half of the survey participants who were parents.
Paul Savage, head of individual insurance, Canada, at Manulife Financial Corp., notes that younger people are more likely to be uninsured or underinsured.
Although affordability is one factor, a “big piece of it is the relevance of life insurance as a category,” he says. The typical triggers to purchase life insurance – getting married, having kids or buying a home – are happening later in life, or not at all.
He adds that while people are used to life insurance being a monthly payment toward a benefit that they, personally, will never see, they want more than that.
“[We’re] looking for ways to make it more relevant and have more connection and engagement with the customer so they get some value out of their life insurance while they’re still alive, in addition to that financial protection,” he says.
Manulife uses its Vitality platform to give clients a mix of reward opportunities to encourage healthy behaviour and access to preventative health services.
Going to the doctor or dentist, getting a flu shot, taking a certain number of steps a day, or getting other physical activity all give clients points toward rewards such as cheaper trips through Expedia or reducing the cost of a wearable such as an Apple Watch or Fitbit.
In November, Manulife expanded its preventative health services to include Cronometer, a nutrition app; NiaHealth, which provides advanced biomarker testing to identify hidden disease risks; and Personalized Prescribing Inc.’s pharmacogenetic testing.
It also became the first Canadian insurer to provide access to GRAIL’s Galleri multi-cancer early detection test. Policyholders who use the service get tested for more than 50 types of cancer and receive pre-test counselling, a results review and co-ordination on any necessary next steps.
Purchasing a life insurance policy with Vitality gives clients the opportunity to save up to 15 per cent on their premium costs, depending on how frequently they engage with the platform.
Mr. Savage said Vitality policyholders are highly engaged with their policy, using the platform 22 times a month, while customers with traditional insurance engage once a month with their policy, on average. Vitality has also helped users improve their health, including their cholesterol, blood pressure, glucose levels and body mass index – something he points out benefits both parties.
“Canadians want to live longer, healthier, better lives,” he says. “If we can take steps to help them, instead of passing away at 70, they pass away at 80 or 90. It delays when we pay the claim, and that’s a benefit to us. That benefit is why we can pay for these tests, these preventative [services], and invest in keeping our customers healthy.”
Pierre Ghorbanian, vice-president of advanced markets and business development at BMO Insurance, says ancillary health-promotion services can also help insurers price their products.
“We’re better at pricing products because people are not dying as early as expected, so that helps with mortality pricing down the line. Everyone’s a net winner because the price of insurance ultimately comes down,” he says.
Mr. Ghorbanian points to the BMO Insurance HealthAdvocate Plan for life and critical illness insurance policyholders. That includes a service that helps clients navigate the health care system and local programs and services, such as home care and elder care. It also offers a medical second opinion service and assistance in finding a specialist, including in another country. The services are offered through a partnership with Teladoc Health Canada.
Sun Life has also rolled out health support services as part of its life and critical illness policies, Ms. Tang says. The insurer has a respiratory care program that gives plan members with asthma or other respiratory health issues the ability to consult an expert, develop a care plan and receive ongoing support and guidance. It also has a medical second opinion service available to critical illness policyholders.
In 2024, Sun Life rolled out a term life insurance policy specifically for Canadians with diabetes, who have traditionally encountered higher premium costs and decline rates. Clients with that policy have access to a diabetes care program, which gives them one-on-one coaching, personalized care plans and advice on medication and nutrition.
Ms. Tang says 76 per cent of people who’ve used the program saw an improvement in their blood sugar levels, and 40 per cent were able to reduce their use of medication. She notes that helping people get their condition under control can make a positive difference to their financial picture, too.
“What we’ve seen in our research is [people with diabetes] have higher living expenses, whether it’s additional medication, equipment or even the groceries they need to buy to maintain a healthy lifestyle,” she says.
Companies are also looking at services beyond health support. For example, Manulife’s Vitality program includes the KixCare pediatric virtual care platform.
In January, BMO Insurance introduced a partnership with Empathy, which provides bereavement support and grief resources to the beneficiaries of insurance policyholders. They can also use the service for assistance with settling their loved one’s estate, funeral planning and other administrative tasks.