Whole life vs. RRSP vs. TFSA: Which builds more wealth in Canada?

When it comes to building wealth in Canada, how you save is just as important as how much you save. Whole life insurance, Registered Retirement Savings Plan (RRSP), and Tax-Free Savings Account (TFSA) each offer unique advantages depending on your income, tax bracket, and long-term goals. Understanding how they work together, or separately, can help you create a more efficient, tax-optimized financial strategy.

For most Canadians, maximizing RRSP and TFSA contributions provides the strongest foundation for long-term wealth. However, for high-income earners who’ve already maxed out these registered accounts, whole life insurance can become a powerful third pillar that offers permanent protection, tax-deferred cash value growth, and a tax-free death benefit.

What are RRSPs, TFSAs, and whole life insurance used for?

Each wealth-building tool plays a distinct role in a Canadian financial plan. Understanding the primary purpose of an RRSP, TFSA, and whole life insurance policy helps clarify why their long-term outcomes vary and how they fit into different stages of income, tax exposure, and estate planning.

RRSP: A tax-deferred retirement account that lowers taxable income today while growing investments for future withdrawals
TFSA: A flexible investment account that delivers tax-free growth and tax-free access at any time
Whole life insurance: A permanent life insurance policy that provides lifelong coverage and builds stable, tax-advantaged cash value

Now, the value created by each tool is driven by its taxability, contribution structure, withdrawal rules, and investment framework. RRSPs create value by giving you a tax break when you contribute and letting your investments grow until retirement, when you’ll typically withdraw at a lower tax rate.

TFSAs create value by allowing all future investment growth to remain tax-free and giving you full flexibility to withdraw funds whenever you need them. Lastly, whole life insurance creates value through guaranteed lifetime coverage, steady long-term cash value growth, participating dividends, and tax-efficient access to that cash.

Since each tool is built differently, they naturally lead to different long-term results in growth potential, liquidity, and estate value.

Age (in years)

Gender

Smoker

Yes

Monthly Contribution Budget

How do RRSPs, TFSAs, and whole life insurance work over a lifetime?

RRSPs, TFSAs, and whole life insurance each grow differently, are accessed differently in retirement, and create very different results at death.

Accumulation: RRSPs and TFSAs grow based on how much you contribute and how well your investments perform. Whole life insurance grows more steadily, using guaranteed cash value and annual dividends from the insurer, however, dividends are not guaranteed and may fluctuate
Decumulation: RRSPs must eventually be converted to a RRIF, and all withdrawals are taxed. TFSAs stay tax-free forever with no restrictions on when or how you take money out. Whole life policies let you access cash through loans or withdrawals, often with very favourable tax treatment

Estate impact: RRSPs are taxed at death unless they transfer to a spouse. TFSA passes tax-free if the spouse is the successor; other beneficiaries pay tax on post-death growth. Whole life policies pay a tax-free death benefit and add predictability and stability to estate plans

Whole life insurance vs. RRSP v.s TFSA

Feature	Whole life insurance	RRSP	TFSA
Primary purpose	Lifetime insurance protection with tax-advantaged cash value growth	Tax-deferred retirement savings	Tax-free savings and investment growth
Tax treatment on contributions	No tax deduction; premiums paid with after-tax dollars	Contributions reduce taxable income	No tax deduction; contributions made with after-tax dollars
Tax treatment on growth	Cash value grows tax-deferred	Investment growth is tax-deferred	All growth is tax-free
Tax treatment on withdrawals	Policy loans/withdrawals may trigger tax unless managed properly; death benefit is tax-free	Withdrawals are fully taxable as income	Withdrawals are completely tax-free
Contribution limits	No legislated limit; based on policy design and underwriting approval	18% of previous year’s earned income, capped at $32,490 for 2025	Annual limit of $7,000 for 2025; lifetime room $102,000 (as of 2025)
Access to funds	Access through policy loans/withdrawals; may affect death benefit	Flexible withdrawals in retirement, but taxable; early withdrawals may trigger withholding tax	Withdraw anytime without tax; withdrawn amounts are added back to next year’s room
Risk level	Low-to-moderate; insurer manages investments	Varies by underlying investments	Varies by underlying investments
Ideal for	High-income earners, incorporated professionals, estate planning, tax diversification	Canadians focused on retirement savings and tax deferral	Short- and long-term savings, flexible goals, tax-free growth

How RRSPs, TFSAs, and whole life insurance grow wealth differently

RRSPs and TFSAs grow based on the investments you choose, such as stocks, bonds, ETFs, or mutual funds. In an RRSP, growth is tax-deferred, which helps compounding over time, while in a TFSA, all growth and gains stay completely tax-free, giving it a long-term advantage over taxable accounts. RRSPs/TFSAs typically outperform whole life on returns but lack its guarantees/estate value.

Whole life insurance grows in a different, more steady way: the policy builds guaranteed cash value every year and receives participating dividends from the insurer’s long-term portfolio. The returns are typically modest but very stable, making whole life a low-volatility complement to market-based investments.

How tax-efficient are RRSPs, TFSAs, and whole life insurance?

RRSPs, TFSAs, and whole life insurance offer different tax advantages depending on how you contribute, how the funds grow, and how you access them later.

RRSP: Contributions reduce your taxable income immediately, and growth is tax-deferred. All withdrawals, including mandatory RRIF withdrawals are fully taxable as income, and early withdrawals face a withholding tax of 10% (up to $5,000), 20% ($5,001–$15,000), and 30% (over $15,000) outside Quebec; for Quebec, the withholding tax is 5% federal and 15% provincial
TFSA: There is no upfront deduction, but all investment growth and withdrawals are completely tax-free. There are no withdrawal deadlines or age-based conversion rules, making it advantageous if you expect to be in a higher tax bracket later
Whole life insurance: Cash value grows tax-deferred, and you can access funds through policy loans that are generally tax-free. Only withdrawals above your adjusted cost basis are taxable, making whole life useful for long-term tax-efficient income and estate planning

Risk and control differences across RRSPs, TFSAs, and whole life

How much risk you take on, and how much control you have over your money, varies with each option. Whole life insurance gives you no investment control because the insurer manages everything for you. This keeps risk low and makes it a good fit for people who want steady, predictable growth and long-term estate security.

RRSPs and TFSAs work very differently: you choose the investments, so your results depend on the markets. This means the risk can be low or high depending on what you pick, making these accounts better for people who want more growth potential and are comfortable handling market ups and downs.

Risk and control comparison: Whole Life, RRSP, and TFSA

Account	Investment control	Risk profile	Who it suits best
Whole life	None (managed by insurer)	Low	Conservative savers, estate-focused plans
RRSP	Full control	Low–High	Long-term investors, higher-income earners
TFSA	Full control	Low–High	All income levels, flexible savers

RRSPs and TFSAs suit people who want hands-on investing and the chance for higher returns, while whole life insurance suits those who prefer stability, guarantees, and minimal volatility.

When should you surrender your whole life policy?

You should consider surrendering your whole life insurance policy only when keeping it no longer fits your financial needs or goals.

While surrendering should be your last resort, it can make sense in the following cases:

You no longer need the coverage (no dependents, sufficient assets elsewhere)
You can’t afford the premiums, and other options don’t work for you
You want to reallocate funds to other priorities or investments after comparing net outcomes
You need immediate cash to repay a debt or major expenses
Your cash value has grown enough that accessing it supports your financial goals

A whole life Insurance policy is a long-term valuable asset. Surrendering ends protection and may reduce value due to fees, loans, and taxes.

What happens when you withdraw money out of an RRSP, TFSA, or whole life

Each wealth-building tool follows different withdrawal rules in retirement. These rules directly influence tax efficiency, flexibility, and how much income you can draw without reducing government benefits such as OAS.

RRSP/RRIF: RRSPs must be converted to a RRIF or annuity by age 71, after which mandatory minimum withdrawals begin every year. All withdrawals are fully taxable as income, which can push retirees into higher tax brackets and may reduce or claw back Old Age Security (OAS) and affect income-tested benefits like the Guaranteed Income Supplement (GIS)
TFSA: There are no mandatory withdrawal rules at any age. All withdrawals are completely tax-free and do not affect OAS, CPP, GIS, or any federal income-tested benefits. This makes the TFSA one of the most flexible tools for retirement income planning, especially for managing taxable income levels
Whole life insurance: Whole life policies have no withdrawal age restrictions, and policyholders can access cash value through policy loans, which are not counted as taxable income. This makes whole life an effective tool for preserving OAS eligibility and managing income-tested benefits in retirement. Withdrawals above the adjusted cost basis (ACB) are taxable, but loans generally provide the most tax-efficient access

What happens to RRSPs, TFSAs, and whole life insurance at death?

Tax efficiency at death is one of the most important, and most misunderstood differences between registered plans and whole life insurance. How each account is treated at death can significantly change the net amount your beneficiaries receive.

Whole life insurance: The death benefit is 100% tax-free and paid outside the estate, which means it bypasses probate in every province except Quebec, where proceeds may be part of the estate unless a preferred beneficiary is named. In Ontario, Ontario Estate Administration Tax is $15 per $1,000 above $50,000; while the first $50,000 is exempt. So, on $500,000, the probate fee is $6,750. The payment also avoids delays, creditor claims (in most cases), and estate administration complications
RRSP/RRIF: Even if you name a beneficiary and avoid probate, the full RRSP or RRIF balance is treated as income in the year of death unless transferred to a spouse or financially dependent child. For many Canadians, this pushes the estate into a higher tax bracket, creating a final tax bill of 40–50%
TFSA: TFSAs can bypass probate when a beneficiary is named. The account balance is not taxable at death, but there is no tax reduction benefit beyond this, unlike whole life insurance, which creates new tax-free capital at death

For example, a $400,000 RRSP may trigger up to $200,000 in final taxes, depending on the marginal tax rate at death. A $400,000 whole life insurance policy pays $400,000 tax-free directly to beneficiaries with zero probate fees.

How much do RRSPs, TFSAs and whole life plans usually earn?

Understanding real-world returns helps you compare how each tool grows over time and how much volatility you might experience. While whole life insurance provides smoothed, stable performance through insurer-managed assets, RRSPs and TFSAs depend entirely on market-based investments, making their long-term averages higher but less predictable.

Whole life insurance: Participating whole life policies in Canada have historically credited dividend scale interest rates in the 5%–6% range across major insurers. These rates reflect the long-term performance of the participating account but do not directly equal cash value growth. Volatility is low because returns are smoothed.

Source:

Canada Life Assurance Company. Historical Dividend Scale Interest Rate Performance for Policies Formerly Belonging to the Canada Life Open Participating Account. Toronto: Canada Life, 2024

RRSP: RRSP returns depend entirely on the investments selected. As a proxy, the S&P/TSX Composite Index, often held within RRSP portfolios, has delivered a long-term average annualized return of ~7–8% over multi-decade periods, with moderate to high volatility.

Source:

Questrade. “What Is the Average Rate of Return of the Stock Market?” Questrade Learning Centre, 2025

TFSA: Like RRSPs, TFSA returns depend on the chosen investments. Canadian calculators and financial institutions commonly model 5–8% average annual returns for long-term equity or balanced portfolios inside a TFSA, with all growth and withdrawals tax-free.

Source:

Mackenzie Investments. TFSA vs. Taxable Investment Calculator

Comparison of real-world return potential

Account Type	Typical Annual Return*	Volatility	Key Advantage
Whole life insurance	~5%–6% (dividend scale rates)	Low (smoothed returns)	Stable, guaranteed value, tax-advantaged growth
RRSP	~5%–8% (market-dependent)	Medium–high	Tax-deductible contributions, tax-deferred growth
TFSA	~5%–8% (market-dependent)	Medium–high	Completely tax-free growth and withdrawals

*These figures are illustrative averages based on publicly available Canadian data; actual results vary by policy design, investment mix, time horizon, and market conditions.

How to choose between RRSP, TFSA, and whole life based on personal circumstances?

The most effective savings tool depends on a person’s tax bracket, income stability, liquidity needs, and long-term goals. While each tool provides a different type of value, specific situations make one option more suitable than the others.

The sections below outline how different financial circumstances influence whether an RRSP, TFSA, or whole life policy should be prioritized

Comparing RRSP, TFSA, and whole life across common financial scenarios

Personal circumstance	RRSP suitability	TFSA suitability	Whole life suitability	Best overall fit
Low-income earners/families	Limited benefit because contributions generate small refunds and later withdrawals may trigger higher tax	Strong fit because growth and withdrawals are tax-free and flexible	Offers guaranteed protection and early cash value foundations, useful for long-term planning even when income is modest	TFSA first; add RRSP and whole life as income grows
High-income earners	Excellent fit due to high-value tax deductions and lower expected tax in retirement	Should be maximized alongside RRSP for long-term tax-free growth	Strong fit for surplus cash, long-term tax efficiency, and stable estate value	Max RRSP + TFSA; whole life as a core third tax-sheltered asset
Students/Early-career earners	Refunds are small unless income is already high or LLP is planned	Best early-stage tool due to flexibility and tax-free withdrawals	Locks in low lifetime premiums and builds early guaranteed value	TFSA first; consider whole life for long-horizon asset building
Saving for a home down payment	Useful through the Home Buyers’ Plan when contributions were made in a higher bracket	Ideal for flexible, penalty-free withdrawals without repayment	Supports long-term financial security and future estate value after the home purchase	Under $50k income: TFSA; higher income: RRSP via HBP; whole life for long-term planning
Preparing for retirement	Core tool when withdrawals will occur in a lower tax bracket	Helps manage retirement income and avoid OAS/GIS clawbacks	Enhances retirement planning through tax-efficient access, stable growth, and estate value	RRSP + TFSA; whole life for income smoothing and legacy
Already contributing to a pension	Withdrawals increase taxable income and can reduce OAS/GIS	Best tool because withdrawals do not affect income-tested benefits	Adds guaranteed values that complement defined benefit or defined contribution pensions	TFSA supported by whole life for long-term stability
Continuing education	Useful for high earners using the Lifelong Learning Plan; must repay over 10 years	Best for education costs due to no tax and no repayment	Strengthens long-term financial resilience while other assets support education	TFSA for education; maintain whole life as long-term protection
Moving TFSA savings to an RRSP	Efficient once in a higher tax bracket; must monitor contribution room	Acts as the staging area for tax-free withdrawals before moving funds	Provides long-term diversification and tax-efficient value beyond RRSP/TFSA limits	Build TFSA early → shift to RRSP later → complement with whole life

How RRSPs, TFSAs, and whole life insurance complement each other

When used together, these three tools create a well-rounded financial strategy. The RRSP provides structured, tax-deferred savings that form the backbone of retirement income. The TFSA adds flexibility by offering tax-free cash flow you can access at any time without affecting government benefits.

Whole life insurance contributes stable, low-volatility growth and a guaranteed death benefit that strengthens estate plans. Combined, they deliver tax diversification, predictable long-term outcomes, and a more resilient retirement strategy.

Frequently asked questions

Is whole life insurance better than investing in RRSPs or TFSAs?

No single option is “better” for everyone. RRSPs and TFSAs outperform whole life for pure investment returns, but whole life adds tax-free insurance benefits, stable growth, and estate value that registered accounts cannot replicate.

Why do high-income Canadians use all three accounts?

Once RRSP and TFSA limits are maxed, whole life insurance becomes an additional tax-sheltered asset class with no legislated cap. It provides diversification, lifetime coverage, and tax-efficient access to cash value.

Can whole life insurance outperform market investments?

Not typically. Whole life returns are lower (stable ~5–6% participating account performance), but they are guaranteed, smoothed, and include a tax-free death benefit, providing value beyond investment returns.

Is it true that RRSPs are taxed heavily at death?

Yes. When the RRSP passes to anyone other than a spouse or dependent child, the full account value is taxed as income in the year of death, often creating a 40–50% final tax bill.

Can a TFSA ever be taxed?

Growth inside a TFSA is never taxed, and withdrawals are always tax-free. However, investment gains earned after death become taxable in the beneficiary’s hands unless the spouse is a successor holder.

When should someone consider adding whole life insurance?

Typically when income is stable, dependents rely on you, or when you consistently max out RRSP/TFSA limits and want to diversify into a tax-efficient, permanent asset for retirement and estate planning.

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Canada Life whole life insurance review (2026)

Canada Life’s participating life insurance policies maintain a dividend scale interest rate of 5.75%, unchanged from the previous two years. Additionally, Canada Life has consistently paid dividends for over 170 years, and its participating account has never missed a distribution year. This is a remarkable record that reflects the insurer’s financial resilience and reliability across economic cycles.

In this review, we explore Canada Life’s whole life insurance offerings, that provide lifelong protection, guaranteed cash value accumulation, and long-term dividend potential.

Best for charitable giving

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Estate Select
Wealth Select
My Par Gift

Average term life cost

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

A+

Dividend Scale Interest Rate (DSIR)

5.75%

PolicyAdvisor rating

Canada Life whole life insurance earns a 4 out of 5 rating from PolicyAdvisor. It is a leading choice for Canadians who want to use whole life insurance to support charitable giving. Its My Par Gift plan is specifically designed for charitable contributions, with a single premium and cash value starting from year one. It is also known for its long history of dividend payments, a large and financially strong participating account, and disciplined long-term financial management.

Canada Life’s participating plans share in company earnings through annual, non-guaranteed dividends. Dividends depend on participating account investment returns, insurance claims, expenses, taxes, lapses, policyholder behaviour, and surplus management. Each year, Canada Life’s Board of Directors reviews and approves the dividend scale for the following policy year.

Canada Life participating account financials:

Participating account size: $59.2 billion in total assets
Policies in force: 1.4 million participating life insurance policies
Participating account surplus: $3.06 billion
Dividend history: Dividends paid to participating policyowners since 1848
Participating account structure: Canada Life operates the largest combined open participating account in Canada
Dividend drivers: investment experience, mortality experience, expenses, taxes, lapses, withdrawals, and policy terminations

Canada Life’s long dividend history and sizable participating account support stable long-term performance. However, like all insurers, dividends are not guaranteed and can increase or decrease depending on annual experience.

Age (in years)

Gender

Smoker

Yes

Monthly Contribution Budget

Canada Life offers two participating whole life options

Estate Select: A traditional participating whole life policy focused on long-term guarantees and stable estate protection
Wealth Select: A participating whole life policy designed for higher early cash value growth, long-term accumulation, and estate enhancement potential

Both plans provide lifetime coverage with guaranteed base values and the opportunity to enhance policy value through dividends.

Source: Canada Life Financial Facts 2024

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Canada Life whole life insurance costs and value

This example shows the projected premiums, cash value growth, and death benefit for a 30-year-old non-smoker female purchasing $100,000 of Canada Life whole life coverage with life pay and enhanced paid-up additions.

Projected premiums, cash value, and death benefit over time

Policy Year	Age	Annual premium paid	Total premiums paid	Total cash value	Death benefit
0	30	$800.00	$800.00	$0	$100,000.00
10	40	$800.00	$8,000.00	$1,745	$100,000.00
20	50	$800.00	$16,000.00	$13,419.00	$100,000.00
30	60	$800.00	$24,000.00	$36,739.00	$100,000.00
40	70	$800.00	$32,000.00	$68,267.00	$121,507.00
50	80	$800.00	$40,000.00	$118,346.00	$164,409.00
55	85	$800.00	$44,000.00	$151,779.00	$192,112.00
60	90	$800.00	$48,000.00	$190,882.00	$224,144.00

* Values shown are non-guaranteed illustrations based on current assumptions and the insurer’s dividend scale. Actual premiums, cash values, and death benefits may vary. This example is for informational purposes only and does not constitute a policy guarantee.

What are the benefits of Canada Life’s whole life insurance?

Canada Life’s whole life policies provide lifelong coverage while building guaranteed cash value that you can use during your lifetime. They also allow you to pay off your policy quickly (in 10 or 20 years) or spread payments over a longer period of time (until age 100). Key benefits include:

No maximum coverage: Canada Life’s whole life policies have no set upper limit, meaning you can get as much coverage as you need. However, amounts over $50 million require special underwriting

Four dividend options: Dividends can be received in the form of cash payments, premium reductions, paid-up additions, and enhanced insurance

Additional deposit option (ADO): You can increase your policy’s coverage and cash value by making extra payments. However, ADO is subject to MTAR limits, so excess payments may be restricted once the policy is close to the tax-exempt shelf

Flexibility with premium offset: You can cover some or all of your premium payments using dividends. However, you must bear in mind that premium offset is not guaranteed and depends on investment performance, interest environment, and company experience
Children’s term life insurance rider: You can include term life insurance on your children with these policies. Future children are added at no additional cost until you turn 55

When it comes to coverage, Canada Life offers several options, including:

Single life: Covers one person and pays a death benefit upon their passing

Joint-first-to-die: Covers two people and pays a death benefit when the first insured person dies. The surviving person remains covered for an additional 60 days, during which they can buy a new policy on their life, with no underwriting

Joint-last-to-die (premiums to first death): Covers two people with premiums payable until the death of the first insured person. Premium payments are higher under this plan

Joint-last-to-die (premiums to last death): Covers two people with premiums payable until the death of the second insured person. Premium payments are lower under this plan

Types of whole life insurance offered by Canada Life

Canada Life offers two participating whole life policies with lifetime coverage, cash value growth, and annual dividends. Here’s how they differ:

Estate Select: Provides higher cash value and payout in later years and is ideal for parents looking to secure their children’s future
Wealth Select: Offers early cash value growth and is ideal for business owners seeking near-term liquidity

Key features of Canada Life’s Estate Select and Wealth Select plans

Category	Estate Select	Wealth Select
Premium type	Fixed, with flexible payment options (Max 10, Max 20, and Pay to age 100)	Fixed, with flexible payment options (Max 10, Max 20, and Pay to age 100)
Coverage amount range	$25,000 to no maximum	$100,000 to no maximum
Dividend options	Cash payment Premium reduction Paid-up additions Enhanced coverage	Cash payment Premium reduction Paid-up additions Enhanced coverage
Policy loan availability	Allow loans from cash value. However, ADO premium payments are paused while a loan is active. They resume after full repayment	Allow loans from cash value. However, ADO premium payments are paused while a loan is active. They resume after full repayment
Payment flexibility	Monthly or annually	Monthly or annually
Living benefits	Cash withdrawal Policy loan Collateral loan Premium offset	Cash withdrawal Policy loan Collateral loan Premium offset
Additional riders	Accidental death benefit, waiver of premium benefit, guaranteed insurability rider, business growth protection rider (if policy corporately-owned), and child’s term life insurance rider	Accidental death benefit, waiver of premium benefit, guaranteed insurability rider, business growth protection rider, and child’s term life insurance rider

Source: Canada Life

What are the pros and cons of Canada Life’s whole life insurance?

Canada Life’s whole life policies offer several benefits, from unlimited coverage to multiple payment and dividend options. However, they also have some limitations. Let’s take a closer look at them:

Advantages and disadvantages of Canada Life’s whole life insurance policy

Pros	Cons
Offers unlimited coverage based on your needs (special quote needed for amounts over $50M)	Under the joint-last-to-die (first death) plan, Additional Deposit Option (ADO) payments stop after the first insured person’s death. That means the survivor can no longer enhance their policy using ADO contributions
Includes term life insurance rider for children that covers future children at no additional cost (until you turn 55)	Premium offset availability depends on the participating account’s earnings
Offers flexibility to increase coverage and cash value through the additional deposit option (ADO)	Canada Life has the lowest dividend rate compared to other insurers
Allows you to offset some or all of your premiums using dividends

See how Canada Life compares to other whole life insurance providers in Canada

Highlights of Canada Life’s whole life insurance policy document

A Canada Life whole life insurance policy document (for Estate Select or Wealth Select) typically includes the following core sections and details:

Policyholder and insured information: Names, birth dates, and identifying information for the policy owner and the insured person
Coverage amount: The face amount payable as the death benefit, along with any additional coverage or riders selected.
Premium schedule: The premium amount, payment frequency (monthly, annual, etc.), and payment duration (10-pay, 20-pay, or to age 100). This section also outlines grace periods and the consequences of missed payments
Dividend options: The available choices for using annual dividends, such as receiving them in cash, reducing premiums, purchasing paid-up additions, or selecting enhanced coverage
Guaranteed values: Tables showing the annual buildup of guaranteed cash value and death benefit. Non-guaranteed values based on current dividend scales are also typically included
Policy loans and withdrawals: Rules for accessing cash value, including loan interest rates and how additional deposits are treated if a policy loan is active
Riders and optional benefits: Information on add-on features such as children’s term insurance, accidental death benefits, waiver of premium, and guaranteed insurability, along with the conditions for each
Beneficiary designation: Instructions for naming or changing beneficiaries and an explanation of revocable versus irrevocable beneficiary status
Plan structures: Details on whether the contract is single life, joint-first-to-die, or joint-last-to-die, and any related privileges such as survivor purchase rights
Termination and surrender conditions: Requirements and outcomes if the policy is cancelled or surrendered, including any surrender charges and the cash value payable to the owner
Investment and participating account disclosure: Information on how premiums are invested within the participating account and how dividends are determined for policyholders
Other legal provisions: Definitions, limitations, exclusions, such as the suicide clause, incontestability rules, reinstatement rights, and instructions on how to submit a claim

These sections are designed to give policyholders clear disclosure of their coverage, obligations, and available options throughout the life of a Canada Life whole life insurance policy.

What are the different limited-pay options offered by Canada Life?

Canada Life offers its participating whole life policies (Estate Select and Wealth Select) with three standard premium payment structures: 10-pay, 20-pay, and pay-to-age-100. The first two are true limited-pay designs, while pay-to-100 is a lifetime premium schedule that is often grouped with them as a third option.

Max 10 (10-pay): All required premiums are paid over 10 years. After year 10, the base policy is fully paid-up as long as no new riders or additional deposits are added
Max 20 (20-pay): Premiums are level and payable for 20 years. After year 20, the base policy becomes paid-up for life
Pay to age 100: Premiums remain level and continue until age 100. This is not a limited-pay option in the strict definition, but it is one of the three standard payment patterns available

Estate Select and Wealth Select can be issued using any of the three premium schedules (Max 10, Max 20, or pay-to-100) for both single-life and joint-life structures. Policyholders can later use features such as premium offset, where dividends cover ongoing premiums, to reduce or eliminate out-of-pocket payments. Contractually, however, the three payment structures listed above are the available choices at issue.

What are the different whole life dividend options that Canada Life offers?

Canada Life offers four dividend options that allow policyholders to customize the performance of their participating whole life insurance to their financial goals.

Cash payments: Dividends can be received as cash payouts, providing immediate flexibility, though the amount received may be taxable depending on the policy’s adjusted cost basis
Premium reductions: Dividends can reduce or eventually eliminate out-of-pocket premiums through a premium-offset strategy, depending on long-term dividend performance
Paid-up additions: Many policyholders reinvest dividends to buy paid-up additional coverage, which increases the death benefit, guaranteed cash value, and future dividend-earning potential, helping the policy compound over time
Enhanced coverage: This option combines paid-up additions with a term insurance component, offering higher early protection while gradually transitioning to permanent paid-up coverage as the policy matures

How are dividends for Canada Life’s participating policies distributed

Dividends in Canada Life’s participating policies are distributed based on the earnings of the participating (or “par”) account. This account combines premiums from all participating policyholders and invests them in a diverse portfolio of assets.

“Par” account earnings depend on several factors, including investment returns, policy cancellations, insurance claims, and operational costs. When the account outperforms expectations, Canada Life shares the excess earnings with policyholders through dividends.

Source: Canada Life

While dividends are not guaranteed and can vary, Canada Life has a strong track record of maintaining its dividend scale, having paid annual dividends at an interest rate of 5.25% to 5.75% over the past three years.

	2022	2023	2024	2025
Equitable	6.05%	6.25%	6.40%	6.40%
Manulife	6.10%	6.35%	6.35%	6.35%
iA Financial Group	5.75%	6.00%	6.25%	6.35%
Desjardins Insurance	5.75%	6.20%	6.30%	6.30%
RBC Insurance	6.00%	6.00%	6.25%	6.30%
Sun Life	6.00%	6.00%	6.25%	6.25%
Empire Life	6.00%	6.00%	6.00%	6.25%
Foresters Financial	5.50%	5.50%	5.50%	6.25%
Co-operators	5.90%	5.90%	6.00%	6.00%
Assumption Life	5.75%	5.75%	5.75%	5.75%
Canada Life	5.25%	5.50%	5.50%	5.75%

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How are Canada Life whole life insurance premiums invested?

When you pay premiums into a Canada Life participating whole life policy, they are pooled into the company’s participating account. Canada Life manages this account with two goals:

Long-term stability
Returns that respond to economic conditions

The account uses a disciplined asset–liability matching strategy to ensure that investment income can reliably support guarantees, cash values, and dividends.

Canada Life participating account: Asset mix (June 30, 2025)

Asset class	% of Account	What it means for policyholders
Fixed income (Total 60.0%)		Stable returns that support guarantees
Public bonds	28.3%	Long-term stability and predictable income
Private placements	14.9%	Higher yield with controlled risk
Mortgages	9.8%	Strong cash flow and diversification
Cash & equivalents	7.0%	Liquidity for claims and guarantees
Non-fixed income (Total 30.7%)		Helps support future dividend potential
Public equity	13.7%	Market growth participation
Real estate	12.3%	Inflation hedge and rental income
Private equity	4.7%	Long-term growth with low correlation
Other assets	9.3%	Derivatives and other holdings used for risk management

Source: Canada Life Combined Open Participating Account – June 30, 2025

How Canada Life’s participating account has performed over time

The performance of Canada Life’s participating account is shaped by long-term investment returns, interest rate trends, and economic conditions. The data shown below helps illustrate how the Dividend Scale Interest Rate (DSIR) compares with other benchmarks such as equity markets, GICs, government bond yields, and inflation across multiple time horizons.

These charts give you a clearer view of how stable the DSIR has been relative to more volatile market indices, reinforcing why participating whole life insurance is a long-term, steady-growth asset rather than a market-driven one.

Source: Canada Life

What this image shows: This table compares Canada Life’s DSIR for in-force participating policies with key financial benchmarks over different periods5 years, 10 years, 20 years, 30 years, and nearly 60 years. It highlights the DSIR’s long-term stability versus the higher volatility seen in equities and the lower returns from conservative investments like GICs and government bonds. Inflation (CPI) is included to show purchasing-power trends relative to these returns.

Source: Canada Life

What this image shows: This chart tracks annual investment returns of Canada Life’s participating account from 1996 to 2024 and compares them to the DSIR trendline. It visually demonstrates:

How the participating account’s yearly returns fluctuate with market conditions
How the DSIR remains far smoother and more stable due to smoothing mechanisms and long-term investment strategy
Key historical moments affecting the account, such as the 1999 demutualization and the 2020 creation of the combined open participating account

This chart helps explain why the DSIR does not spike or crash like market returns, reinforcing its role as a stable long-term performance measure for policyholders.

Are “par” account investments affected by market conditions?

Yes. While Canada Life employs a long-term investment strategy and “smoothing” mechanism to spread investment gains and losses over several years, changes in interest rates, stock prices, and real estate can still affect the “par” account’s investments.

How can I access my Canada Life whole life cash value?

You can access your policy’s cash value through:

Cash withdrawals: You can withdraw part or all of your cash value. A full withdrawal will result in your policy’s cancellation

Policy loans: You can borrow against your cash value. However, you won’t be able to make Additional Deposit Option (ADO) payments while your loan is active

Collateral loan: You can use your policy as collateral for a loan

Premium offset: If you have enough cash value, you can use it to pay part or all of your due premiums

What additional benefits or riders does Canada Life offer on their whole life plans?

Canada Life offers several additional benefits or riders on its whole life policies, including:

Total disability insurance benefit: Covers required premium payments if the insured experiences certain disabilities. To qualify, the insured must be 18 or older when the policy is issued

Accidental death benefit: Provides a higher payout if death is caused by certain types of accident. This can help beneficiaries manage unexpected payments that may arise due to the covered accident

Waiver of premium benefit: Covers required premium payments if the insured under this benefit becomes disabled

Guaranteed insurability rider: Allows you to obtain new permanent policies on the insured person without medical underwriting

Business growth protection rider: Allows you to purchase additional permanent policies on the insured person over a 10- or 15-year period

Children’s term life insurance rider: Provides term life insurance coverage for your children, including adopted and stepchildren. Future children are automatically added at no additional cost until you turn 55

See how Canada Life compares to the best whole life insurance providers in Canada

How to apply for Canada Life’s whole life insurance with PolicyAdvisor?

You can get a personalized whole life insurance quote for Canada Life through PolicyAdvisor, where you can compare different plans and policies from Canada’s top providers. Schedule a free consultation with our licensed advisors to explore the best options to protect your legacy.

Frequently asked questions

Is Canada Life’s whole life insurance worth it?

If you want lifelong protection with cash value growth that you can access in many ways, a whole life policy could be a smart choice. However, premiums for whole life insurance are generally higher than those for term life and may exceed some budgets.

Does Canada Life offer participating policies with dividends?

Yes. Canada Life offers two participating whole life policy plans, Estate Select and Wealth Select, with flexible payment options.

Do I need medical underwriting for a Canada Life whole life insurance plan?

Yes, Canada Life requires medical underwriting for new whole life insurance policies. However, if you already have whole life insurance, you can enhance your coverage using the Guaranteed Insurability Rider, without any underwriting.

How does the Canada Life participating account work?

Canada Life’s participating account pools premiums from all participating policyholders and invests them in a diversified portfolio of assets. The account’s earnings are influenced by various factors, including investment returns, mortality claims, policy cancellations, and operational expenses. When the account’s earnings exceed expectations, the surplus is distributed among policyholders as dividends.

What is the children’s term life insurance rider?

The children’s term life insurance rider is an optional add-on to Canada Life’s whole life insurance policies. It provides term life coverage for your biological, adopted, and stepchildren. Future children are automatically covered at no additional cost until you turn 55.

What happens if I stop paying my premiums?

If you miss a payment on your Canada Life whole life insurance policy, you have 31 days to make it up. If the premium remains unpaid after this period, Canada Life will automatically take out a policy loan on your behalf, provided your policy has enough cash value. This loan will keep your policy active as long as there’s sufficient cash value to cover future premiums and interest charges.

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Canadian lenders offering an Immediate Financing Arrangement (IFA)

An Immediate Financing Arrangement or IFA, in Canada, lets business owners and high-earning individuals use the cash value of a permanent life insurance policy as collateral to secure a loan. Several Canadian banks and credit unions offer IFA programs in Canada. Some of the popular Canadian lenders offering IFA include Equitable Bank, Manulife Bank, DUCA Credit Union, and a few more. In the section below, we will take you through these lenders and what they offer.

How to choose the right IFA lender in Canada?

Choosing the right Canadian lender depends on several factors. Here are a few factors to help you select a suitable lender for your IFA plan:

Borrowing limit: Confirm the percentage of cash surrender value (CSV) the lender will advance today and over time, and whether a “replacement of premium” option is available
Interest rates: Compare interest rates across lenders and their historical stability to help protect your expected returns
Ease of underwriting: Look at how complex the lender’s approval process is, what collateral they need, and how fast they can issue the credit
Collateral requirements: Confirm whether the policy assignment alone is sufficient, or if additional security or guarantees are required, especially for premium replacement structures
Availability of the advisor: Choose lenders whose dedicated advisor or relationship manager is accessible and experienced with IFAs, so any issue can be resolved quickly

Age (in years)

Gender

Smoker

Yes

Monthly Contribution Budget

How does an IFA work in Canada?

Getting an immediate financing arrangement in Canada can become easy when you follow these steps:

Canadian lenders offering an immediate financing arrangement

Here is a list of popular Canadian lenders offering an Immediate Financing Arrangement in Canada:

Equitable Bank
Manulife Bank
DUCA Credit Union

Equitable Bank IFA

Equitable Bank has a history dating back to 1970, when it was founded as the Equitable Trust Company. In 2013, it became a Schedule I Bank and now ranks as the 7th largest bank in Canada in terms of assets. Over the years, Equitable Bank has expanded its offerings with immediate financing arrangements or IFA to help you access up to 100% of the premium paid towards a permanent life insurance policy.

Here are some of the benefits of choosing Equitable Bank IFA:

There is no additional collateral required except for the insurance policy
Competitive interest rates so that you get better returns
Use of technology for the complete documentation process and easy access to the loan
An IFA is available to a wide range of borrowers, whether or not they are high net worth; the only requirement is an annual policy premium of $100,000
You can choose from program 1 and program 2, depending on your net worth and FICO score

Eligibility:

You will be eligible to get an IFA from Equitable if you:

Are a resident of Canada
Have a whole life insurance policy or are in the process of obtaining a whole life policy with an annual premium of $100,000
Meet the financial requirements to ensure that the loan can be paid back

Overview of Equitable Bank IFA

Typical client profile	High‑net‑worth individuals Business owners
Collateral	CSV of a whole life policy from an approved carrier
Approved insurance carrier	Canada life BMO insurance Empire life Sun life Manulife Equitable life of Canada iA financial group RBC insurance Desjardins insurance Foresters financial
Loan amount	$100,000 minimum annual premium
Premium frequency	Annual only
Loan repayment	Any time, without penalty
Application fee	$1000 or 0.25% of the annual premium amount, whichever is greater

Manulife Bank IFA

Manulife Bank dates back to 1993 and is one of the Canadian banks founded by an insurance company. It operates as a wholly-owned subsidiary of Manulife Financial, one of Canada’s largest and most respected financial institutions. With an asset size of more than $29 billion, Manulife Bank has grown significantly over the past three decades. It has offered IFA programs since 1995.

Here are some of the reasons why you should choose Manulife Bank IFA:

There is no maximum IFA size when you choose Manulife
You can borrow up to 100% of the cash value of a whole life insurance policy or 90% against a Universal Life (UL) policy invested in Guaranteed Investment Accounts (GIAs)
There is flexibility to choose from two structures: 100% CSV lending, or 100% replacement of premium, which requires paying the full premium and providing additional collateral
There is no penalty for repaying the loan amount
Experienced salespeople, loan adjudicators, and risk management people who know about IFA help you structure your IFA

Eligibility:

You will be eligible to get an IFA from Manulife if:

You have a minimum IFA size of $300,000 over ten years, or $30,000 per year

Overview of Manulife Bank IFA

Typical client profile	High-net-worth individuals or corporations Do not need the assets in the IFA/CSV arrangement for day-to-day living Willing to work with long-term planning and investment strategies
Collateral	CSV of whole life policy Additional collateral for 100% replacement of the premium structure
Approved insurance carrier	Manulife Canada life Sun life RBC insurance assurance BMO life iA financial group Ivari/Transamerica Life Equitable Life Empire Life Desjardins insurance
Loan amount	Minimum of $300,000 over ten years or $30,000 per year
Premium frequency	Annual
Loan repayment	Anytime, without penalty

DUCA Credit Union IFA

DUCA Credit Union (DUCA Financial Services Credit Union Limited) was founded in 1954. Over the years, it has evolved into one of the largest member-owned financial institutions in Ontario. It has an asset size of $6 billion and offers a range of financial services, including immediate financing arrangements. DUCA’s Immediate Financing Arrangement is a strategy that combines permanent life insurance with a loan, giving clients both insurance protection and access to capital for other investments.

Here are some of the benefits of choosing DUCA IFA:

DUCA makes the approval of a loan easier as it works with the major Canadian life insurance carriers
A 100% lending ratio is available for whole life policies
There are 3 primary structures to choose from: borrow the equivalent of 100% of the CSV each year, or the equivalent of 100% of the CSV and the entire premium each year, or 100% of the CSV plus the entire premium and a portion of net interest payments
A competitive interest rate applies

Eligibility:

You will be eligible to get an IFA from DUCA when:

The minimum loan amount is $50,000 and the maximum is $10,000,000
It is used for a personal or corporate line of credit (LOC)

Overview of DUCA IFA

Typical client profile	Emerging affluent individuals seeking to leverage assets for investment purposes Business owners seeking working capital Individuals seeking a cost-effective alternative to a policy loan
Collateral	A recent policy summary, no more than 30 days old An in-force life illustration (the CSV must never decline) Assignment of a life insurance policy
Approved insurance carrier	Sunlife financial Canada Life Manulife Ivari Equitable life BMO insurance RBC Insurance iA financial Empire life
Loan amount	$50,000 minimum
Premium frequency	Annual
Loan repayment	Any time
Application fee	Personal LOCs with personal security: No fees Corporate LOCs or personal LOCs with corporate security as collateral: Fee equal to 0.20% of the LOC amount (minimum $250)

Equitable Bank vs. Manulife Bank vs. DUCA Credit Union: Which IFA lender fits your needs?

Here is a table that illustrates the key differences between Equitable, Manulife, and DUCA, the popular lenders in Canada.

Equitable vs Manulife vs DUCA

Feature	Equitable bank	Manulife bank	DUCA
Minimum loan amount	$100,000 annual premium	$300,000 over ten years or $30,000 per year	$50,000
Collateral requirements	CSV of whole life policy	CSV of whole life policy and additional collaterals, only if you opt for 100% replacement of the premium structure	A recent Policy Summary, no more than 30 days old Assignment of Life Insurance Policy
Available structures to choose from	Program 1 and Program 2	100% CSV lending and 100% replacement of premium	3 primary structures: Borrow 100% of the CSV Borrow 100% of the CSV and the entire premium Borrow 100% of the CSV plus the entire premium and a portion of the net interest payments
Approved insurance carriers	Canada life BMO insurance Empire life Sun life Manulife Equitable life of Canada iA financial group RBC insurance assurance Desjardins insurance Foresters financial	Manulife Great West Life Sun life RBC insurance assurance BMO life iA financial group Ivari/Transamerica Life Equitable Life Empire Life Desjardins insurance	Sunlife financial Canada Life Manulife Ivari Equitable life BMO insurance RBC Insurance iA financial Empire life

Is IFA really helpful in Canada?

An immediate financing arrangement is helpful for high‑income Canadians and business owners who need permanent life insurance but also want to keep their capital available for investments. It becomes helpful by providing liquidity to fund your immediate business and investment needs.

However, it is also a strategy that involves risks like rising interest rates, fluctuating dividends affecting CSV and policy performance, making it work best when carefully designed and monitored with a qualified advisor. Consult our licensed insurance experts who can help you decide if IFA is the right choice for you. We will help you choose the right strategy no matter what. Schedule a consultation with our advisors now!

Frequently asked questions

What is IFA in Canada?

An Immediate Financing Arrangement (IFA) uses the cash surrender value of a permanent life insurance policy as collateral for a line of credit. You maintain coverage while potentially accessing capital for business or investment purposes, subject to credit approval and lender advance rates.

Which lenders offer IFA in Canada?

Many Canadian financial institutions offer IFAs. Examples include: Equitable Bank, Manulife Bank, and DUCA Credit Union.

Is it worth paying an IFA?

An IFA strategy is worthy if you are a high-income earner or business owner who has strong, stable cash flow and can invest the borrowed funds at attractive returns. If your income is uncertain, your risk appetite is lower, or you cannot comfortably handle rising interest costs, the IFA strategy may not be beneficial for you.

How to apply for IFA?

To apply for an IFA in Canada, first, secure a permanent life insurance policy. Assign the policy to the lender as collateral, then, depending on the program, borrow up to 100% of the policy’s CSV or up to the full premium amount. Use the funds for qualified business or investment purposes as appropriate.

Is IFA interest tax-deductible?

Interest may be deductible when borrowed funds are used to earn income from a business or property, and other conditions are met. Tax outcomes depend on your facts. Get tax advice from a financial advisor before implementing an IFA strategy.

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Biggest life insurance companies in Canada: A complete guide (2026)

Choosing the right life insurance provider is one of the most important financial decisions you’ll make, and understanding Canada’s insurance landscape is crucial for making an informed choice.

The insurance industry in Canada is dominated by several major players, each offering unique strengths in coverage options, financial stability, and customer service.

In this guide, we review 40 of the largest life insurance companies in Canada and compare their key offerings. Understanding which insurers lead the market can help you choose the right coverage for your family’s financial security.

Based on our analysis of total assets, market share, and national presence, the following companies stand out as Canada’s largest life insurers. The remaining insurers are covered later in our full comparison.

Top 5 biggest life insurance companies in Canada

Sun Life
Manulife
Desjardins
Canada Life
Industrial Alliance (iA)

Age (in years)

Gender

Smoker

Yes

Monthly Contribution Budget

Largest Life Insurance Companies in Canada (2026)

Explore the top 40 life insurance companies in Canada, ranked using trusted indicators of financial strength and business performance. We list all 40 insurers and further examine 28 leading companies to highlight their products, strengths, and key differentiators.

Biggest life insurance companies in Canada (2026)

Serial	Company	Founded/HQ	Revenue	Total Assets	LICAT	A.M. Best
1	Sun Life	1865, Toronto, ON	$21.4B	$1.51T	142%	A+
2	Manulife	1887, Toronto, ON	$26.6B	$1.3T	135%	A+
3	Desjardins	1948, Lévis, QC	$4.3B	$470.9B	146%	A
4	Canada Life	1847, Toronto, ON	$21.0B	$461.2B	130%	A+
5	Industrial Alliance (iA)	1892, Québec City, QC	$6.8B	$109.9B	139%	A+
6	Knights of Columbus	1882, New Haven, CT	$76M	$30.3B	274%	A+
7	RBC Insurance	1998, Toronto, ON	$2.3B	$28.6B	135%	A
8	Beneva	2020 (SSQ 1941/La Capitale 1940), Québec, QC	$4.8B	$27.5B	150%	A
9	BMO	2009, Toronto, ON	$1.3B	$20.1B	130%	A
10	Empire Life	1923, Kingston, ON	$1.4B	$19.7B	151%	A
11	Foresters (Canada segment)	1874, Toronto, ON	$910M	$18.5B	182%	A
12	Ivari	1927, Toronto, ON	$822M	$14.6B	131%	A
13	Wawanesa	1896, Wawanesa, MB	$300M	$11.5B	165%	A
14	Co-operators	1945, Guelph, ON	$1.0B	$10.5B	168%	A
15	Equitable Life	1920, Waterloo, ON	$920M	$10.2B	169%	N/A
16	Blumont Annuity Company	2016, Toronto, ON	$383M	$7.5B	147%	N/A
17	Primerica	1977, Duluth, GA	$359M	$4.1B	191%	A+
18	UV Insurance	1889, Drummondville, QC	$225M	$2.4B	172%	N/A
19	TruStage Life	1902, Toronto, ON	$120M	$2.4B	165%	A-
20	Blue Cross	1939, Multi-province	$686M	$2.3B	135%	A-
21	Assumption Life	1903, Moncton, NB	$147M	$2.3B	165%	A-
22	Metropolitan Tower (Canada branch)	1982, New York (Canada ops)	$331M	$2.3B	171%	A+
23	Securian Canada	1955, Toronto, ON	$990M	$1.2B	153%	A
24	Combined Insurance	1922, Chicago, IL	$230M	$1.1B	176%	A+
25	New York Life	1845, New York, NY	$42M	$696M	353%	A++
26	Humania	1874, Québec, QC	$200M	$678M	185%	N/A
27	British Cayman Insurance Company	Cayman Islands	$77M	$471M	176%	N/A
28	Serenia Life	1972, Waterloo, ON	$20M	$371M	177%	N/A
29	Chubb Life	1882, Toronto, ON	$342M	$345M	163%	A+
30	TD Life	1855, Toronto, ON	$155M	$344M	200%	N/A
31	Connecticut General	1957, Bloomfield, CT	$4M	$195M	223%	A
32	CIBC Life	1961, Toronto, ON	$29M	$164M	494%	NR
33	Cigna Life	1982, Bloomfield, CT	$111M	$136M	245%	A
34	Aetna Life	1939, Toronto, ON	$28M	$98M	496%	A
35	American Income Life	1951, Waco, TX	$71M	$64M	169%	A+
36	American Health & Life	1954, Fort Worth, TX	$17M	$64M	576%	A-
37	Allianz Partners	Paris (Canada branch)	$15M	$38M	271%	N/A
38	Reliable Life	1887, Hamilton, ON	$3M	$14M	310%	N/A
39	Jackson National Life	1961, Lansing, MI	$254K	$11M	458%	A
40	Teachers Life	1972, Waterloo, ON	$25M	N/A	234%	N/A

* Methodology and sources for the above table

We standardize “revenue” as Insurance Service Revenue under IFRS 17 and reconcile across sources. Where company-year figures differ, we use the latest audited report and note variances in footnotes.

Office of the Superintendent of Financial Institutions (OSFI) financial data (2024)
A.M. Best Financial ratings (2025)
Company annual reports

Your benefits are protected: If a member life insurer fails, Assuris protects your policy up to $1,000,000 or 90% of the death benefit, whichever is higher. This safety net applies to most Canadians.

Read our detailed review of the best life insurance companies in Canada

1. Sun Life

$1.51T • Assets

Overview

Sun Life Financial, Inc. is one of the largest life insurers in the world, and also one of the oldest, with a history spanning back to 1865.

Apart from Canada, they have a presence in the U.S. and in seven Asian markets, including China and India.

Insurance Products Offered

Term life insurance Permanent life insurance Mortgage protection insurance Critical illness insurance Disability insurance Health & dental insurance Travel insurance Long-term care insurance Investments and savings: retirement income plans, asset management, etc. Financial advice

Why choose Sun Life

✓ Introduces a large number of digital projects, including Prospr by Sun Life to assist Canadians with their financial goals

✓ Connects clients with a licensed advisor, assess their financial needs, and track their financial goals through Prospr

✓ Provides round-the-clock access to medical and mental health professionals via the Lumino Health Virtual Care platform

✓ Engages in community initiatives and partnerships, focusing on building healthier communities

GET QUOTE

Read our full Sun Life insurance review

2. Manulife

$1.3T • Assets

Overview

Manulife Financial Corporation is one of the largest life insurers in Canada, and also one of the most globally recognized, with operations in Canada, the U.S. (through John Hancock), and multiple Asian markets. Founded in 1887, the company manages approximately $1.3 trillion assets under management and administration globally.

Insurance Products Offered

Term life insurance Permanent life insurance (whole life, universal life) Mortgage protection insurance Critical illness insurance Disability insurance Health & dental insurance Travel insurance Group benefits and workplace plans Banking solutions through Manulife Bank

Why choose Manulife

✓ Provides AI-powered accelerated underwriting up to $5M for ages 18-50

✓ Rewards clients for healthy habits with premium savings and lifestyle rewards through the Manulife Vitality program

✓ Expands access to coverage for diabetes and HIV-positive applicants

✓ Offers strong financial stability with A+ ratings from A.M. Best and nearly $1 trillion in global assets

GET QUOTE

Read our full Manulife Term Life Insurance Review

3. Desjardins

$470.9B • Assets

Overview

Desjardins is well known across Canada, offering a wide variety of financial services and insurance products.

The company mainly focuses on life, health, and home insurance, and wealth management services. They also offer business services like point-of-sale payments and cash management.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Disability insurance Health & dental insurance Travel insurance Auto & RV insurance Home insurance Pet insurance Group insurance Creditor insurance Business insurance Investments and savings: guaranteed investment accounts, wealth management, loans, etc. Mortgages

Why choose Desjardins

✓ Operates as a cooperative financial institution owned and governed by its members, with the Melodia portfolio helping users invest in diversified assets such as stocks and bonds

✓ Introduces the “caissassurance” model, enabling customers to obtain insurance products directly through their neighbourhood caisse populaire

GET QUOTE

Read our full Desjardins Insurance Review

4. Canada Life

$461.2B • Assets

Overview

Canada Life is one of the oldest and most stable life insurers in the country. Up until recently, it came second to Manulife in the number of annual premiums, which was no surprise given that Manulife is one of the largest companies in the world.

In 2020, Great West Life merged with its sister companies, London Life and Canada Life, into the single Canada Life Assurance Company brand. That merger pushed Canada Life to the top of the charts.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Disability insurance Health & dental insurance Creditor insurance Business insurance & workplace benefits Investments & savings: segregated funds, annuities, retirement planning, etc. Mortgages

Why choose Canada Life

✓ Holds $461 billion in assets, making it one of the largest life insurance companies in Canada

✓ Provides accessible healthcare and affordable medication through its DrugHub mobile application

✓ Supports corporate social responsibility initiatives, including the Health and Homelessness Fund that raised $500,000 for the homeless in London, Ontario

GET QUOTE

Read our full Canada Life Term Life Insurance Review

5. iA (Industrial Alliance)

$109.9B • Assets

Overview

iA (Industrial Alliance) Financial Group is one of the largest insurance and wealth management groups in Canada. They also have operations in the United States. It was founded in 1892 and offers both individual and group benefits products.

iA is more than an insurance company; they also work in property management and real estate. They rent out many office spaces in major cities across Canada.

Insurance Products Offered

Term life insurance Permanent life insurance Mortgage protection insurance Critical illness insurance Disability insurance Travel insurance Car & RV insurance Home insurance Investments and savings: registered savings plans, annuities, loans, etc.

Why choose iA

✓ Maintains a strong financial foundation, serving over 4 million clients with the help of over 25,000 representatives

✓ Provides 24/7 direct access to healthcare professionals, along with telemedicine and stress and wellness management programs through the Dialogue wellness application

GET QUOTE

Read our full iA Term Life Insurance Review

6. Knights of Columbus

$30.3B • Assets

Overview

Knights of Columbus is a Catholic fraternal organization founded in 1882 as a mutual benefit society for Catholic people who moved to the US. It provides coverage for members and their families, offers insurance and financial services, and actively engages in charitable work.

Insurance Products Offered

Term life insurance Permanent life insurance Disability insurance Long-term care insurance Investments and savings: investment management, annuities, etc.

Why choose Knights of Columbus

✓ Engages in charitable work, donating over $185 million and contributing 49 million volunteer hours in 2022 alone

GET QUOTE

Read our full iA Term Life Insurance Review

7. RBC Insurance

$28.6B • Assets

Overview

The Royal Bank of Canada (RBC) is one of North America’s most well-known financial institutions. RBC Insurance is the division that provides insurance products and services to individuals and businesses across Canada.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Disability insurance Health insurance Travel insurance Auto insurance Home insurance Group insurance Creditor insurance Business insurance & reinsurance Investments and savings: guaranteed investment accounts, wealth management, loans, etc. RBC Private Insurance, a comprehensive, customizable risk protection package

Why choose RBC Insurance

✓ Offers innovative Reinsurance Business solutions, insuring the risks of other insurance and reinsurance companies and covering life, longevity, disability, and accident

✓ Provides specialized options for business clients, including business loan insurance and group benefits programs

✓ Enjoys robust financial stability as part of the Royal Bank of Canada, one of the largest banks globally

GET QUOTE

Read our full RBC Term Life Insurance Review

8. Beneva

$27.5B • Assets

Overview

Beneva, formed from the merger of Quebec-based SSQ Insurance and La Capitale, ranks among Canada’s top mid-tier life insurers by assets (~$27.5B) and regional presence.

SSQ Insurance was founded in 1944, while La Capitale was founded just a few years earlier, in 1940. Both companies were founded and operated on mutualist values, which have carried on with their merger into Beneva. This makes it one of the biggest mutual insurance companies in the country.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Disability insurance Health & dental insurance Auto & RV insurance Home insurance Group insurance Creditor insurance Business insurance Investments and savings: guaranteed investment accounts, wealth management, loans, etc.

Why choose Beneva

✓ Enables customers to monitor and manage their investment portfolio through the Client Centre online platform, with 24/7 access to policies, claims submissions, and tracking

✓ Connects users to the top three doctors in the area through the Assistance Benefit service during emergencies

✓ Supports student-athletes and funds over 200 young sports enthusiasts

GET QUOTE

Read our full Beneva Life Insurance Review

9. BMO

$20.1B • Assets

Overview

BMO Financial Group is one of the largest financial institutions in Canada, if not the world. It was founded in 1817 as the Bank of Montreal.

BMO Insurance is a part of BMO that sells insurance policies and similar services.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Travel insurance Investments and savings: income annuities, guaranteed investment funds, etc.

Why choose BMO

✓ Invests in digital tools such as online policy management and claims submission to improve the customer experience

✓ Leverages BMO’s strong banking network to offer integrated financial and insurance solutions

✓ Maintains strong financial stability as part of one of Canada’s largest banking institutions

GET QUOTE

Read our full BMO Term Life Insurance Review

10. Empire Life

$19.7B • Assets

Overview

Empire Life was founded in Kingston, Ontario, in 1936. The company operates services, sales, and marketing centres throughout Canada. They are most well known for their permanent participating life insurance policies.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Disability insurance Health & dental insurance Group insurance Investments & savings: RRSPs, annuities, etc.

Why choose Empire Life

✓ Maintains strong financial stability, with a Life Insurance Capital Adequacy Test (LICAT) ratio well above minimum regulatory requirements

✓ Provides retirement and savings support through tools like the Retirement and Savings Tool to help users track goals and plan for retirement

GET QUOTE

Read our full Empire Life Insurance Review

11. Foresters

$18.5B • Assets

Overview

Foresters Financial is a company that offers financial services in Canada, the US, and the UK. It was founded over 140 years ago, in 1870. Many of Foresters’ life insurance products help charities.

Many of its life insurance products support charities through claims, grants, or special programs. Foresters underwrite the insurance policies offered by Canada Protection Plan.

Insurance Products Offered

Term life insurance Permanent life insurance Mortgage protection insurance Critical illness insurance Investments and savings: retirement income plans, annuities, etc.

Why choose Foresters

✓ Operates as a fraternal benefit society and offers unique member benefits such as competitive academic scholarships, volunteer grants, and everyday expense discounts

✓ Provides complimentary events for insured members and their families, including baseball games and amusement park outings

GET QUOTE

Read our full Foresters Term Life Insurance Review

12. ivari

$14.6B • Assets

Overview

ivari (formerly Transamerica Life Canada) was acquired by Wilton Re in 2015. They have been operating for more than 80 years, offering a variety of insurance policies and investment products.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Investments and savings: annuities, segregated funds, guaranteed interest accounts, etc.

Why choose ivari

✓ Engages in community support through charitable giving and partnerships, including collaboration with United Way Centraide Canada

✓ Offers the My Insurance View interactive tool to provide clients with personalized insurance solutions based on budget and premium-paying capacity

✓ Provides access to virtual healthcare through the Maple mobile app for eligible Critical Illness and SimplyLife policyholders and their dependents.

GET QUOTE

Read our full Ivari Term Life Insurance Review

13. Wawanesa

$11.5B • Assets

Overview

Wawanesa Mutual is the parent company of Wawanesa Insurance, which sells life and other insurance products. Founded in 1896 and based in Winnipeg, Manitoba, the company also operates as Wawanesa General in the United States, primarily selling property and casualty insurance in California and Oregon.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Disability insurance Auto insurance Home & renters insurance Pet insurance Group insurance Commercial/business insurance Farm insurance Investments and savings: registered savings plans, guaranteed investment accounts, annuities, etc.

Why choose Wawanesa

✓ Operates as a mutual company, meaning policyholders own the company and priorities align with customers’ needs

✓ Offers individualized service and a customer-focused approach

✓ Provides competitive rates without sacrificing coverage quality, appealing to value-conscious customers

GET QUOTE

Read our full Empire Life Insurance Review

14. Co-operators

$10.5B • Assets

Overview

The Co-operators Group Limited is a leading Canadian co-operative company. They offer a wide range of insurance and financial services, mostly through a network of financial advisors and brokers.

Insurance Products Offered

Term life insurance Permanent life insurance Mortgage protection insurance Critical illness insurance Travel insurance Auto & RV insurance Home insurance Property & casualty insurance (P&C) Group insurance Business insurance Farm insurance Brokerage services

Why choose the Co-operators

✓ Collaborates with governments, research organizations, municipalities, non-profits, and investors to build climate-resilient communities

✓ Has set net-zero targets for operations and investments to contribute to a healthier, sustainable future

GET QUOTE

15. Equitable Life

$10.2B • Assets

Overview

Equitable Life Insurance Canada is a federally regulated mutual life insurer, governed by federal rules. Like Beneva and Wawanesa, Equitable is also a mutual company that is partly owned by some of its clients.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Disability insurance Health & dental insurance Group insurance Investments and savings: retirement income protection, segregated funds, etc.

Why choose Equitable Life

✓ Enables customers to manage policies online, including requesting policy loans, transferring investments, and changing beneficiaries, offering ease and flexibility

✓ Offers the First Home Savings Account (FHSA) with maximum coverage amounts and attractive home insurance benefits at reduced premium costs for first-time homeowners

✓ Emphasizes individualized service, with dedicated insurance advisors providing guidance and support throughout the insurance process

GET QUOTE

Read our full Equitable Life Insurance Review

16. Primerica

$4.1B • Assets

Overview

The Primerica Canada Insurance Company was started in 1986. It is a subsidiary of Primerica Life Insurance Company, offering insurance and other financial services.

Insurance Products Offered

Term life insurance Disability insurance Auto insurance Investment management services Pre-paid legal services Financial Needs Analysis (FNA) services

Why choose Primerica

✓ Helps families achieve financial security by offering accessible financial products tailored to individuals earning between $30,000 and $100,000 annually

✓ Offers the Primerica Representative application to help individuals understand their financial position and create an improved financial plan within 30 minutes

GET QUOTE

17. UV Insurance

$2.4B • Assets

Overview

UV Insurance, formerly known as UL Mutual, was founded in 1889 in Quebec.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Group insurance Investments and savings: retirement products, guaranteed investments, etc.

Why choose UV Insurance

✓ Earns recognition as the second most sustainable SME in Quebec, building on a century of accomplishments

✓ Collaborates with ventures that share its values in sustainability and innovation

GET QUOTE

Read our full UV Life Insurance review

18. TruStage Life (Assurant Life)

$2.4B • Assets

Overview

The insurance company known as Assurant Life rebranded into TruStage in 2022 after it was bought by CUNA Mutual Group.

As an insurance company, they specialized in selling insurance for end-of-life planning, like funeral insurance and executor protection insurance. They also offer services like assessing and handling final documents (wills, trusts, etc.).

Insurance Products Offered

Term life insurance Permanent life insurance Cancer, heart attack, and stroke insurance coverage Auto insurance Home insurance Business insurance Investments and savings: annuities, wealth management services, etc. Funeral pre-planning services

Why choose TruStage Life

✓ Offers guaranteed issue and permanent final expense coverage with limits up to $300,000, including a two-year graded period for non-preferred applicants; whole life coverage is available up to $100,000.

✓ Partners with credit unions to provide life insurance options to members who already do business with their credit union

GET QUOTE

19. Blue Cross

$2.3B • Assets

Overview

There are many different Blue Cross member plans in Canada. The Canadian Association of Blue Cross Plans is the group that represents all of them nationally.

Blue Cross is best known for group insurance and travel insurance. Canadians who are Blue Cross members can save money on insurance for various services, including vision, medical, and more, through their Blue Advantage program.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Disability insurance Health & dental insurance Travel insurance Group insurance

Why choose Blue Cross

✓ Offers the “Young Adults Benefits Package” to help young working individuals access health and dental coverage at minimal cost

✓ Engages in wellness and preventive care programs, reflecting a commitment to healthier communities and public health

GET QUOTE

20. Assumption Life

$2.3B • Assets

Overview

Assumption Life is best known for its no-medical term life plans. They were founded in 1903 in New Brunswick, Canada. But they were originally a fraternal society in Massachusetts, USA, before they decided to start selling insurance.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Group insurance Commercial mortgage insurance Investments and savings: retirement products

Why choose Assumption Life

✓ Provides a Registered Investment Account (RIA) with low management fees and high-performing funds, designed for fee-conscious clients

✓ Offers high-performing, pre-packaged funds that are professionally managed and tailored to each client’s risk tolerance and time horizon

GET QUOTE

Read our full Assumption Life Insurance Review

21. Securian Canada

$1.2B • Assets

Overview

Most people know Securian Canada by its old name, Canadian Premier Life. It is a company that offers financial management services and several insurance products.

Insurance Products Offered

Term life insurance Permanent life insurance Mortgage protection insurance Critical illness insurance Group insurance Creditor insurance Business insurance Asset management services Customized products for financial institutions

Why choose Securian Canada

✓ Focuses on providing insurance solutions tailored for financial institutions and affinity groups to meet their unique market needs

✓ Adds value to memberships by offering group pricing through programs such as the CPA insurance program

GET QUOTE

22. Combined Insurance Company of America

$1.1B • Assets

Overview

Combined Insurance Company of America is owned by Chubb Insurance Company in the US. It was founded in 1922 and sells insurance to people and businesses.

Insurance Products Offered

Supplemental life insurance Critical illness insurance Disability insurance Combined Insurance Worksite Solutions offers comprehensive insurance coverage to complement group insurance

Why choose Combined Insurance

✓ Prioritizes accessible and easy-to-understand supplemental insurance while providing information and assistance to help clients evaluate their options

✓ Earns recognition as one of the best military-friendly employers, reflecting a commitment to hiring veterans and supporting military families

GET QUOTE

23. Humania

$678M • Assets

Overview

Humania Assurance was founded in Quebec in 1874 as a mutual society. They offer a lot of no medical life insurance options and are best known for how quickly they issue policies.

Insurance Products Offered

Term life insurance Mortgage insurance Critical illness insurance Disability insurance Health insurance Travel insurance

Why choose Humania

✓ Prioritizes a human-centric strategy, ensuring customer interactions are marked by empathy and understanding to improve the overall experience

✓ Celebrates 150 years of serving clients and building a strong network of policyholders, advisors, and trusted partners in Canada

GET QUOTE

Read our full Humania Term Life Insurance Review

24. Serenia Life

$371M • Assets

Overview

Serenia Life is a U.S. fraternal benefit society that sells insurance in Canada. It was founded in 1972 and used to be called Faithlife Financial up until 2008. Their company is inspired by Christian values.

Insurance Products Offered

Term life insurance Permanent life insurance Investments and savings: investment management, annuities, etc.

Why choose Serenia

✓ Provides one-on-one financial guidance, ensuring each member receives advice tailored to their needs

✓ Encourages members to engage in charitable activities and community support, reflecting a belief that prosperity and generosity go hand in hand

GET QUOTE

25. Chubb Life

$345M • Assets

Overview

Chubb Life Insurance Company was founded in 1882. Now, they are a trusted and reliable provider of insurance in Canada. They have offices in Ontario, Quebec, Alberta, and British Columbia.

Insurance Products Offered

Term life insurance Permanent life insurance Critical illness insurance Travel insurance Auto insurance Home insurance Property & casualty insurance Group insurance Business insurance

Why choose Chubb Life

✓ Integrates insurance products into multiple ecosystems through the Chubb Studio platform, enabling simple and effective digital access to coverage

✓ Offers a client benefits program that provides access to career, legal, financial, and mental health counseling

GET QUOTE

26. CIBC

$164M • Assets

Overview

CIBC Insurance is a part of CIBC (the Canadian Imperial Bank of Commerce), one of Canada’s biggest banks. The bank itself was formed in 1961 after two older Canadian banks merged into one. They later started selling insurance products too.

Insurance Products Offered

Term life insurance Critical illness insurance Travel insurance Auto insurance Home insurance Creditor insurance

Why choose CIBC

✓ Prioritizes environmental, social, and governance (ESG) principles by supporting sustainable financing initiatives and renewable energy investments

✓ Enhances customer experience through advanced technology, including mobile banking apps and digital tools, to make insurance simpler for users

GET QUOTE

27. American Income Life

$64M • Assets

Overview

American Income Life was founded in 1951. The company now sells insurance in Canada, the US, and New Zealand. They focus on helping working families and members of credit unions, labour unions, and other associations get insured.

Insurance Products Offered

Term life insurance Critical illness insurance Supplemental health insurance

Why choose American Income Life

✓ Provides a no-cost Legacy Will Kit to help users secure their family’s future and ensure their wishes are honored

✓ Maintains upfront and honest pricing with no hidden fees or commissions

✓ Empowers clients through financial education, offering seminars, workshops, and resources to support informed decisions

GET QUOTE

28. Reliable Life

$14M • Assets

Overview

Reliable Life has been helping Canadians with insurance since 1887. They are also part of a company called the Old Republic International Corporation, which is listed on the New York Stock Exchange. Reliable Life mostly sells travel insurance and accident insurance for students.

Insurance Products Offered

Travel insurance Accident insurance

Why choose Reliable Life

✓ Reliable Life offers annuity products that provide a steady stream of income for life

GET QUOTE

What’s new in our 2026 insurance company rankings?

Rankings now weigh financial strength, product flexibility, and customer experience,so size alone doesn’t decide the winner. Here’s how we score and why it matters to you.

We measure financial strength by looking at each insurer’s total assets, LICAT ratio (a key solvency indicator), and credit ratings from A.M. Best, S&P, and Moody’s. This helps us understand how stable and reliable each company is when it comes to paying claims.

We also evaluate the range and flexibility of insurance products available, including life, health, and supplemental coverage. Insurers offering more customization, modern features, and digital tools score higher in this area.

Lastly, we consider the customer experience, from how quickly claims are paid to how easy it is to manage your policy online. We review third-party ratings, client feedback, and the overall quality of digital services.

This new ranking system makes it easier for you to compare insurance companies in Canada and find the one that fits your needs best.

IFRS 17: How it changes reported revenue in 2026 rankings

International Financial Reporting Standard 17 (IFRS 17) replaced IFRS 4 (Insurance Contracts) for Canadian life insurers beginning January 1, 2023. It requires companies to recognize revenue based on the value of insurance services provided over time rather than on gross premiums received. This change often results in lower headline revenue numbers under the new standard, reflecting a more transparent and economically relevant view of insurance operations.

What it means for policyholders:

IFRS 17 does not change your premiums or coverage. You still receive the same benefits. However, it gives you a clearer view of how insurers manage risk and earn profits.

For investors, this standard improves transparency, reduces earnings volatility, and provides better insight into long-term financial performance.

How to choose the right insurer

When comparing the top life insurance companies in Canada, it’s important to go beyond size and brand recognition. Choosing the right provider means assessing financial strength, coverage options, premium affordability, and regional relevance.

Whether you are a young family, business owner, retiree, or high-net-worth individual, matching your needs with the right insurer can lead to better protection and long-term value.

Key selection criteria for top Canadian life insurance companies

Category	What to look for
Financial strength	A.M. Best Superior rating (A/A+ preferred) for maximum stability A- Excellent minimum for secure coverage LICAT ratio >120% (150%+ ideal) Over 100 years in business Strong capital reserves
Coverage needs	Term life (10, 20, or 30 years) Whole or universal life Critical illness and disability options
Premium affordability	Competitive quotes from multiple providers Annual vs. monthly premium choice Stable premiums over time Dividend potential for permanent life
Digital and human support	Online comparison tools Access to licensed advisors Transparent educational resources

Is it better to choose a bigger insurance company?

Buying a policy from one of the biggest insurance companies in Canada may not always be the best choice. Just because a company is the biggest, it does not mean that it is the right company for your needs. Sometimes, going with a smaller company may be to your advantage.

This is why it is best to speak with our licensed advisors. They have intimate knowledge of the Canadian insurance market and can recommend the best provider for your specific needs.

Comparing large vs. small insurance companies

Choosing the right insurer depends on what matters most to you. Larger companies offer scale, extensive coverage options, and advanced technology, while smaller companies provide personalized service, flexible products, and local expertise. The table below highlights key differences to help you decide.

Key differences between large and small insurance companies

Feature	Big insurance	Small insurance
Experience	Decades of industry expertise	Stable, often niche-focused
Coverage Options	Term & permanent, high limits	Tailored products, flexible riders
Price	Slightly higher, depends on scale	Competitive, sometimes lower
Customer Service	Fast, multiple offices & agents	Personalized, flexible, responsive
Accessibility	Extended hours, nationwide	Limited locations/hours
Technology	Advanced tools for quotes, claims, policy management	Simpler tech, more customization
Values & Ethics	Standard corporate practices	Local, mutual, or ethically aligned

Still looking for the top insurance companies in Canada?

If you’re still not sure whether one of the largest Canadian insurance companies is right for you, our advisors are happy to help you out! Schedule a call and let our experts answer your questions about what is offered by Canadian insurance companies, big and small.

Online insurance brokers like PolicyAdvisor.com let you compare insurance quotes from 30 of the country’s best insurance companies. Schedule a call or try out our instant insurance quoting tools to see how much you can save by comparing quotes online

Frequently asked questions

How often do rankings of life insurance companies change?

Rankings can change annually or even more frequently, depending on factors like financial performance, customer service ratings, innovation, and regulatory changes. A company’s solvency, claims handling, and market share can all influence its position in industry reports or consumer rankings.

What factors affect the financial stability of life insurance companies?

Financial stability is typically measured by solvency ratios, capital reserves, investment performance, and underwriting profits. Companies with diverse investment portfolios, strong risk management practices, and consistent profitability are generally more stable and reliable over the long term.

Can I buy life insurance from a company not based in Canada?

You can only purchase life insurance from international companies that are licensed to operate in Canada. These insurers must comply with Canadian regulations and are monitored by federal or provincial insurance regulators. Buying from an unlicensed foreign insurer could leave you unprotected or unable to enforce your policy.

What are the benefits of choosing a large life insurance company over a smaller one?

Large insurers often offer a wider range of products, stronger digital platforms, and greater financial stability. They may also have more streamlined claims processes and better access to additional services, such as financial planning tools or wellness programs. However, smaller insurers may provide more personalized service or competitive pricing.

How do consumer ratings affect life insurance companies?

Consumer ratings influence a company’s reputation and can guide potential customers during their decision-making process. Positive reviews can enhance trust, while repeated complaints may raise concerns. While not the sole factor, consumer feedback is a helpful indicator of service quality and client satisfaction.

What should I do if I am not satisfied with my life insurance provider?

You should begin by reviewing your policy, identifying specific concerns and contacting your insurer’s customer service to discuss your issue. If the problem persists, you can file a complaint with your provincial insurance regulator. If you are considering switching providers, ensure your new policy is active before cancelling the old one to avoid any coverage gaps.

Which are the best insurance companies in Canada for 2026?

The best insurance companies in Canada for 2026 are determined by their financial strength, customer satisfaction, product innovation, and digital capabilities. Leading providers include:

Sun Life, for strong client satisfaction and wellness-focused products
Manulife, for innovation and global reach
Desjardins, for cooperative structure and personalized service
Canada Life, for scale and comprehensive coverage options
Industrial Alliance, for regional expertise and competitive pricing

How do I choose between the largest insurance companies in Canada?

Choosing the right insurer involves assessing several factors such as financial strength (A.M. Best ratings and LICAT ratios), product suitability based on your needs, pricing competitiveness, quality of service and claims experience, and access to digital tools for convenience and support.

Are bigger insurance companies always better?

Larger insurance companies offer advantages such as financial stability, broad product availability, and extensive support networks. However, they may not always be the best fit. Smaller or regional insurers can provide more competitive pricing, personalized service, and flexible options tailored to specific needs.

What is the difference between the top 10 and top 20 insurance companies in Canada?

The top 10 insurers are typically national leaders with large-scale operations and diversified offerings. The top 20 includes regional and specialized insurers that may excel in niche markets or offer unique advantages in pricing, service, or policy design.

How often do rankings of the biggest insurance companies change?

Rankings among Canada’s top five life insurers tend to remain consistent year over year. However, changes can occur due to mergers, premium growth, or shifts in market strategy. Notably, Canada Life’s position strengthened following its merger with Great-West Life and London Life.

Can I trust the financial ratings of Canada’s largest insurance companies?

Yes. Canada’s major insurers are rated by independent global agencies such as A.M. Best, Moody’s, S&P Global, and DBRS Morningstar. These ratings reflect a company’s financial strength, claims-paying ability, and long-term stability, and are reviewed regularly.

Do the top Canadian life insurance companies operate nationwide?

Yes, all top life insurance companies in Canada are licensed to operate nationwide. While some have stronger regional footprints, such as Desjardins and iA in Quebec or Wawanesa in the West, they serve clients across the country either directly or through licensed advisors.

What makes the best insurance companies in Canada in 2026 different from previous years?

Top insurers in 2026 are distinguished by their investment in digital transformation, faster underwriting through AI, integrated wellness and health features, ESG investment practices, and personalized insurance solutions using data and analytics. These enhancements improve both accessibility and client experience.

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Manulife whole life insurance review (2026)

Whole life insurance continues to attract Canadians who want lifetime coverage, affordable premiums, and the ability to build long-term cash value. Manulife is one of the most established names in this space and is known for its financial strength and stable participating account performance.

In this review, we’ll help you take a closer look at Manulife’s whole life insurance plans, how they build cash value, the available dividend options, key features, and who can benefit most from this type of coverage.

Best for overall performance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered:

Manulife Par
Manulife Par with Vitality Plus
Performax Gold

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

A+

Dividend Scale Interest Rate (DSIR)

6.35%

PolicyAdvisor rating

Manulife whole life insurance earns a 5 out of 5 rating from PolicyAdvisor for its overall performance, disciplined long-term dividends, and industry-leading financial strength. Manulife operates one of Canada’s largest participating life insurance platforms, supported by a $15.98 billion participating account and more than 307,000 active participating policies.

Age (in years)

Gender

Smoker

Yes

Monthly Contribution Budget

Manulife’s participating plans share in company profits through annual dividends. The Dividend Scale Interest Rate (DSIR) reflects participating account investment performance and directly influences policyholder dividends. For 2025–2026, Manulife maintains a 6.35% DSIR for Manulife Par and Manulife Par with Vitality Plus policies issued June 23, 2018, or later.

Manulife’s DSIR track record (2018–2026)

Year	DSIR
2018–2019	6.25%
2019–2020	6.25%
2020–2021	6.00%
2021–2022	6.00%
2022–2023	6.10%
2023–2024	6.35%
2024–2025	6.35%
2025–2026	6.35%

The stable DSIR from 2022 onward reflects consistent investment results, prudent risk management, and the strength of Manulife’s participating account.

	2022	2023	2024	2025
Equitable	6.05%	6.25%	6.40%	6.40%
Manulife	6.10%	6.35%	6.35%	6.35%
iA Financial Group	5.75%	6.00%	6.25%	6.35%
Desjardins Insurance	5.75%	6.20%	6.30%	6.30%
RBC Insurance	6.00%	6.00%	6.25%	6.30%
Sun Life	6.00%	6.00%	6.25%	6.25%
Empire Life	6.00%	6.00%	6.00%	6.25%
Foresters Financial	5.50%	5.50%	5.50%	6.25%
Co-operators	5.90%	5.90%	6.00%	6.00%
Assumption Life	5.75%	5.75%	5.75%	5.75%
Canada Life	5.25%	5.50%	5.50%	5.75%

SPEAK TO ADVISOR APPLY NOW

Manulife offers two participating whole life options:

Manulife Par: A traditional participating whole life plan designed for long-term value, disciplined growth, and strong guaranteed features
Manulife Par with Vitality Plus™: Combines participating whole life coverage with the Vitality rewards program, adding lifestyle-based benefits and engagement incentives

Rating methodology

PolicyAdvisor rates Manulife whole life insurance 5/5 based on six factors: long-term dividend stability, early/long-term cash-value performance, premium flexibility, par fund strength, fees, and riders.

What are the key features of Manulife whole life insurance?

Manulife’s whole life insurance plans start building cash value from the early years of the policy. The maximum issue age for Manulife whole life insurance is 80 years and they offer two dividend options: paid-up insurance and cash.

Insured individuals can avail of policy loans up to 90% of the total cash value. However, non-repayment of these loans can lead to a deterioration in the policy’s overall value. With Manulife whole life insurance, policy holders can get additional riders including child protection, guaranteed insurability, term insurance, and total disability waiver.

Key features of whole life insurance from Manulife

Category	Details
Cash value accumulation	Immediate
Premium payment frequency	Monthly, annual, and PAC (pre-authorized chequing)
Maximum issue age	18-80 years
Coverage amount range	Coverage starts at $100,000 for 10 year, 20 year and pay to age 90 premium durations, and $500,000 for pay to age 100
Coverage options	Single life or joint-last-to-die coverage options
Dividend options	Paid-up insurance, cash, and premium reduction
Policy loan availability	Yes, up to 90% of the total cash value
Additional riders	Child protection Guaranteed insurability Term insurance Total disability waiver

What are the different Manulife whole life plans I can choose from?

Manulife offers two participating whole life insurance plans, Manulife Par with Vitality Plus™ and Manulife Par. Both policies offer immediate cash value growth and guaranteed access to cash value in the early years. For 10-pay, 20-pay, and pay to age 90 plans, the coverage starts at $100,000. For pay to age 100, the coverage starts at $500,000.

Manulife Par with Vitality Plus™ gives the insured individual access to the maximum-value benefits of Manulife Vitality, the company’s flagship rewards program. Manulife Par with Vitality Plus™ offers only single life coverage while Manulife Par offers single life and joint-last-to-die coverage options.

Manulife Par and Manulife Par with Vitality Plus™

Feature	Manulife Par	Manulife Par with Vitality Plus
Coverage amount	Starts at $100,000 for 10-year, 20-year, and pay-to-age-90 durations; $500,000 for pay-to-age-100	Starts at $100,000 for 10-year, 20-year, and pay-to-age-90 durations; $500,000 for pay-to-age-100
Policy fees	No policy fees, but some admin charges may apply	No policy fees, but some admin charges may apply
Payment duration options	10 years, 20 years, to age 90, or to age 100	10 years, 20 years, to age 90, or to age 100
Coverage options	Single life or joint last-to-die	Single life only
Eligibility for Vitality benefits	Access to Manulife Vitality Go™ benefits at no added cost	Access to maximum-value Manulife Vitality benefits
Upgrade option	Upgrade to Manulife Par with Vitality Plus before the 3rd anniversary (no underwriting required)	Not applicable
Issue age	18-80 years	18-80 years
Monthly Vitality® charge	Not applicable	– $15 for pay 10 years – $10 for pay 20 years – $6 for pay to age 90 – $4 for pay to age 100
Optional add-ons	– Add term life insurance – Skip payments if disabled (conditions apply) – Guarantee future eligibility for life insurance – Protect children and guarantee their future life insurance coverage	– Add term life insurance – Skip payments if disabled (conditions apply) – Guarantee future eligibility for life insurance – Protect children and guarantee their future life insurance coverage

Source: Manulife.ca

What are the pros and cons of Manulife’s whole life insurance?

Manulife’s participating whole life policies offer a range of benefits such as immediate cash value growth, the option to choose the frequency and duration of premiums, and access to riders. Manulife also offers deposit option payments where the insured individuals can make direct premium payments and increase their protection.

The downside with Manulife’s whole life insurance is that they do not offer non-participating plans and some policy owners may find the dividend and returns structure complex.

Pros and cons of Manulife whole life insurance

Pros	Cons
Immediate cash value growth and guaranteed cash value in the early years	Manulife does not offer non-participating whole life insurance plans
Deposit option payments are available where policy owners can make additional premium payments to increase protection	They offer only two dividend options while other insurers typically offer up to four
Option to choose the frequency and duration of premium payments	Manulife Par does not offer join-first-to-die coverage
Variety of riders offered by Manulife for different life events and needs
Access to Manulife Vitality, a rewards and discounts program

Highlights of Manulife’s whole life insurance policy document

A Manulife whole life insurance policy document includes the following key elements:

Policyholder and insured details: Basic information about the policy owner and the insured person, including names and ages
Coverage amount: The death benefit or face amount, along with the type of coverage (single life or joint-last-to-die)
Premium schedule: Premium amount, payment frequency, available payment methods, and rules for missed payments
Payment duration options: Choices such as 10-pay, 20-pay, pay to age 90, or pay to age 100
Dividend options: How dividends can be used, including paid-up additions or cash, and how earnings are allocated from the participating account
Guaranteed cash value: Tables showing guaranteed and non-guaranteed cash value growth over time
Policy loans and withdrawals: Rules for accessing cash value, including loan limits, interest rates, and the impact on policy values
Riders and optional coverage: Available add-ons such as child coverage, guaranteed insurability, term riders, and waiver of premium
Beneficiary information: How to name or update beneficiaries and the rules that apply
Plan structures: Available setups such as single life or joint-last-to-die and how they affect the payout
Surrender and termination conditions: What occurs if the policy is cancelled or surrendered and the guaranteed values payable
Investment and par account disclosure: How premiums are invested and how dividends are determined within the participating account
Legal and general provisions: Definitions, contestability rules, reinstatement options, exclusions, and claim procedures

Learn how you can build wealth with a whole life insurance policy

What are the different limited-pay options offered by Manulife?

Manulife’s whole life insurance (Manulife Par) offers several limited-pay premium structures designed to fully fund the policy within a defined period.

10-pay: Premiums are payable for 10 years, after which the policy becomes paid-up for life
20-pay: Premiums are payable for 20 years, and the policy is fully paid-up once that period ends
Pay to Age 90: Level premiums continue until the insured reaches age 90, with lifetime coverage following the final payment
Pay to Age 100: Level premiums continue until age 100. This option typically includes a higher minimum coverage amount, often $500,000 or more

Policyholders can choose single life or joint last-to-die coverage. These limited-pay structures provide certainty by ensuring premiums end at a fixed point while maintaining lifelong coverage once the payment period is complete.

What is Manulife Vitality?

Manulife Vitality is a wellness-enhanced insurance program that rewards policyholders for maintaining healthy habits. It’s designed to encourage better lifestyle choices and make wellness a part of your insurance experience.

When you’re enrolled, you earn Vitality Points for completing everyday health activities like walking, exercising, getting a flu shot, sleeping well, or meditating. As your points increase, your Vitality Status improves from Bronze to Silver, Gold, and Platinum, unlocking greater rewards and premium savings. These can include discounts on leading brands, fitness devices, and even travel or entertainment perks.

There are two versions of the program: Vitality Go™, which is included at no cost with all eligible plans, and Vitality Plus™, which offers enhanced benefits and exclusive rewards, such as the opportunity to earn a free Apple Watch®, for a small monthly fee. Manulife Vitality is also available with health and dental insurance to help members integrate wellness into both their financial and physical health goals.

What factors affect the performance of Manulife’s participating account?

Factors that influence the performance of Manulife’s participating account are mortality rates, policy cancellations, expenses and taxes, and investment returns. While a participating account is managed to ensure there is always enough money to pay death benefits and cash values, these factors do influence the account’s cash flow and performance.

Let’s understand the factors influencing the participating account:

Mortality rates: The death benefits of whole life policies are paid from the participating account. Insurers typically plan for the number of death benefits that they may have to pay in a given year. They make this assumption based on Canada’s overall life expectancy. Higher death benefits than expected will deplete the participating account’s funds faster, lower death benefits will have the opposite effect. This is why mortality rates are a crucial factor in determining how a participating account performs fiscally
Policy cancellations: Based on past consumer behaviour, Manulife makes pricing assumptions of the number of policies that will be cancelled every year. If the cancellation numbers are lower, the participating account may be adversely affected, and vice versa
Expenses and taxes: Underwriting costs, issuing contracts, making policy changes, and other administrative and operating expenses play a role in the participating policy’s performance. Manulife allocates resources towards these expenses in a manner that is fair and reasonable to the policy holders. If the operating charges are less than the company’s estimates, the participating account’s performance will be positive. If not, the performance may be affected negatively
Investment returns: The expected returns on an investment play a key role in determining the profitability of a participating account. If the actual returns on an investment exceed Manulife’s pre-determined numbers, it positively affects the participating account. The latter is true if the returns are lower than anticipated

Factors that influence Manulife’s participating accounts

Factor	Predictability	Stability	Impact on performance
Mortality	High	High	Low
Cancellations	Medium	Medium	Medium
Expenses & Taxes	High	High	Low
Investment Returns	Medium	Medium	High

Read about the top whole life insurance companies in Canada

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Where does Manulife invest the participating account’s premiums?

Manulife invests the participating account’s funds in public bonds, real estate, public and private equities, mortgages, and private debt. This diversified portfolio helps generate steady long-term returns while maintaining stability for policyholders.

According to Manulife’s 2024 Sustainability Report, the company oversees $1.6 trillion in assets under management and administration, including $442 billion in total invested assets, $436 billion in segregated funds net assets, $334 billion in mutual funds, $223 billion in assets under administration, $154 billion in institutional asset management, and $19 billion in other funds. This scale and diversified asset mix help support consistent dividend performance and cushion short-term market volatility.

What dividend options does Manulife offer?

Dividends are a key feature of Manulife’s participating whole life insurance. They represent a share of the company’s financial performance and can enhance your long-term policy value. Manulife offers paid-up insurance, and cash that can be taken out or used for premium reduction. If you choose the paid-up insurance option, your annual dividends are used to automatically buy additional, fully paid-up insurance.

This means that once your dividends have been used to purchase additional coverage, you do not need to make any further premium payments for the paid-up insurance. If you choose the cash option as your dividend strategy, the annual dividends you receive are paid directly to you. In this case, there may be some tax liability.

How are Manulife’s whole life insurance dividends distributed?

Dividends are allocated to Manulife Par policyholders using a dividend scale. A dividend scale is a formula used by all insurance companies to fairly and equitably distribute the dividends among all the policy owners. The dividend scale is not guaranteed and usually increases or decreases based on the participating account’s performance.

Manulife’s dividend scale for the past three years has been:

Year	DSIR
2022	6.10%
2023	6.35%
2024	6.35%
2025	6.35%

Source: Manulife Sustainability Report, 2024

How to apply for Manulife whole life insurance with PolicyAdvisor?

To apply for a Manulife whole life insurance plan you would need to choose the plan type (Manulife Par or Manulife Par with Vitality PlusTM), choose your coverage options, fill in an application form, and submit. Your policy may also require medical underwriting based on your plan specifics.

For the best Manulife whole life quotes, speak to our experts at PolicyAdvisor. Our licensed advisors will help choose a plan and coverage options that best suit your needs and budget. We will also support you with the application, making the entire process seamless and easy for you!

Frequently asked questions

Is Manulife whole life insurance worth it?

Yes, Manulife’s whole life insurance helps build cash value and provide long-term protection at affordable rates. Their policies are designed to help build wealth with dividend options that can be used to either buy more insurance or policy owners can withdraw as cash. Manulife also offers exclusive benefits with their Vitality program, making their whole life insurance plans an ideal option for those looking for complete protection.

Can you borrow against the cash value?

Yes, you can request for a cash loan which is typically subject to Manulife’s administrative policies. The maximum amount you may borrow is 90% of the total available cash value minus any policy loans that you may have already taken. In some situations, Manulife may ask you to complete a loan agreement.

What happens if I stop paying premiums?

If you stop paying your premiums, Manulife gives you a 31 day grace period to pay the pending premiums. In case you do not do that your policy will lapse. You will lose your coverage and your cash value may be used to pay off your policy loans and other charges.

Does Manulife offer participating policies with dividends?

Yes, Manulife Par and Manulife Par with Vitality PlusTM, both offer participating whole life policies with dividends. Dividends can either be used to buy more insurance or they can be withdrawn as cash. In case policy owners choose to withdraw the dividends, there may be some tax implications.

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Equitable whole life insurance review (2026)

Equitable Life is one of Canada’s strongest mutual insurers, recognized for disciplined investment management, consistent dividend performance, and a clear focus on policyholder value.

The company’s 10-year average DSIR is approximately 6.24%, underscoring its reliability and competitive long-term cash value performance. In 2025, the company maintained a 6.40% dividend scale interest rate for its participating policies. This dividend scale rate remains unchanged from the previous year and is one of the highest among Canadian participating insurers, which may support steady cash value growth for policyholders.

In this review, we’ll explain how Equitable’s whole life insurance plans work, their key benefits, features, dividend performance, and why the company remains a top choice for Canadians looking to balance protection with long-term financial growth.

Best for mutual company

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Equimax Estate Builder
Equimax Wealth Accumulator

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

N/A

Dividend Scale Interest Rate (DSIR)

6.40%

PolicyAdvisor rating

Equitable whole life insurance earns a 5 out of 5 rating from PolicyAdvisor for its mutual ownership structure, competitive dividend scale, and long-term focus on policyholder value. As a Canadian mutual life insurer, Equitable distributes profits back to participating policyholders rather than external shareholders, reinforcing long-term stability and strong participating performance.

Equitable’s participating whole life policies share in the company’s profits through annual dividends. The Dividend Scale Interest Rate reflects the participating account’s investment performance and is used to help determine dividend payments, which are not guaranteed and are declared at the sole discretion of Equitable’s Board of Directors each year.

Equitable’s participating account highlights (2025–2026):

Estimated par block assets: $2.7 billion (largest Canadian mutual)
Dividend scale interest rate (DSIR): 6.40%
Par policyholders: 312,000+
Expected dividends paid to policyholders: ~ $175 million
Par business history: 102 years with uninterrupted participating business
Dividend on deposit interest rate: 3.50%
Policy loan interest rate: ~ 6.50% for most Equimax policies with qualifying policy numbers
Dividends are not guaranteed and vary based on investment performance, mortality experience, expenses, and other participating account factors

Age (in years)

Gender

Smoker

Yes

Monthly Contribution Budget

Equitable offers two participating whole life plan options under the Equimax product line:

Equimax Estate Builder®: Designed for long-term value and legacy goals
Equimax Wealth Accumulator®: Designed for earlier cash value accumulation and financial flexibility

Equitable participating policies offer multiple premium payment options, including lifelong premiums, 20-pay, and 10-pay structures, giving policyholders flexibility to match their financial planning needs.

Rating methodology

PolicyAdvisor rates Equitable whole life insurance 5/5 based on factors similar to those used for other participating products including mutual company advantages, dividend scale stability, long-term cash-value performance, premium payment flexibility, participating account strength, and available riders.

	2022	2023	2024	2025
Equitable	6.05%	6.25%	6.40%	6.40%
Manulife	6.10%	6.35%	6.35%	6.35%
iA Financial Group	5.75%	6.00%	6.25%	6.35%
Desjardins Insurance	5.75%	6.20%	6.30%	6.30%
RBC Insurance	6.00%	6.00%	6.25%	6.30%
Sun Life	6.00%	6.00%	6.25%	6.25%
Empire Life	6.00%	6.00%	6.00%	6.25%
Foresters Financial	5.50%	5.50%	5.50%	6.25%
Co-operators	5.90%	5.90%	6.00%	6.00%
Assumption Life	5.75%	5.75%	5.75%	5.75%
Canada Life	5.25%	5.50%	5.50%	5.75%

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What are the key features of Equitable’s whole life insurance?

Equitable offers participating whole life insurance for individuals looking to safeguard their financial future. These insurance options can be availed by individuals within 80 years of age and have a minimum coverage range of $10,000 (for single policies). Policy loans and dividends are available in Equitable’s whole life insurance, with varying degrees of tax advantage. Find out more below:

Key features of Equitable whole life insurance

Category	Details
Policy type	Whole life insurance
Cash value accumulation	Available. Can be accessed after the first year of purchasing the policy
Maximum issue age	80 years
Coverage amount range	$10,000 to no maximum
Dividend options	Paid-up additions, enhanced protection, or paid in cash/held on deposit
Policy loan availability	Available
Tax benefits	Tax-advantaged growth of cash value
Payment options	Life pay, 10 years, and 20 years payment options available
Additional riders	Disability waiver of premium, critical illness, Excelerator Deposit Option (EDO)

Additional policyholder support (KIND program)

New Equimax participating whole life policies include Equitable’s built-in KIND program. It provides compassionate and snap advances, access to policy cash value in cases of severe disability, and bereavement counselling benefits.

What is Equimax by Equitable?

Equimax is Equitable Life’s flagship participating whole life insurance product, designed to provide lifelong protection while steadily building cash value. It combines guaranteed coverage and level premiums with the potential for long-term financial growth through annual participating dividends.

Equimax is available in two plan options tailored to different financial goals: Equimax Estate Builder®, ideal for long-term wealth transfer and legacy planning, and Equimax Wealth Accumulator®, suited for individuals or business owners seeking higher early cash values and financial flexibility.

How does Equimax’s participating whole life insurance work?

Equitable Life’s Equimax participating whole life insurance combines guaranteed lifelong protection with long-term growth through dividends. It’s designed for clients who want both security and a financial asset that builds value over time.

Here’s how the plan works:

Permanent life insurance coverage: This type of policy provides lifetime protection with guaranteed premiums and death benefits, ensuring stability for estate and wealth transfer goals
Guaranteed cash value: Equitable whole life builds cash value over time within the policy. Wealth Accumulator begins accumulating cash value early, while Estate Builder focuses on stronger long-term growth
Participating policy and dividends: As a participating plan, Equimax is eligible to receive annual dividends based on the performance of Equitable Life’s participating account, which reflects factors like investment returns, expenses, and mortality experience
Dividend options: Policyholders can choose how to use their dividends, receive them in cash, keep them on deposit to earn interest, buy paid-up additions (PUAs) for more coverage, or apply them to reduce premiums. The Enhanced Protection Option, available only at issue, combines PUAs with a one-year term addition for extra coverage flexibility
Premium payment choices: Equitable offers flexible payment schedules-10 Pay, 20 Pay, or Pay to Age 100. Once the payment period ends, coverage remains in force for life
Access to cash value: Policyholders can access built-up cash values through loans or withdrawals. Cash value can also serve as collateral for financing needs, though such actions may affect future dividends or death benefits
Mutual company advantage: As a mutual insurer, Equitable Life operates without shareholders, meaning participating policyholders share in the company’s long-term success through dividends and stable account management

What are the different Equitable whole life insurance plans to choose from?

Equitable Life offers two participating whole life insurance plans under its Equimax product line, Equimax Estate Builder and Equimax Wealth Accumulator. Both plans offer lifetime coverage and the opportunity to build guaranteed cash values, but they cater to different financial goals.

Equimax Estate Builder is designed for clients focused on long-term value, estate planning, and wealth transfer. It provides higher death benefits and steady cash value growth, making it ideal for individuals who want to leave a lasting financial legacy or support charitable giving
Equimax Wealth Accumulator offers stronger early cash value growth and greater liquidity in the initial years. It’s suited for clients or business owners who may need access to cash value earlier for opportunities like funding education, buying property, or investing in a business

Key differences between Equimax Estate Builder and Equimax Wealth Accumulator

Category	Equimax Estate Builder®	Equimax Wealth Accumulator®
Primary focus	Designed for long-term estate planning, wealth transfer, and legacy growth	Focused on higher early cash values and short-to-medium-term liquidity
Ideal for	Individuals and families aiming to grow and transfer wealth tax-efficiently	Business owners or professionals who value early access to cash within 20 years
Cash value growth	Moderate in early years, strong long-term accumulation	Higher early cash values, with slightly lower long-term accumulation
Death benefit growth	Higher long-term death benefit to offset estate or capital gains taxes	Moderate death benefit growth, emphasizing cash accessibility
Dividend options	Dividends can be received in cash, on deposit, or used to purchase paid-up additions (PUAs)	Dividends can be received in cash, on deposit, or used to purchase paid-up additions (PUAs)
Premium payment options	Available as 10 Pay, 20 Pay, or Pay to Age 100	Available as 10 Pay, 20 Pay, or Pay to Age 100
Liquidity and collateral use	Strong long-term value, typically used for estate purposes or future borrowing	High early cash values make it well-suited for collateral loans or funding business opportunities
Child or grandchild coverage	Ideal for lifelong coverage with gradual value growth for education or inheritance	Offers earlier access to cash values for education or financial milestones
Charitable giving	Well-suited for estate donations or legacy philanthropy	Allows more flexibility for lifetime charitable contributions
Business protection	Works well for long-term shareholder or key-person protection with stable growth	Better for businesses that prioritize early liquidity and short-term funding options
Coverage availability	Available as Single Life, Joint First-to-Die, or Joint Last-to-Die	Available as Single Life, Joint First-to-Die, or Joint Last-to-Die
Minimum sum insured	$10,000 (child) or $50,000 (adult)	$10,000 (child) or $50,000 (adult)
Maximum sum insured	Up to $25,000,000 total Equimax coverage	Up to $25,000,000 total Equimax coverage

Equitable Life whole life insurance costs and value

This example shows the projected premiums, cash value growth, and death benefit for a 30-year-old non-smoker female purchasing $100,000 of Equitable Life whole life coverage with life pay and enhanced paid-up additions.

Projected premiums, cash value, and death benefit over time

Policy Year	Age	Annual premium paid	Total premiums paid	Total cash value	Death benefit
0	30	$818.47	$818.47	$0.00	$100,000.00
10	40	$818.47	$8,184.70	$4,608.00	$100,000.00
20	50	$818.47	$16,369.40	$21,481.00	$100,000.00
30	60	$818.47	$24,554.10	$46,652.00	$118,700.00
40	70	$818.47	$32,738.80	$90,510.00	$163,023.00
50	80	$818.47	$40,923.50	$163,638.00	$228,448.00
55	85	$818.47	$45,015.85	$214,083.00	$272,181.00
60	90	$818.47	$49,108.20	$274,165.00	$323,796.00

What are the pros and cons of Equitable’s whole life insurance policy?

Equitable has several advantages, such as lucrative riders, availability for a collateral loan, multiple dividend payout options, and tax-free death benefits. However, there are some disadvantages, such as the non-availability of a non-participating whole life insurance option, higher premium costs, and slow cash value growth during the initial days of the Equitable Estate Builder plan.

Pros and cons of Equitable whole life insurance

Pros	Cons
EquiLiving Critical Illness Rider provides a lump-sum payout for covered illnesses to cover medical costs or support recovery	This policy has higher premiums compared to term insurance, making it less accessible for tight budgets
Excelerator Deposit Option allows additional tax-deferred contributions to enhance the policy’s cash value growth	Equitable does not have a non-participating whole life insurance option to choose from
Variable dividend options provide flexibility to increase the death benefit, reduce premiums, earn interest, or receive cash	It is not ideal for short-term goals or individuals seeking immediate returns
Tax-advantaged growth offers long-term savings potential and typically tax-free death benefits for beneficiaries

Highlights of Equitable’s whole life insurance policy document

An Equitable Life whole life insurance policy document includes:

Policyholder and insured details: Names, ages and coverage start dates for the owner and insured
Coverage amount: The death benefit and any additional term or rider coverage selected
Payment and premium schedule: The chosen pay structure (10-pay, 20-pay or life pay), premium amount, billing frequency and premium guarantees
Dividend options: How dividends can be used, including paid-up additions, cash payout, enhanced protection, premium reduction or left on deposit
Guaranteed values: Tables showing guaranteed cash value and death benefit, along with illustrated non-guaranteed values based on the current dividend scale
Policy loans and withdrawals: Rules for borrowing or withdrawing from cash value, including limits and interest rates
Riders and living benefits: Available add-ons such as critical illness, term riders, accelerator deposit option and waiver of premium
Beneficiary designation: How to assign or update primary and contingent beneficiaries
Surrender and cancellation provisions: Steps to terminate the policy and access any guaranteed surrender value
Participating account disclosure: How dividends are generated and how the participating account operates
Legal and definitions: Key legal terms, exclusions, reinstatement rights and claim procedures

What are the different limited-pay options offered by Equitable?

Equitable Life offers three limited pay structures for its participating whole life insurance plans (Equimax Estate Builder and Equimax Wealth Accumulator):

10-pay: Premiums are paid for 10 years. Once the payment period ends, the policy is fully paid up and lifelong coverage continues with no further premiums
20-pay: Premiums are paid for 20 years, after which the policy is fully paid up for life
Life pay: Premiums are paid for life or until age 100, depending on the contract. This option usually offers lower annual premiums than 10-pay or 20-pay plans

Why should you purchase Equitable Life whole life insurance for children?

By purchasing Equitable’s whole life insurance policies for your child or grandchild, you’re giving them more than just lifelong coverage;, you’re setting the foundation for their financial future. Equitable Life whole life insurance for children offers permanent coverage at children’s rates, with paid-up options in 10 or 20 years.

It provides tax-advantaged cash value growth, offering financial flexibility through loans or withdrawals for future needs. Also, ownership can transfer tax-free to the child upon adulthood, securing their financial foundation.

For example, if you buy a 20-pay whole life insurance for a 5-year-old child at an annual premium of $1,200, the policy’s value will continue to grow without any further premium payments after the first 20 years.

By simply paying $100 a month, parents can now secure the financial future of their children, ensuring they have enough coverage to fund important life events as well as emergencies and can also leave a fortune behind for their future generations.

Equitable whole life insurance review 2025

How can you pay for Equitable whole life insurance?

Equitable Life provides three main payment options for its Equimax whole life insurance policies: Life Pay, 10 Pay, and 20 Pay. Each of these payment options can be beneficial to different individuals based on their unique situations.

Life Pay: This option requires premiums to be paid throughout the policyholder’s lifetime or until death. It’s designed for those who prefer lower annual payments spread over a longer period
10 Pay: In this scenario, the premiums are paid for only 10 years, after which the policy is fully paid up. This option is ideal for individuals who want to secure lifelong coverage quickly and have the financial resources to afford higher annual payments
20 Pay: This option allows policyholders to complete premium payments over 20 years. It balances affordability and early completion, making it suitable for those who want to avoid lifetime payments but prefer a payment period longer than 10 years

Does Equimax help with tax payouts during death?

Yes, Equimax Estate Builder whole life plan can help with tax payouts upon death. This specific plan is designed to provide a larger death benefit, which can be used to offset estate taxes and other final expenses.

The death benefit is typically paid out tax-free to beneficiaries, providing them with the funds needed to settle the estate without the burden of additional tax liabilities.

The Equimax Estate Builder whole life plan provides a death benefit that can be used to:

Cover estate taxes: The death benefit can help beneficiaries pay for estate taxes, ensuring the full value of the estate is passed on without forcing them to liquidate assets
Leave a legacy behind: The policy ensures that the financial legacy you leave behind remains intact, allowing your beneficiaries to inherit more

How are whole life insurance dividends determined by Equitable?

Equitable Life’s whole life insurance dividends are determined by the performance of its participating (PAR) account. The financial performance of PAR accounts can depend on factors like investment returns, mortality payouts, premium lapses, and tax obligations.

Strong investment performance, fewer claims, and lower premiums lapsing can lead to higher dividends, while the opposite may result in lower payouts.

Dividends are paid at the sole discretion of Equitable Life’s board of directors. As such, dividends can vary from year to year depending on the insurer’s performance. The decision to distribute dividends is made with the aim of ensuring steady, predictable returns while minimizing volatility.

Equitable Life Dividend Scale Interest Rate (DSIR): 2020–2025

Year	DSIR

2025	6.40%
2024	6.40%
2023	6.25%
2022	6.05%
2021	6.05%
2020	6.20%

Now, let’s take a look at the average dividend scale returns by Equitable’s participating accounts and interest rates over the last 30 years:

Equitable Life dividend scale over 30 years

Timeframe	Equitable PAR account return	Equitable dividend scale interest rate
5 years	6.52%	6.15%
10 years	6.26%	6.37%
20 years	6.79%	6.95%
30 years	7.35%	7.72%
Standard deviation over 30 years	1.79%	1.31%

Source: Equitable dividend scale interest rate, 2024

Learn more about the cost of whole life insurance in Canada

Which Equitable whole life plan type is right for you?

Equitable’s Estate Builder and Wealth Accumulator plans are built to suit the diverse needs of policyholders. From long-term goals to immediate cash value accumulation, individuals can choose the right Equimax plan for them based on their individual needs.

Here’s how you can determine the right policy for yourself:

What to look for	Equimax Estate Builder	Equimax Wealth Accumulator
If you are looking for higher long term benefits for planning your estate	✓	✘
If you’re looking for a higher death benefit that can reduce tax burden for your next of kin during transfer of property	✓	✘
If you’re looking for affordable insurance coverage to secure the financial future of your children or grandchildren	✓	✓
If you’re looking to build immediate cash value to start a business	✓	✓
If you’re looking to make philanthropic donations but also reduce your tax implications now and in the future	✓	✓
If you’re looking to create a steady retirement fund	✓	✓
If you’re looking for quick access to higher cash value through a policy loan or collateral loan	✘	✓

Find out about the best whole life insurance companies in Canada

What are the various dividend options on an Equimax whole life insurance plan?

Equitable’s participating whole life insurance has several dividend options to choose from, including cash payout, premium reduction, paid-up additions, on-deposit, and enhanced protection.

Paid in cash: Dividends are paid directly to the policyholder each year
Best for: Clients who want annual income or flexibility rather than reinvestment
Premium reduction: Dividends reduce future premiums, lowering out-of-pocket costs while keeping coverage intact
Best for: Clients seeking immediate savings and simplicity
On deposit: Dividends are held in an interest-bearing account with Equitable Life and can be withdrawn anytime
Best for: Clients who prefer liquidity and guaranteed interest growth
Paid-Up Additions (PUA): Dividends buy additional permanent coverage that grows cash value and death benefit tax-deferred
Best for: Clients focused on long-term accumulation and estate enhancement
Enhanced protection: Combines base permanent coverage with a one-year renewable term (OYT) layer. Dividends first pay OYT costs; any remainder buys PUAs that gradually replace the term layer
Best for: Clients who want higher early coverage, faster growth, and stronger estate value

What is the living benefit offered by Equimax whole life insurance?

The living benefit offered by Equimax whole life insurance allows policyholders to access a portion of their policy’s cash value if the life insured becomes severely disabled due to a physical or mental impairment.

This benefit can be applied once per policy year and is subject to Equitable Life’s administrative guidelines. Any payment made under the Living Benefit will reduce the policy’s death benefit.

Individuals suffering from life-threatening conditions such as cancer, AIDS, coronary artery disease, myocardial infarction, chronic kidney or liver failure, Alzheimer’s disease, etc, can be eligible to receive Living Benefits under their whole life insurance policy. Also, the insured individual must have been impaired for a period of 90 days significantly affecting their day-to-day life, and their ability to continue employment.

What are the additional riders available with Equitable’s Equimax whole life insurance?

Whole life insurance by Equitable has customization options along with various riders such as critical illness, additional term life insurance, disability waiver, and more. Insured individuals can choose from these options to further enhance their chances for a higher payout in case of severe illness or disability.

Disability waiver of premium rider: Waives premiums if the policyholder becomes disabled, ensuring continued coverage without financial strain
Term life insurance rider: Available only with single policies, this allows you to add term life insurance coverage to your whole life policy, providing additional protection within a single plan
EquiLiving critical illness rider: Offers financial protection in the event of a severe illness, allowing you to access benefits for medical or living expenses
Excelerator Deposit Option (EDO): Enables you to make lump-sum contributions to your policy, boosting its cash value and increasing your death benefit

Explore the differences between universal and whole life insurance to make an informed choice

How to get the best whole life insurance quotes in Canada?

When it comes to finding the best whole life insurance quotes in Canada, you have a few options. You could spend hours browsing different websites and comparing policies on your own, but that can quickly become overwhelming and time-consuming. This is where PolicyAdvisor comes in!

What sets PolicyAdvisor apart is not just the competitive pricing and multiple options to choose from, but also the lifetime after-sales support. After you’ve secured your policy, you’re not left on your own. Our team of expert advisors is always available to help with any questions or adjustments you need, ensuring you have ongoing support every step of the way. It’s a stress-free way to get the best coverage while knowing you’re always taken care of, now and in the future.

Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.

SCHEDULE A CALL

Frequently asked questions

Can I transfer ownership of my Equitable whole life insurance policy to my children or grandchildren?

Yes, Equitable allows you to transfer ownership of your whole life insurance policy to your children or grandchildren when they reach the age of majority.

This is a great way to start building generational wealth, as they can access the policy’s cash value for future expenses such as education or a down payment on a house.

Can I add extra coverage to my Equitable whole life insurance policy in the future?

Yes, Equitable offers various options to increase your coverage over time. With features like paid-up additions, you can use dividends to purchase additional life insurance, increasing your death benefit and cash value. This flexibility allows you to tailor your policy as your life circumstances evolve, ensuring that you always have the coverage you need.

What happens to my Equitable whole life policy if I stop making premium payments?

If you stop making premium payments on your Equitable whole life policy, it won’t necessarily lapse immediately. The policy’s cash value can be used to cover the premiums for a period of time, depending on how much cash value you’ve accumulated. However, once the cash value is exhausted, your coverage may likely end. It’s important to keep track of your policy’s status from time to time.

Can a person with pre-existing conditions be eligible for the Living Benefit of a whole life insurance policy?

No, a person with pre-existing conditions may not be eligible for the Living Benefit under Equitable’s whole life insurance policy if the condition existed at the time the policy was first issued or at the date of the last reinstatement.

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Best whole life insurance companies in Canada (2026)

Choosing from the best whole life insurance companies in Canada feels overwhelming; there are dozens of insurers, each claiming strong performance and long-term value.

Dozens of insurers offer participating policies, each promising strong dividends, long-term cash value growth, and flexible coverage options.

To identify the best whole life insurance companies in Canada for 2026, our team reviewed financial strength, dividend performance, cash value growth, product flexibility, and customer experience.

Based on our review, the following five companies stand out for their combination of strong performance and flexible plans, with the remaining providers covered later in our full comparison.

Top 5 whole life insurance companies in Canada (2026)

Equitable Life: Mutual company
Manulife: Overall performance
Empire Life: Balanced performance
Sun Life: High-net-worth individuals
Foresters: Coverage for smokers

What is whole life insurance?

A whole life insurance policy is a type of permanent life insurance that provides lifelong coverage. It offers a guaranteed, tax-free death benefit and includes a built-in investment component that grows cash value over time. With a participating whole life policy, you receive dividends, although the amount is not guaranteed.

Most people choose whole life insurance in Canada to support estate planning, cover capital gains taxes at death, and leave a tax-free inheritance, while also handling final expenses and probate fees.

Learn about whole life insurance

Age (in years)

Gender

Smoker

Yes

Coverage Amount

How does whole life insurance work?

Whole life insurance provides coverage for life, cash value component, optional dividends on par plans, and access to funds via loans/withdrawals. Dividends are not guaranteed and past performance doesn’t predict future results. Here’s how whole life insurance works.

Lifetime coverage: You’re covered for life as long as premiums , and your beneficiaries receive a guaranteed tax-free death benefit
Cash value growth: Part of each premium goes into a cash value account that grows tax-deferred and becomes a long-term asset you can use for education costs, emergencies, or retirement income
Access to funds: You can access the accumulated cash value through policy loans or withdrawals for added financial flexibility, such as covering emergencies, education, or retirement income
Dividends : Some participating policies pay dividends you can use to reduce premiums, buy more coverage, or take as cash
Financial security: The policy provides stable long-term protection, covering final expenses and supporting your family with guaranteed benefits

The best whole life insurance companies in Canada

Our team reviewed leading Canadian insurers based on financial strength, dividend history, cash value growth, and underwriting to determine the best whole life insurance companies across different needs and profiles.

15 best whole life insurance companies in Canada

Equitable Life: Mutual company
Manulife: Overall performance
Empire Life: Balanced performance
Sun Life: High-net-worth individuals
Foresters: Smokers
BMO Insurance: Non-participating plans
Canada Life: Charitable giving
Canada Protection Plan: Non-medical
Desjardins: Early and flexible pay-off
iA (Industrial Alliance): Health accommodation
RBC Insurance: Children’s plans
Assumption Life: Quick-issue
Beneva: Complimentary built-in features
UV Insurance: Long-term growth
Wawanesa: Guaranteed benefits

Let’s take a closer look at what makes these whole life insurance companies among the best in Canada.

Best Whole Life Insurance in Canada 2026

1. Equitable Life: Best for mutual company

Best for mutual company

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Equimax Estate Builder
Equimax Wealth Accumulator

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

N/A

Dividend Scale Interest Rate (DSIR)

6.40%

PolicyAdvisor Rating

We give Equitable Life 5/5 because it stands out as one of Canada’s strongest whole life providers, particularly for Canadians who value the long-term security of a true mutual company.

The company supports its participating plans, Equimax Estate Builder and Equimax Wealth Accumulator, with a growing $2.73 billion par fund, demonstrating its financial strength and commitment to stable, long-term results. Both plans offer 10-pay, 20-pay, and pay to 100 options.

Equimax Wealth Accumulator is built for earlier cash value access, making it ideal for clients who want flexible liquidity for education, business needs, or retirement planning. Conversely, Equimax Estate Builder emphasizes long-term value and supports estate planning by helping cover taxes and fees at death.

New Equimax participating whole life policies include Equitable’s built-in KIND program. It provides compassionate and snap advances, access to policy cash value in cases of severe disability, and bereavement counselling benefits.

Equitable Life’s key financial strengths:

$2.73 billion participating fund
6.40% dividend scale interest rate
Dividend rate above 6% for more than 12 years
30-year average return of 7.59%
Exceptionally low 1.25% standard deviation over 30 years, one of the most stable in Canada
Par fund asset mix: 49% fixed income, 38% non-fixed income, 2% cash, 11% policy loans
Long-term smoothing approach that reduces market volatility and supports consistent dividend results

Why choose Equitable Life

Delivers extremely stable long-term returns and minimizes volatility
Strengthens long-term growth through a highly diversified par-fund portfolio
Directs profits back to policyholders through its mutual ownership structure
Achieves strong investment performance through disciplined, conservative par-fund management

Unique selling point (USP): Equimax Estate Builder and Equimax Wealth Accumulator suit Canadians who want stable long-term value, reliable dividends, and accessible cash value backed by a trusted mutual insurer.

Cash Accumulation

Equimax Estate Builder: Slower early growth; strong long-term value

Equimax Wealth Accumulator: Faster early growth; accessible earlier

Dividend Options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

2. Manulife: Best for overall performance

Best for overall performance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Manulife Par
Manulife Par with Vitality Plus
Performax Gold

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

A+

Dividend Scale Interest Rate (DSIR)

6.35%

PolicyAdvisor Rating

We give Manulife 5/5 for being the top choice for Canadians seeking whole life insurance backed by exceptional capital strength, global diversification, and advanced risk management

Manulife Par, Manulife Par with Vitality Plus, and Performax Gold plans provide lifetime coverage with 10-pay, 20-pay, and pay to 100 options. A $15.98 billion participating account backs the plans, supporting long-term guarantees, stable dividends, and reliable performance for policyholders.

Manulife Par focuses on stable long-term growth with guaranteed premiums, immediate cash value buildup, and annual dividend payouts. Manulife Par with Vitality Plus offers strong early guaranteed cash values while also providing access to the Manulife Vitality program, which rewards healthy living with perks and member benefits. Program features vary by eligibility and do not reduce premiums for participating whole life. Performax Gold provides additional flexibility for clients seeking a blend of guaranteed protection and dividend-driven long-term value.

Manulife’s key financial strengths and performance:

$15.98 billion participating account
6.35% dividend scale interest rate
138% LICAT ratio, among the highest capital strength levels in Canada
Diversified global operations across Canada, the U.S., Asia, and global asset management
Strong balance sheet supported by investment-grade assets
Disciplined risk-management framework that supports long-term financial stability

Why choose Manulife

Maintains exceptionally strong capitalization that supports long-term dividend stability
Reduces performance volatility through global geographic and asset diversification
Generates consistent profitability through strong core earnings and disciplined risk management
Enhances sustainability through advanced underwriting analytics and the Vitality program

Unique selling point (USP): Manulife Par, Manulife Par with Vitality Plus, and Performax Gold are ideal for Canadians who want affordable lifetime coverage with flexible payment terms, and steady cash value.

Cash Accumulation

Manulife Par: Cash value starts after 1 year

Manulife Par with Vitality Plus: Cash value starts after 1 year; includes Vitality benefits

Performax Gold: Cash value starts after 5 years (slower early buildup)

Dividend Options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

3. Empire Life: Best for balanced performance

Best for balanced performance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

EstateMax
Optimax Wealth

Payment options

8-pay
10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

Dividend Scale Interest Rate (DSIR)

6.25%

PolicyAdvisor Rating

We give Empire Life 4.5/5 because its whole life plans offer balanced, steady performance, making it a top choice for Canadians seeking reliable long-term value. The company backs its participating plans, EstateMax and Optimax Wealth, with a disciplined $1.21 billion par fund renowned for stability and long-term results.

EstateMax is built for conservative estate growth, offering steady dividend performance and strong long-term accumulation. In comparison, Optimax Wealth provides smoother, more predictable cash value growth over time, giving policyholders reliable access to liquidity while maintaining long-term security. EstateMax is available with 20-pay and pay to 100 premium options. Optimax Wealth offers flexible payment structures, including 10-pay, 20-pay, and pay to 100. Empire Life also offers Solution Series, a non-participating plan with a 10-pay option.

Empire Life’s key financial strengths:

$1.21 billion participating fund with a stability-focused investment approach
6.25% dividend rate
Dividend history above 6% for more than 10 years
30-year average return of 6.97%
Par fund asset mix: 64% bonds, 29% equities, 7% cash/other
Long-duration bond structure with smoothing to reduce volatility

Why choose Empire Life:

Delivers stable long-term value growth and reduces volatility
Maintains reliable dividend performance that supports confident planning
Builds strong cash value and provides access to liquidity over time
Supports conservative estate planning and predictable long-term growth needs

Unique selling point (USP): EstateMax and Optimax Wealth are ideal for Canadians seeking stable cash accumulation and steady dividend performance.

Cash Accumulation

EstateMax: Steady long-term growth

Optimax Wealth: High early cash values

Dividend Options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

4. Sun Life: Best for high-net-worth individuals

Best for high-net-worth individuals

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Sun Par Protector II
Sun Par Accumulator II
Sun Par Accelerator
SunSpectrum Permanent Life II

Payment options

8-pay
10-pay
15-pay
20-pay
pay-to-100

A.M. Best financial strength rating

A+

Dividend Scale Interest Rate (DSIR)

6.25%

PolicyAdvisor Rating

We give Sun Life 4.5/5 for being a leading choice for high-net-worth Canadians who want whole life insurance backed by exceptional global diversification and long-term financial strength. Sun Life backs its Par Protector II, Par Accumulator II, and Par Accelerator with a $21.2 billion par fund. This fund supports more than 400,000 active participating policies, making it one of the strongest par structures in Canada.

The Protector II and Accumulator II provide flexible payment options, including 10-pay, 15-pay, 20-pay, and pay-to-age-100, while the Sun Par Accelerator comes with a 8-pay premium option that is fully paid in just eight years. Accumulator II emphasizes early cash-value growth, allowing easier access to funds for investments, business needs, or other financial goals through policy loans or withdrawals. Meanwhile, Protector II focuses on maximizing long-term death benefits for estate and legacy planning. Accelerator builds cash value quickly, giving policyholders faster access to funds.

For those preferring non-participating plans, SunSpectrum Permanent Life II also offers 10-pay, 20-pay, and pay to 100 payment structures.

Sun Life’s key financial strength

$21.2 billion participating account
6.25% dividend scale interest rate
154% LICAT ratio, one of the strongest among major Canadian insurers
Global earnings diversification across Canada, the U.S., Asia, and asset-management operations
Consistent profitability supported by strong insurance and wealth-management businesses

Why choose Sun Life

Strengthens long-term performance through global diversification and multi-market earnings stability
Supports long-term guarantees with exceptional capital strength and a 154% LICAT ratio
Offers flexibility through multiple par product designs, including estate, accumulation, and 8-pay options
Provides scalable planning advantages for affluent and corporate clients seeking tax-efficient wealth transfer and surplus management

Unique selling point (USP): Sun Par Protector II, Sun Par Accumulator II, and Sun Par Accelerator suit Canadians who want lifetime protection paired with strong cash-value potential and effective estate planning.

Cash Accumulation

Sun Par Protector II: Cash value starts after 5 years

Sun Par Accumulator II: Cash value starts after 1 year

Dividend Options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

5. Foresters Financial: Best for smokers

Best for smokers

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Advantage Plus II
Non-Par Whole Life

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

Dividend Scale Interest Rate (DSIR)

6.25%

PolicyAdvisor Rating

We give Foresters Financial 4/5 for being a top choice for smokers and former smokers, who need more flexible underwriting. The insurer leverages a strong Canadian capital position, including a Life Insurance Capital Adequacy Test (LICAT) ratio of 182% and $2.1 billion in surplus. This robust financial strength enables Foresters to accept higher-risk applicants while actively maintaining dependable long-term guarantees and stable dividends.

Advantage Plus II offers early cash value accessibility, dependable long-term guarantees, and dividend-driven growth, making it an attractive option for Canadians who may face stricter underwriting at larger insurers. Foresters Non-Par Whole Life offers guaranteed cash value.

Foresters’ key financial strengths:

$2.1 billion in surplus / net assets supporting long-term claims and guarantees
182% LICAT ratio, demonstrating excellent capital adequacy
Member-owned structure where profits support policyholders rather than shareholders

Why choose Foresters:

Offers flexible underwriting for smokers and former smokers
Maintains strong financial resilience with a 182% LICAT ratio and $2.1 billion surplus
Operates a member-first fraternal model that directs value back to policyholders
Provides additional member benefits including wellness rewards, scholarships, community grants, and family support programs

Unique selling point (USP): Advantage Plus II is an attractive option for Canadians who may face stricter underwriting at larger insurers.

Cash Accumulation

Advantage Plus II: Cash value starts after 1 year

Foresters Non-Par Whole Life: Guaranteed cash values; slower growth

Dividend Options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

6. BMO: Best for non-participating whole life insurance

Best for non-participating whole life insurance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Estate Protector
Wealth Accelerator

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

Performance bonus rate

5.75%

PolicyAdvisor Rating

We give BMO 4/5 because its non-participating whole life plans make it a reliable choice for Canadians seeking guaranteed values, predictable premiums, and no dividend-related volatility. The company offers two plan options, Estate Protector and Wealth Accelerator, both of which exclude a participating account or dividends. These plans set themselves apart with a Performance Bonus (5.75%), increasing both the death benefit and cash value without relying on traditional dividends. BMO supports its policies with a robust insurance net income of $95 million.

Estate Protector is designed for long-term estate planning, offering strong guaranteed cash value growth and a steadily increasing death benefit to help preserve wealth and offset taxes at death (e.g., deemed disposition and probate fees). Wealth Accelerator provides faster guaranteed cash value accumulation and higher early liquidity, making it an attractive option for business owners and high-income earners who want accessible long-term value. Both plans are available with 10-pay, 20-pay, and pay to 100 premium options.

BMO’s key financial strengths

$95 million net insurance income
5.75% Performance Bonus Rate used to enhance non-participating whole life policy values (not a DSIR and not guaranteed)
Operates within BMO Wealth Management, supported by diversified earnings and enterprise-wide risk management

Why choose BMO

Supports long-term financial stability by consistently growing insurance profitability
Strengthens guaranteed policy values through a competitive 5.75% performance bonus rate
Enhances stability through diversified revenue sources and favorable business performance
Benefits from operational scale and strong risk oversight within BMO’s wealth-management platform

Unique selling point (USP): Estate Protector and Wealth Accelerator are ideal for Canadians who want lifetime coverage with guaranteed values, predictable performance, and payment flexibility.

Cash Accumulation

Estate Protector: Strong guaranteed cash values; long-term estate growth

Wealth Accelerator: Faster liquidity; quicker cash value access

Dividend Options

Not available. BMO offers a performance bonus that is used to buy additional paid-up insurance coverage (Paid-up additions)

7. Canada Life: Best for charitable giving

Best for charitable giving

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Estate Select
Wealth Select
My Par Gift

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

A+

Dividend Scale Interest Rate (DSIR)

5.75%

PolicyAdvisor Rating

We give Canada Life 4/5 because it is a leading choice for Canadians who want to use whole life insurance to support charitable giving. Its My Par Gift plan is specifically designed for charitable contributions, with a single premium and cash value starting from year 1.

Canada Life’s participating lineup, Estate Select, Wealth Select, and My Par Gift, is backed by one of the largest and most stable participating accounts in the country. It’s anchored by a $61.9 billion par fund, the largest in Canada. The company also has about 1.4 million participating life insurance policies in force.

Estate Select focuses on long-term growth, helping maximize the death benefit for estate planning. Wealth Select, on the hand, is designed for earlier cash value access, allowing for withdrawals or policy loans when needed. Both plans come with flexible payment options, including 10-pay, 20-pay, and pay to 100.

Canada Life’s key financial strengths

$61.9 billion participating account, the largest par fund in Canada
5.75% Dividend Scale Interest Rate, supporting long-term dividend stability
Disciplined investment governance, guided by formal policies that address liability matching, liquidity needs, tax considerations, and interest-rate risk
Strong asset-liability management (ALM) using cash-flow matching to ensure long-term obligations to policyholders are met
Diversified asset mix with 60.0% fixed income and 30.7% non-fixed income (real estate, public equity, private equity)

Why choose Canada Life

Delivers exceptional long-term stability through Canada’s largest par fund ($59.2B) and deep diversification
Supports resilient investment performance using a balanced asset mix designed to generate stable returns across market cycles
Reduces volatility through disciplined ALM and cash-flow matching practices that protect DSIR sustainability
Preserves long-term policyholder value with strict investment parameters and governance oversight

Unique selling point (USP): My Par Gift suits Canadians who want charitable giving with single-premium simplicity.

Cash Accumulation

Estate Select: Cash value starts in year 1, with a focus on long-term growth and maximizing the death benefit for estate planning

Wealth Select: Cash value starts in year 1, with earlier cash value access through withdrawals or policy loans

My Par Gift: Cash value builds over time, with access for the charity through withdrawals or policy loans

Dividend Options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

8. Canada Protection Plan: Best for non-medical whole life insurance

Best for non-medical whole life insurance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Express Elite
Simplified Elite
Guaranteed Acceptance Life
Deferred Life

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

N/A

Dividend Scale Interest Rate (DSIR)

N/A

PolicyAdvisor Rating

We give Canada Protection Plan (CPP) 4/5 for being a leading choice for Canadians who want whole life insurance without medical exams, offering fast approvals and guaranteed lifetime coverage. Its non-participating whole life lineup, Express Elite, Simplified Elite, Guaranteed Acceptance Life, and Deferred Life, provides predictable premiums, stable cash values, and simplified underwriting for applicants with various health profiles. As part of Foresters Financial, Canada Protection Plan is backed by a Life Insurance Capital Adequacy Test (LICAT) ratio of 182% and consolidated surplus of $2.1 billion, giving policyholders confidence in the company’s long-term financial strength and the security of their coverage.

Canada Protection Plan’s key financial strengths:

Backed by Foresters Financial, benefiting from a 182% LICAT ratio and $2.1 billion in consolidated surplus that supports long-term guarantees
$630 million in claims paid, demonstrating strong and reliable claims fulfillment
Member-focused structure, reinvesting surplus into member programs, scholarships, and community support

Why choose Canada Protection Plan

Delivers leading access to coverage as Canada’s largest provider of no-medical life insurance
Approves a wide range of health profiles, serving smokers, chronic-condition applicants, and higher-risk clients
Provides predictable long-term costs through fully guaranteed non-participating plans with no dividend risk
Supports applicants who were previously declined, offering strong impaired-risk options
Expands accessibility with higher maximum issue ages and a Quit Smoking incentive
Simplifies the process with fast approvals, e-signatures, and a digital application system

Unique selling point (USP): An ideal choice for Canadians who want whole life insurance without medical exams, offering fast approvals and guaranteed lifetime coverage.

Cash Accumulation

Guaranteed Acceptance Life: Cash values begin after policy year 5

Deferred Life: Cash values begin after policy year 5

Deferred Elite Life: Cash values begin after policy year 5

Simplified Elite Life: Cash values begin after policy year 5

Preferred Life: Cash values begin after policy year 5

Preferred Elite Life: Cash values begin after policy year 5

Dividend Options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

9. Desjardins: Best for early and flexible pay-off

Best for early and flexible pay-off

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

5-Pay PAR
Estate Enhancer
Accelerated Growth

Payment options

5-pay
10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

N/A

Dividend Scale Interest Rate (DSIR)

6.30%

PolicyAdvisor Rating

We give Desjardins 4/5 because it is a top choice for Canadians who want to pay off their whole life premiums early, combining a rare 5-pay participating option with the more standard 10-pay, 20-pay, pay to 100 structures across its par lines.

The company backs its participating lineup with one of the strongest capital positions in Canada, maintaining a Tier 1A capital ratio of 23.1%.

The flagship 5-Pay PAR plan completes premiums in just five years while still building strong early cash values. Desjardins serves around 5 million insurance policyholders across its life and health portfolio.

Its participating lineup includes three plans: 5-Pay PAR, Estate Enhancer, and Accelerated Growth. Estate Enhancer focuses on long-term estate value and strong future growth, while Accelerated Growth prioritizes earlier cash value access with long-term accumulation potential.

Desjardins’ key financial strengths and performance

6.30% Dividend Scale Interest Rate (DSIR)
$1.115 billion in surplus earnings, demonstrating strong overall performance
$174 million surplus earnings from Wealth Management and Life & Health Insurance, confirming insurance profitability
23.1% Tier 1A capital ratio, significantly above regulatory requirements and one of the strongest in the industry
Co-operative ownership model, where profits are reinvested into member value rather than shareholder returns

Why choose Desjardins

- Offers one of the only 5-pay participating whole life plans in Canada, delivering fast paid-up coverage and strong early cash values
- Reinvests profits to support members, improving long-term stability through a cooperative structure instead of shareholder pressure
- Strengthens par performance durability with exceptionally strong capital ratios that safeguard dividend stability
- Grows underlying insurance performance, supported by rising surplus earnings and expanding wealth operations
- Provides flexible par product options, including fast-pay and long-term accumulation designs

Unique selling point (USP): Desjardins’ 5-Pay PAR plan delivers full coverage in five years while building early cash value, making it ideal for Canadians seeking fast, predictable, and long-term life insurance.

Cash Accumulation

5-Pay PAR: Steady long-term growth

Estate Enhancer: Steady long-term growth

Accelerated Growth: Fastest access to cash value during the first 10 to 15 years of the policy

Dividend Options

5-Pay PAR: Enhanced insurance

Estate Enhancer and Accelerated Growth: Paid-up additions (PUA), premium reduction, cash dividends, deposit at interest, enhanced coverage

10. Industrial Alliance (iA): Best for health accommodation

Best for health accommodation

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Child Life and Health Duo
iA PAR Estate
iA PAR Wealth
Life and Serenity 65

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

A+

Dividend Scale Interest Rate (DSIR)

6.35%

PolicyAdvisor Rating

We give Industrial Alliance (iA) 4/5 for being a leading choice for Canadians who need whole life insurance with more flexible underwriting, making it especially appealing for clients with health conditions or non-standard risk profiles.

iA offers Canadians whole life solutions for different needs: Child Life and Health Duo provides participating coverage with early protection and gradual long-term growth, while Life and Serenity 65 delivers non-participating coverage with disability and illness benefits, with cash values beginning in later policy years.

Additionally, iA PAR Estate and iA PAR Wealth are backed by a $69.36 million par account and offer flexible premium options, including 10-pay, 20-pay, and pay to 100. iA PAR Estate focuses on long-term growth of total surrender value and death benefit, while iA PAR Wealth prioritizes short-term growth by maximizing total cash surrender value in the early years, alongside long-term estate growth.

iA’s key financial strengths

$69.36 million par fund
6.35% dividend rate
13.0% return on equity (16.1% core ROE), demonstrating strong profitability and efficient capital deployment
132% solvency ratio, indicating strong capitalization and long-term financial stability
Diversified business model, generating momentum across Individual Insurance, Group Benefits, Wealth, and U.S. operations

Why choose iA

Delivers strong and growing earnings, contributions broadly across Individual Insurance, Wealth, Group, and U.S. operations
Supports reduced volatility with a highly diversified business model and multiple profit streams beyond life insurance
Demonstrates robust financial strength, boasting a 132% solvency ratio and strong organic capital generation that sustains long-term par stability
Leads market position, ranks number one in segregated fund sales and strong momentum in Individual Insurance
Consistently generates profitability, reflected in a 16.1% core ROE, demonstrating durable earning power for sustaining long-term guarantees
Strategically expands through acquisitions, which strengthens distribution and recurring revenue sources

Unique selling point (USP): iA PAR Estate and Wealth suit Canadians with health conditions who want flexible underwriting.

Cash Accumulation

Child Life and Health Duo: Gradual long-term growth with early lifetime protection

iA PAR Estate: Long-term cash value accumulation

iA PAR Wealth: Early access to cash value

Life and Serenity 65: Cash values begin in later policy years

Dividend Options

Paid-up additions (PUA), premium reduction, cash dividends, deposit with interest available for Child Life and Health Duo, iA PAR Estate, and iA PAR Wealth

11. RBC Insurance: Best for children’s plans

Best for children’s plans

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

RBC Growth Insurance
RBC Growth Insurance Plus

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

Dividend Scale Interest Rate (DSIR)

6.30%

PolicyAdvisor Rating

We give RBC Insurance 4/5 as the top choice in Canada, for families who want whole life insurance designed specifically to protect a child’s long-term future. RBC backs its participating plans, Growth Insurance and Growth Insurance Plus, with a $9.60 million par account. Both plans feature the Juvenile Guaranteed Insurability Benefit, which lets a child buy additional coverage later without a medical exam.

Growth Insurance focuses on tax-deferred accumulation and a steadily increasing death benefit, making it ideal for long-term family legacy planning. Growth Insurance Plus accelerates cash value access, giving families greater flexibility for education, investment opportunities, or liquidity needs through policy loans or collateral.

RBC’s key financial strengths

$9.60 million participating fund
6.30% dividend rate
Stable long-term DSIR history, supported by smoothing techniques that reduce short-term volatility
50/50 target asset mix between fixed income (bonds, mortgages) and non-fixed income (equities, commercial real estate)
Prudent investment strategy focused on disciplined risk management and long-term performance stability

Why choose RBC

Reduces volatility through smoothing techniques that help stabilize returns and support consistent dividends
Strengthens long-term stability by serving more than 5 million clients across diversified segments
Supports predictable returns with a balanced 50/50 asset allocation that aligns long-term growth with risk control
Maximizes policyholder value through disciplined risk oversight and a long-term investment approach

Unique selling point (USP): RBC Growth Insurance and Growth Insurance Plus are ideal for Canadians who want guaranteed cash values, long-term growth, and early access to policy funds when needed.

Cash Accumulation

RBC Growth Insurance: Cash values accessible after policy year 5

RBC Growth Insurance Plus: Faster early cash value accumulation vs. base plan

Dividend Options

Paid-up additions (PUA), cash dividends, premium reduction, deposit at interest, enhanced coverage

12. Assumption Life: Best for quick-issue policies

Best for quick-issue policies

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Golden Protection
Golden Protection Elite
FlexOptions

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

A-

Dividend Scale Interest Rate (DSIR)

5.75%

PolicyAdvisor Rating

We give Assumption Life 3.5/5 for offering some of Canada’s strongest fast-approval whole life options, making it an excellent fit for clients who want lifetime coverage without medical exams or long underwriting queues. Backed by a 165% solvency ratio and more than 135 years as a Canadian mutual insurer, Assumption Life provides a highly stable foundation for its quick-issue non-participating whole life lineup, including Golden Protection, Golden Protection Elite, and FlexOptions.

These plans pair simplified, primarily digital applications with streamlined underwriting and rapid decisions, and are available with flexible payment options such as pay to 100 and select limited-pay structures, giving clients guaranteed premiums, level lifetime coverage, and predictable long-term costs.

Assumption Life’s key financial strengths:

5.75% dividend rate
$12.6 million in net earnings, reflecting strong profitability growth
$2.3 billion in total assets
$197 million in policyholder surplus, reinforcing long-term financial strength
165% solvency ratio, demonstrating excellent capital adequacy
Mutual ownership structure, where profits support policyholders instead of external shareholders

Why choose Assumption Life:

Puts policyholders first, with a mutual-company model that prioritizes long-term value over shareholder returns
Strengthens long-term guarantees with high surplus levels and a strong solvency position
Improves accessibility and speed through a fully digital underwriting and application experience
Balances growth and risk, ensuring steady financial performance and disciplined management
Delivers reliable profitability, supporting long-term dividend performance and stability
Ideal for clients seeking simplicity, fast approvals, and dependable guaranteed coverage

Unique selling point (USP): Assumption Life excels in fast approvals and simplified underwriting for guaranteed, no-exam whole life coverage.

Cash Accumulation

Golden Protection/Elite: Guaranteed cash values with steady growth

FlexOptions: Flexible accumulation tailored to client needs

Dividend Options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

13. Beneva: Best for complementary additional features

Best for complementary features

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Beneva Participating Whole Life
Beneva Non-Participating Whole Life
Simplified and Guaranteed Issue Whole Life

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

Dividend Scale Interest Rate (DSIR)

not publicly disclosed

PolicyAdvisor Rating

We give Beneva 3.5/5 for being an excellent choice for Canadians who want whole life insurance backed by a strong mutual-company foundation and enhanced by valuable built-in features at no added cost. Supported by a $27.5 billion asset base and a 150% solvency ratio, Beneva’s participating whole life plan offers lifetime protection with complimentary benefits designed to enhance coverage, service, and long-term value.

Beneva’s key financial strengths:

$27.5 billion in total assets
$589 million in consolidated net income, demonstrating strong profitability growth
15.2% return on equity
$4.2 billion in consolidated equity
150% solvency ratio, reflecting excellent capital strength

Why choose Beneva

Reinvests profits into member benefits through a mutual, member-first ownership model
Strengthens long-term financial stability with large asset scale and rising business volume
Builds trust and claim-paying credibility, backed by strong ratings and governance oversight
Enhances value through bundled benefits and competitive pricing without extra rider costs
Supports long-term performance stability with disciplined financial management and strong capital reserves

Unique selling point (USP): As Canada’s largest mutual insurer, Beneva reinvests its profits into member benefits and product improvements, allowing policyholders to enjoy added value without paying extra premiums.

Cash Accumulation

Beneva Participating Whole Life: Cash value begins after policy year 1

Beneva Non-Participating Whole Life: Guaranteed cash value

Simplified and Guaranteed Issue Whole Life: Cash values available in later years

Dividend Options

Beneva Participating Whole Life: Paid-up additions (PUA), premium reduction, cash dividends, deposit at interest

14. UV Insurance: Best for long-term growth

Best for Long-Term Growth

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Whole Life High Values
Adaptable Whole Life
Non‑participating whole life (simplified issue)

Payment options

10-pay
20-pay
pay-to-100

A.M. Best financial strength rating

N/A

Dividend Scale Interest Rate (DSIR)

N/A

PolicyAdvisor Rating

We give UV Insurance 3.5/5 for being an excellent choice for Canadians who want long-term, reliable whole life growth backed by a mutual-style insurer with over 130 years of operations. Supported by a strong 172% solvency ratio, UV delivers the kind of financial stability that long-term whole life policyholders depend on. Its participating whole life plans focus on steady, predictable cash value accumulation with conservative investment management and policyholder-first governance.

UV Insurance’s key financial strengths

130+ years as a mutual-style insurer, operating under a policyholder-owned structure
$6.6 million in net income
172% solvency ratio, indicating a strong capital buffer
$256.4 million in mutual members’ equity, reinforcing a solid policyholder-backed capital base
Conservative investment and disciplined long-term risk management
Fully digital platform using the web-based My Universe system to streamline underwriting and client experience

Why choose UV Insurance

Supports policyholder value directly, reinvesting profits and surplus into members rather than external shareholders
Protects long-term guarantees with a very high solvency ratio and disciplined capital management
Improves application speed and convenience with a fully digital underwriting experience
Strengthens community impact, allocating more than 10% of profits to health, education, and social initiatives
Delivers operational stability, backed by over a century of mutual-model stewardship and financial discipline

Unique selling point (USP): UV prioritizes long-term growth with high cash value potential (up to 50% of coverage by age 65 in select plans) and digital simplicity.

Cash Accumulation

Whole Life High Values: High long-term growth; cash values can reach up to 50% of the coverage amount by age 65

Adaptable Whole Life: Cash value begins in later policy years; paid-up value available from the 10th anniversary

Non‑participating whole life (simplified issue): Cash value begins from the 5th contract anniversary

Dividend Options

N/A (primarily non-participating focus)

15. Wawanesa: Best for value and guaranteed benefits

Best for value and guaranteed benefits

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Wawanesa Life Par

Payment options

20-pay
pay-to-100

A.M. Best financial strength rating

Dividend Scale Interest Rate (DSIR)

6.0%

PolicyAdvisor Rating

We give Wawanesa 3.5 for being a leading choice for Canadians who want whole life insurance with dependable guarantees, conservative investment management, and long-term affordability. The Wawanesa Life Par offers both 20-pay and pay to 100 premium options. Wawanesa backs this participating plan with a strong financial foundation, including $311 million in life division equity. The plan delivers predictable, steady cash value growth and consistent dividend performance, supported by a disciplined bond-focused investment strategy.

Wawanesa’s key financial strengths

6.00% dividend scale interest rate
$1.9 billion life insurance asset base
$4.7 billion group equity / surplus supporting strong capitalization across the mutual group
$311 million life division equity supporting long-term participating guarantees
Conservative investment strategy anchored by a high-quality, low-volatility bond portfolio

Why choose Wawanesa:

Supports dependable dividend performance through conservative asset management and a bond-focused mix
Stabilizes long-term returns with a high-quality, low-volatility bond portfolio
Reinforces policyholder security using strong surplus reserves from a leading Canadian mutual insurer
Directs profits to policyholders rather than shareholders under its mutual ownership model
Provides competitive, affordable pricing with reliable guarantees and steady cash-value growth

Unique selling point (USP): Wawanesa Life Par delivers predictable, steady cash value growth and consistent dividend performance, supported by a disciplined bond-focused investment strategy.

Cash Accumulation

Guaranteed cash values; dividend-eligible

Dividend Options

Paid-up additions (PUA), premium reduction, cash payment, or accumulation at interest

Methodology: How we determined the best whole life insurance companies in Canada

We selected the best whole life insurance companies in Canada by evaluating financial strength, policy design, cash value performance, and overall customer value using advisor expertise and industry data.

Financial strength ratings: We prioritize insurers with strong, stable financial ratings to ensure long-term claim-paying ability and dividend reliability. Our team reviews ratings across multiple agencies to confirm consistency and stability
Policy details: Each policy must match real client needs. We analyze premium payment periods, cash value schedules, guarantees, and available riders to ensure policies offer meaningful flexibility and protection
Key features: Features and riders can significantly increase a policy’s value. We compare options such as accelerated benefits, waiver of premium, and guaranteed insurability to highlight policies with strong, practical enhancements
Premium costs: Value matters. We review quotes across insurers to identify policies that balance affordability with robust benefits, ensuring you get strong coverage without overpaying
Coverage amounts: Coverage must align with your financial goals. We assess minimum and maximum coverage options and how well they meet needs like income replacement, estate planning, and final expenses.
Cash value growth potential: Cash value is a major differentiator. We examine long-term growth potential, interest crediting, and historical performance to identify policies that provide strong liquidity and retirement flexibility
Dividend options: For participating policies, we review dividend history and available dividend options. Insurers with consistent dividend performance and flexible choices rank higher

Cost of whole life insurance in Canada

Whole life insurance premiums vary depending on your age, health, coverage amount, plan type, and payment term. Several factors influence the cost:

Age: Younger applicants lock in lower premiums
Health: Better health and non-smoking status reduce costs
Coverage amount: Higher death benefits increase premiums
Payment term: Shorter terms (e.g., 10-pay) cost more annually but finish sooner
Plan type and riders: Participating policies, optional benefits, and extra coverage add to the total premium

The table below compares annual premiums, cash value growth, and death benefits for $100,000 life-pay whole life policies for a healthy 30-year-old female non-smoker across major Canadian insurers.

Cost of $100,000 whole life insurance by insurer

Insurer	Annual premium	Cash value: year 20	Cash value: year 40	Death benefit: year 40
BMO	$1,230	$21,482	$116,483	$246,237
Canada Life	$800	$13,419	$68,267	$121,507
Empire Life	$689	$14,574	$67,845	$132,540
Equitable Life	$818	$21,481	$90,510	$163,023

* Illustrative values for a $100,000 life-pay participating whole life policy for a healthy 30-year-old female non-smoker. Cash values and death benefits are not guaranteed and depend on dividends, insurer performance, and policy design. Actual premiums and results vary by underwriting and product options.

Who should consider whole life insurance

Whole life insurance is suitable for people who:

Want permanent coverage with predictable premiums
Are seeking cash value growth for retirement, education, or estate planning
Prefer long-term financial security for dependents or business planning
Value mutual or financially strong insurers that return profits to policyholders

How to choose the best whole life insurance in Canada

Choosing the best whole life insurance policy comes down to comparing costs, features, flexibility, and the insurer’s financial strength. Here are the key factors to review before you decide:

Premiums and charges: Compare premium levels across companies and check for extra fees such as admin charges or rider costs
Customer support: Look for strong service ratings, easy policy management, and responsive support
Claims handling: Choose insurers with a reputation for fast, hassle-free claims during critical times
Policy flexibility: Prioritize plans that offer useful riders and customization options so you can tailor coverage to your needs
Underwriting requirements: Review medical exams or health questionnaires. No-exam options offer convenience but may come with higher premiums
Company standing: Check financial strength ratings and long-term performance to ensure the insurer is stable and reliable

What is the difference between participating, non-participating life insurance, and term life insurance?

Participating, non-participating, and term life insurance offer different levels of protection, costs, and cash value features. Participating whole life creates lifetime protection and builds cash value while giving you the chance to earn dividends. Non-participating whole life keeps lifetime coverage simple by offering guaranteed growth with no dividends. Term life focuses on affordable, temporary protection and does not build cash value.

Difference between participating, non-participating life insurance, and term life insurance

Feature	Participating whole Life	Non-participating whole life	Term life
Coverage Duration	Lifetime	Lifetime	10-30 years, renewable
Premiums	Higher, level	Lower, fixed	Lowest, may increase
Cash Value	Builds tax-deferred	Guaranteed growth	None
Dividends/Bonuses	Possible (not guaranteed)	None (e.g., BMO bonus)	None
Death Benefit	Guaranteed + potential	Guaranteed	Guaranteed if active
Best For	Estate planning, growth	Predictable costs	Temporary needs, budget

How to get the best whole life insurance quotes

Get the best whole life insurance quotes in three easy steps:

Provide your basic details: Age, health status, coverage amount, and preferred payment term
Compare top plans: Review premiums, riders, cash value, and insurer strength side-by-side
Consult a licensed advisor: Lock in your rate and get expert guidance at no cost.

Licensed PolicyAdvisor advisors will help you compare options, answer questions, and ensure your coverage aligns with long-term goals.

Frequently asked questions

What are the pros and cons of whole life insurance?

Whole life insurance provides lifelong coverage and steady, tax-advantaged cash value growth. However, it has higher premiums and less early policy liquidity compared to other types of insurance.

Pros of whole life insurance:

Permanent, lifetime coverage that guarantees a payout whenever you pass away
Premiums stay level for life with no increases
Guaranteed cash value accumulation over time
Tax-advantaged growth inside the policy
Optional access to funds through policy loans or withdrawals
Potential dividends on participating policies

Cons of whole life insurance:

Not cost-effective for short-term insurance needs
Higher premiums than term life for the same coverage amount
Cash value builds slowly in the first years
Less liquidity and fewer withdrawal options than other investment vehicles
Dividends are not guaranteed (if applicable)

What are the alternatives to whole life insurance?

The main alternatives to whole life insurance are term life, universal life, guaranteed universal life (GUL), variable life, and indexed universal life (IUL). Each offers different levels of cost, flexibility, and cash value potential.

Key options at a glance:

Term life insurance: Low-cost protection for a set period (e.g., 10–30 years). No cash value
Universal life insurance: Flexible premiums and adjustable coverage; cash value tied to interest performance
Guaranteed universal life (GUL): Lifetime coverage with guaranteed premiums and death benefit; little or no cash value
Variable life / Indexed universal life: Cash value linked to market or index performance; higher risk and potential returns

Choosing the right alternative depends on your budget, goals, and risk tolerance.

Can you borrow money from a whole life policy?

Yes, you can borrow money from a whole life insurance policy through policy loans. These loans typically have lower interest rates compared to traditional loans. However, unpaid loans may reduce the death benefit and cash value available to beneficiaries.

What is the best age to buy whole life insurance?

The best age to buy whole life insurance is typically younger. Purchasing at a younger age locks in lower premiums and ensures longer-term coverage. It also allows more time for the policy’s cash value to accumulate and grow.

How long does a whole life insurance policy last?

A whole life insurance policy lasts for your entire life as long as you continue to pay premiums. It provides lifelong coverage, unlike term life insurance which covers a specific period (e.g., 10, 20, or 30 years). This permanence ensures the policy remains in effect and the death benefit is paid out to beneficiaries whenever the insured passes away, regardless of age.

Are whole life insurance policies worth it?

Whole life insurance is worth it if you need permanent coverage and want guaranteed cash value growth. It’s best for long-term planning, estate protection, and tax-advantaged wealth transfer. If your goal is short-term affordability, term life is usually a better fit.

How much does whole life insurance cost in Canada?

Whole life insurance costs more than term because it provides lifetime coverage and builds cash value. Premiums depend on age, health, coverage amount, and whether the policy is participating or non-participating. Younger applicants and non-smokers receive the lowest rates.

What is the difference between participating and non-participating whole life?

Participating whole life pays dividends based on the insurer’s performance. These dividends can be used to buy additional coverage, reduce premiums, or grow cash value.
Non-participating whole life offers guaranteed values only, with no dividends but predictable long-term costs.

How do policy loans work in Canada?

You can access cash value through loans or partial withdrawals. Loans are tax-deferred, but withdrawing or borrowing too much may reduce the death benefit and cash value. Always review your policy terms before using this feature.

Are whole life insurance dividends taxable?

Dividends from participating whole life policies are generally not taxable if used to purchase additional coverage or leave in the policy. Dividends taken in cash may have tax implications in certain situations.

Can you cancel a whole life insurance policy?

Yes, you can cancel a whole life insurance policy at any time. If you cancel after the cash value has built up, you may receive a cash surrender value. However, cancelling early may result in little to no payout, and surrender charges may apply.

Can whole life insurance be used for retirement income?

Yes. Whole life insurance can supplement retirement income by using policy loans or withdrawals from accumulated cash value. This strategy works best with well-funded participating policies and should be planned carefully to avoid reducing the death benefit too much.

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Best limited pay whole life insurance plans in Canada (2026)

Limited pay whole life lets you compress premiums into 5, 8, 10, 15, 20 years, or to age 65, while maintaining coverage for life. It’s ideal for Canadians who want permanent protection without paying premiums for life.

In this guide, we compare the best 5‑pay, 10‑pay, and 20‑pay whole life insurance plans in Canada.

Based on our review of leading whole life insurers in Canada, the following five companies stand out for limited pay options, with detailed comparisons of each provider covered later in the guide.

Top 5 limited pay whole life insurance companies in Canada (2026)

Equitable Life: Best for dividend stability
Manulife: Best for flexible payment terms and affordability
Empire Life: Best for long-term value and conservative growth
Sun Life: Best for estate and legacy planning
BMO Insurance: Best for guaranteed values and flexible pay options

What is limited pay whole life insurance?

Limited pay whole life insurance is a type of whole life insurance plan where you only pay the premiums for a set number of years. Most Canadian insurers provide 10-pay and 20-pay options; fewer offer 5-pay or 15-pay plans.

Term life insurance expires after a set period, but whole life insurance provides lifelong coverage. The “limited pay” feature lets you choose how long to pay, after which your policy is fully paid-up.

How it works:

You pay higher premiums during the limited-pay period, overfunding the policy
Extra contributions build cash value at guaranteed rates, often enhanced by insurer dividends
After payments end, the cash value acts as a reserve, covering future mortality costs and keeping the death benefit active

Participating policies from top Canadian insurers accelerate growth through annual dividends, boosting both cash value and endowment.

Some of the key benefits of limited pay plans include the following:

No premiums in retirement: Complete payments early and stay protected for life
Faster cash value growth: Front-loaded premiums accelerate cash value accumulation
Guaranteed lifetime coverage: Policy remains active even after payments end
Tax-advantaged growth: Cash value grows tax-deferred, but you may owe taxes if you surrender the policy or it doesn’t meet Income Tax Act (ITA) exemptions. Beneficiaries usually receive death benefits tax-free, though some exceptions exist.
Estate planning advantage: Fully paid-up policies simplify wealth transfer to beneficiaries

People who want permanent coverage without lifelong premiums find these plans appealing, especially those focused on retirement planning, estate transfers, or long-term wealth building.

Explore the most affordable whole life insurance plans in Canada

Age (in years)

Gender

Smoker

Yes

Monthly Contribution Budget

Which limited pay structures are available in Canada?

The limited pay whole life insurance structures in Canada include 5-pay, 10-pay, 15-pay, 20-pay, and pay-to-age-65 plans. These options determine how long you’ll pay premiums before your policy becomes fully paid-up, yet still maintain lifetime coverage. For the purposes of this guide, we focus on the 5-pay, 10-pay, and 20-pay plans.

Best limited pay whole life insurance plans from top Canadian providers

Canadian insurers offer a range of limited-pay whole life insurance policies, for the purposes of this guide, we focus on the 5-pay, 10-pay, and 20-pay plans. Below are the best limited-pay whole life insurance plans offered by Canada’s leading insurers.

Limited-pay whole life insurance policies offered by Canadian insurers

Insurer	Product name	Premium payment terms
Equitable Life	Equimax Estate Builder	10-pay, 20-pay, pay-to-100
	Equimax Wealth Accumulator	10-pay, 20-pay, pay-to-100
Manulife	Manulife Par	10-pay, 20-pay, pay-to-100
	Manulife Par with Vitality Plus	10-pay, 20-pay, pay-to-100
	Performax Gold	10-pay, 20-pay, pay-to-100
Empire Life	EstateMax	20-pay, pay-to-100
	Optimax Wealth	8-pay, 10-pay, 20-pay, pay-to-100
Sun Life	Sun Par Protector II	10-pay, 15-pay, 20-pay, pay-to-age-65
	Sun Par Accumulator II	10-pay, 15-pay, 20-pay, pay-to-age-65
	Sun Par Accelerator	8-pay only
BMO Insurance	Estate Protector	10-pay, 20-pay, pay-to-100
	Wealth Accelerator	10-pay, 20-pay, pay-to-100
Canada Life	Wealth Select	10-pay, 20-pay, pay-to-100
	Estate Select	10-pay, 20-pay, pay-to-100
Desjardins Insurance	5-Pay PAR	5-pay only
	Estate Enhancer	10-pay, 15-pay, 20-pay, pay-to-65, pay-to-100
	Accelerated Growth	10-pay, 15-pay, 20-pay, pay-to-65, pay-to-100
iA (Industrial Alliance)	iA PAR Wealth	10-pay, 20-pay, pay-to-100
	iA PAR Estate	10-pay, 20-pay, pay-to-100
RBC Insurance	RBC Growth Insurance	10-pay, 20-pay, pay-to-100
	Growth Insurance Plus	10-pay, 20-pay, pay-to-100
Wawanesa Life	Whole Life Participating	20-pay, pay-to-100

Best limited pay whole life insurance plans in Canada

If you’re considering a limited‑pay whole life plan, these insurers offer strong options that combine lifetime coverage with early premium completion. Our picks below reference publicly reported Dividend Scale Interest Rates (DSIR), participating account details, product features as of 2026. Your best fit depends on age, health, budget and goals.

Equitable Life: Best for dividend stability
Manulife: Best for flexible payment terms and affordability
Empire Life: Best for long-term value and conservative growth
Sun Life: Best for estate and legacy planning
BMO Insurance: Best for guaranteed values and flexible pay options
Canada Life: Best for flexibility and customization
Desjardins: Best for early pay-off and flexible growth
iA (Industrial Alliance): Best for accessible cash value
RBC Insurance: Best for early pay-off and guaranteed values
Wawanesa Life: Best for affordability and steady growth

Let’s take a closer look at what makes these limited pay whole life insurance plans among the best in Canada.

1. Equitable Life: Best for dividend stability

Best for balanced performance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Equimax Estate Builder
Equimax Wealth Accumulator

Payment options

10-pay
20-pay
pay-to-100

A.M. Best Financial Strength Rating

N/A

Dividend Scale Interest Rate (DSIR)

6.40%

PolicyAdvisor Rating

We give Equitable Life a 5/5 rating for its strong dividend track record and long-term growth. Equimax Estate Builder and Equimax Wealth Accumulator are backed by a $2.73 billion participating account. These plans offer lifetime coverage with 10-pay, 20-pay, and life-pay options.

Equimax Wealth Accumulator is designed for earlier cash value access, making it a suitable choice for building accessible wealth for education, business or retirement. Conversely, Equimax Estate Builder focuses on higher long-term value and supports estate planning by helping cover taxes and fees on asset transfer after death.

New Equimax participating whole life policies include Equitable’s built-in KIND program. This adds claim-time flexibility to Equimax’s limited-pay whole life options, providing compassionate and snap advances, access to policy cash value in cases of severe disability, and bereavement counselling benefits.

Equitable Life’s key financial strengths:

Par fund size: $2.73 billion
Dividend Scale Interest Rate (DSIR): 6.40%
Historical dividend rate: Above 6% for more than 12 years, supported by long-term smoothing
30-year average return: 7.59%
Exceptionally low volatility: 1.25% standard deviation over 30 years, one of the most stable in Canada
Par fund asset mix: 49% fixed income, 38% non-fixed income, 2% cash, and 11% policy loans.
Investment approach: Par account uses long-term smoothing to reduce short-term market fluctuations and maintain consistent dividend performance

Why choose Equitable Life

Maintains an extremely stable dividend rate history with one of the lowest long-term volatility profiles in Canada
Manages a large, well-diversified par fund with balanced exposure across fixed income, equities, real estate, and private assets
Mutual company structure directs profits to support participating policyholders rather than shareholders
Drives strong long-term investment performance, driven by disciplined and conservative par fund management

Unique selling point (USP): Equimax Estate Builder and Equimax Wealth Accumulator suit Canadians who want stable, long-term value, reliable dividends and accessible cash value from a trusted insurer.

Cash value accumulation

Equimax Estate Builder: Slower early growth; strong long-term value

Equimax Wealth Accumulator: Faster early growth; accessible earlier

Dividend options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

2. Manulife: Best for flexible payment terms and affordability

Best for flexible payment terms and affordability

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Manulife Par
Manulife Par with Vitality Plus
Performax Gold

Payment options

10-pay
20-pay
pay-to-100

A.M. Best Financial Strength Rating

A+

Dividend Scale Interest Rate (DSIR)

6.35%

PolicyAdvisor Rating

Manulife earns a 5/5 rating for its Manulife Par, Manulife Par with Vitality Plus, and Performax Gold plans. These policies are known for affordable premiums and flexible payment options. They offer lifetime coverage with 10-pay, 20-pay, and pay-to-100 options, allowing policyholders to complete payments early or spread them over time. A $15.98 billion participating account backs these plans, supporting long-term guarantees, stable dividends, and reliable performance.

Manulife Par focuses on stable long-term growth with guaranteed premiums, immediate cash value buildup, and annual dividend payouts. Meanwhile, Manulife Par with Vitality Plus offers strong early guaranteed cash values while also providing access to the Manulife Vitality program, which rewards healthy living with perks and member benefits. Program features vary by eligibility and do not reduce premiums for participating whole life. Performax Gold provides additional flexibility for clients seeking a blend of guaranteed protection and dividend-driven long-term value.

Manulife’s key financial strengths:

Par fund size: $15.98 billion
Dividend Scale Interest Rate (DSIR): 6.35%
Capital strength: Life Insurance Capital Adequacy Test (LICAT ratio) of 138%, among the highest capitalization levels of major Canadian insurers
Diversified global operations across Canada, the U.S., Asia, and global asset management, reducing earnings volatility
Strong balance sheet supported by investment-grade assets and disciplined risk management

Why choose Manulife:

Maintains one of Canada’s highest-capitalized insurers, with a 138% Life Insurance Capital Adequacy Test (LICAT) ratio supporting long-term dividend stability
Diversifies its global investments across North America and Asia, helping stabilize performance even in volatile markets
Consistently generates strong profitability, backed by strong core earnings and disciplined risk management
Advances underwriting analytics and Vitality program to support sustainable premiums, lower risk, and stable product performance

Cash value accumulation

Manulife Par: Cash value starts after 1 year

Manulife Par with Vitality Plus: Cash value starts after 1 year; includes Vitality benefits

Performax Gold: Cash value starts after 5 years (slower early buildup)

Dividend options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

3. Empire Life: Best for long-term value and conservative growth

Best for long-term value and conservative growth

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

EstateMax
Optimax Wealth
Solution Series

Payment options

8-pay
10-pay
20-pay
pay-to-100

A.M. Best Financial Strength Rating

Dividend Scale Interest Rate (DSIR)

6.25%

PolicyAdvisor Rating

We give Empire Life 4.5/5 for its EstateMax and Optimax Wealth plans that offer predictable long-term growth through a disciplined, conservative investment approach. These participating plans are supported by a disciplined $1.21 billion par fund, known for its stability and long-term results.

EstateMax focuses on long-term accumulation and conservative dividend performance, helping Canadians build a lasting financial legacy. In comparison, Optimax Wealth emphasizes steady cash value growth over time, offering predictable policy performance and long-term financial security. While Estate Max is available with 20-pay and pay-to-100 premium options. Optimax Wealth offers flexible payment structures, including 8-pay, 10-pay, 20-pay, and pay-to-100.

Empire Life’s key financial strengths:

Par fund size: $1.21 billion
Dividend rate: 6.25%
Dividend rate history: Above 6% for more than 10 years, showing exceptional long-term stability
30-year average return: 6.97%
Par fund asset mix: 64% bonds, 29% equities, 7% cash and other assets
Conservative, long-duration bond portfolio with reinvestment smoothing that stabilizes long-term returns

Why choose Empire Life:

Conservatively structures its par fund with 64% bonds, 29% equities, 7% cash and other assets, supporting predictable long-term returns
Maintains one of the most stable dividend rate histories in Canada, consistently at or above 6% for more than a decade
Delivers strong multi-decade investment performance, including a 30-year average return of 6.97%
Applies disciplined, value-oriented investment approach designed to meet long-term guarantees and deliver steady policyholder value

Unique selling point (USP): EstateMax and Optimax Wealth are ideal for Canadians seeking stable cash accumulation and steady dividend performance.

Cash value accumulation

EstateMax: Steady long-term growth

Optimax Wealth: High early cash values

Dividend options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

4. Sun Life: Best for estate and legacy planning

Best for estate and legacy planning

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Sun Par Protector II
Sun Par Accumulator II
Sun Par Accelerator
SunSpectrum Permanent Life II

Payment options

8-pay
10-pay
15-pay
20-pay
pay-to-65

A.M. Best Financial Strength Rating

A+

Dividend Scale Interest Rate (DSIR)

6.25%

PolicyAdvisor Rating

We give Sun Life 4.5/5 for its Sun Par Protector II, Sun Par Accumulator II, and Sun Par Accelerator plans, which consistently deliver strong estate and wealth-planning value for Canadian families. The company backs these plans with a $21.2 billion par fund that supports more than 400,000 active participating policies, making it one of the strongest structures in Canada.

For those preferring non-participating plans, SunSpectrum Permanent Life II also offers 10-pay, 20-pay, and pay-to-age-100 payment structures.

Sun Life’s key financial strengths

Par fund size: $21.2 billion
Dividend Scale Interest Rate (DSIR): 6.25%
Life Insurance Capital Adequacy Test (LICAT) ratio: 154%, one of the strongest among major Canadian insurers
Global earnings diversification, with strong contributions from Canada, the U.S., Asia, and asset management
Consistent profitability, supported by stable insurance operations and strong wealth-management franchise

Why choose Sun Life

Leads the industry with global diversification, with strong footholds in Canada, the U.S., and Asia, while operating institutional asset-management platforms
Maintains exceptional capital strength, with a 154% Life Insurance Capital Adequacy Test (LICAT) ratio supporting long-term guarantees in its participating products
Manages multiple par product designs, including estate-focused, accumulation-focused, and a competitive 8-pay option for clients seeking fast paid-up coverage
Generates strong underlying earnings power, reflected in more than $1 billion of underlying net income, which reinforces dividend stability
Scales highly for affluent and corporate clients, making it popular for tax-efficient wealth transfer, corporate surplus planning, and long-term estate and legacy strategies

Cash value accumulation

Sun Par Protector II: Cash value starts after 5 years

Sun Par Accumulator II: Cash value starts after 1 year

Sun Par Accelerator: Cash value starts after 1 year

SunSpectrum Permanent Life II: Cash value starts after 2 years

Dividend options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

5. BMO Insurance: Best for guaranteed values and flexible pay options

Best for guaranteed values and flexible pay options

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Estate Protector
Wealth Accelerator

Payment options

10-pay
20-pay
pay-to-100

A.M. Best Financial Strength Rating

Performance bonus rate

5.75%

PolicyAdvisor Rating

We give BMO Insurance 4/5 because it offers two non‑participating limited‑pay options, Estate Protector and Wealth Accelerator, both known for their strong guaranteed cash values and flexible limited pay options. These plans set themselves apart with a Performance Bonus (5.75%), increasing both the death benefit and cash value each year without relying on traditional dividends. BMO supports its policies with a robust insurance net income of $95 million.

You can choose 10-pay, 20-pay, or pay-to-100 premium schedules to match your financial goals and payment flexibility. Estate Protector focuses on long‑term estate planning and builds strong guaranteed cash value and death benefit growth to help preserve wealth and minimize estate taxes. In contrast, Wealth Accelerator is designed for higher liquidity and faster cash value access, suitable for business owners or high-income earners.

BMO’s key financial strengths

Insurance net income: $95 million
Performance Bonus Rate: 5.75% (This is not a dividend scale interest rate. In BMO’s non‑par design, performance credits may be applied to enhance policy values as defined in the contract. Values are not guaranteed and can change.)

Business positioning: BMO Insurance operates within BMO’s Wealth Management segment, benefiting from diversified earnings and enterprise-wide risk management

Why choose BMO

Consistently grows insurance profitability with $95 million supporting long-term stability
Drives rising insurance revenue backed by diversified business activities and a favorable one-time gain
Offers competitive 5.75% Performance Bonus Rate that strengthens guaranteed values for non-participating whole life policyholders
Integrates within BMO Wealth Management, adding operational scale, stability, and risk-management support

Unique selling point (USP): Estate Protector and Wealth Accelerator are ideal for Canadians who want lifetime coverage with guaranteed values, predictable performance, and payment flexibility.

Cash value accumulation

Estate Protector: Strong guaranteed cash values; long-term estate growth

Wealth Accelerator: Faster liquidity; quicker cash value access

Dividend options

Not available. BMO offers a performance bonus that is used to buy additional paid-up insurance coverage (Paid-Up Additions)

6. Canada Life: Best for flexibility and customization

Best for flexibility and customization

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Estate Select
Wealth Select

Payment options

10-pay
20-pay
pay-to-100

A.M. Best Financial Strength Rating

A+

Dividend Scale Interest Rate (DSIR)

5.75%

PolicyAdvisor Rating

We give Canada Life 4/5 because its Estate Select and Wealth Select plans offer customizable limited pay options with 10-pay, 20-pay, and pay-to-100 structures. It backs these plans with its $61.9 billion par fund, the largest in Canada, and holds about 1.4 million participating life insurance policies in force.

Estate Select focuses more on long-term growth, therefore helping maximize the death benefit for estate planning. On the other hand, Wealth Select is designed for earlier cash value access, allowing policyholders to make withdrawals or policy loans when needed. These participating plans suit Canadians who want to tailor growth, riders, and coverage to their personal or business goals.

Canada Life’s key financial strengths

Par fund size: $61.9 billion (largest participating account in Canada)
Dividend Scale Interest Rate (DSIR): 5.75%
Par fund asset mix: Fixed income: 60.0% (public bonds, private debt, mortgages, other fixed income) and Non-fixed income: 30.7% (real estate, public equity, private equity)
Disciplined investment governance, with formal investment guidelines covering liability characteristics, liquidity needs, tax factors, and interest rate risk
Strong asset‑liability management (ALM) discipline, including cash-flow matching to ensure assets can meet long-term policyholder obligations

Why choose Canada Life

Manages Canada’s largest par fund ($61.9 billion), providing unparalleled stability and diversification
Supports resilient, long-term returns with a highly diversified asset mix across mortgages, private debt, real estate, public equity, and private equity
Applies strong asset‑liability management (ALM) discipline and cash-flow matching help stabilize investment returns that support long-term Dividend Scale Interest Rate (DSIR) performance
Enforces clear investment guidelines ensure the fund stays within defined parameters to protect long-term policyholder value

Unique selling point (USP): Estate Select and Wealth Select suit Canadians who want to tailor growth, riders, and coverage to their personal or business goals.

Cash value accumulation

Estate Select: Cash value starts in year 1, with a focus on long-term growth and maximizing the death benefit for estate planning

Wealth Select: Cash value starts in year 1, with earlier cash value access through withdrawals or policy loans

Dividend options

Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit

7. Desjardins: Best for early and flexible pay-off

Best for early and flexible pay-off

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

5-Pay PAR
Estate Enhancer
Accelerated Growth

Payment options

5-pay
10-pay
15-pay
20-pay
pay-to-100

A.M. Best Financial Strength Rating

N/A

Dividend Scale Interest Rate (DSIR)

6.30%

PolicyAdvisor Rating

We give Desjardins 4/5 for its flexible limited pay options in Canada, combining a rare 5-pay participating option with the more standard 10-pay, 15-pay, 20-pay, pay-to-65, and pay-to-100 structures across its par lines. The company backs its participating (par) lineup with one of the strongest capital positions in Canada, maintaining a Tier 1A capital ratio of 23.1%.

Desjardins’ key financial strengths

Dividend Scale Interest Rate (DSIR): 6.30%
Surplus earnings: $1.115 billion, reflecting strong financial performance
Wealth Management and Life and Health Insurance surplus earnings: $174 million, showing positive insurance segment profitability
Tier 1A capital ratio: 23.1%, far above regulatory minimums and among the strongest in Canada
Cooperative structure, where profits are reinvested into member benefits (including member dividends, community sponsorships, and reinvestment)

Why choose Desjardins

Offers one of the only 5-pay participating whole life plans in Canada, enabling rapid paid-up coverage and strong early cash values
Operates a cooperative ownership model means profits support members rather than shareholders
Maintains exceptionally strong capital ratios (Tier 1A: 23.1%), reinforcing long-term par stability and financial strength
Grows insurance segment momentum, with rising surplus earnings supported by favourable market conditions and strong underlying operations
Provides a flexible participating product suite, offering options for fast paid-up coverage or long-term growth depending on individual needs

Cash value accumulation

5-Pay PAR: Steady long-term growth

Estate Enhancer: Steady long-term growth

Accelerated Growth: Fastest access to cash value during the first 10 to 15 years of the policy

Dividend options

5-Pay PAR: Enhanced insurance

Estate Enhancer and Accelerated Growth: Paid-up additions (PUA), premium reduction, cash dividends, deposit at interest, and enhanced coverage

8. Industrial Alliance (iA): Best for accessible cash value

Best for for accessible cash value

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

iA PAR Estate
iA PAR Wealth

Payment options

10-pay
20-pay
pay-to-100

A.M. Best Financial Strength Rating

A+

Dividend Scale Interest Rate (DSIR)

6.35%

PolicyAdvisor Rating

We give Industrial Alliance (iA) 4/5 for iA PAR Estate and iA PAR Wealth, which build cash value early while supporting long-term estate growth. A $69.36 million par account backs these plans. They offer flexible premium options, including 10-pay, 20-pay, and pay-to-100.

iA PAR Estate focuses on long-term growth of total surrender value and death benefit. In contrast, iA PAR Wealth focuses on short-term growth by maximizing the total cash surrender value in the early years of your policy, while allowing for long-term growth of your estate.

iA’s key financial strengths

Par fund size: $69.36 million
Dividend Scale Interest Rate (DSIR): 6.35%
Return on equity (ROE): 13.0% (core ROE 16.1%)
Solvency ratio: 132%
Diversified business model with leading sales momentum across individual insurance, group insurance, wealth, and U.S. operations

Why choose iA

Delivers strong and growing earnings, contributions broadly across Individual Insurance, Wealth, Group, and U.S. operations
Supports reduced volatility with a highly diversified business model and multiple profit streams beyond life insurance
Demonstrates robust financial strength, boasting a 132% solvency ratio and strong organic capital generation that sustains long-term par stability
Leads market position, ranks number one in segregated fund sales and strong momentum in Individual Insurance
Consistently generates profitability, reflected in a 16.1% core ROE, demonstrating durable earning power for sustaining long-term guarantees
Strategically expands through acquisitions, which strengthens distribution and recurring revenue sources

Unique selling point (USP): PAR Estate and iA PAR Wealth are ideal for Canadians who want a balance of early cash access and long-term wealth accumulation, including parents, professionals, and business owners.

Cash value accumulation

iA PAR Estate: Long-term cash value accumulation

iA PAR Wealth: Early access to cash value

Dividend options

Paid-up additions (PUA), premium reduction, cash dividends, and deposit with interest

9. RBC Insurance: Best for early pay-off and guaranteed values

Best for early pay-off and guaranteed values

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

RBC Growth Insurance
RBC Growth Insurance Plus

Payment options

10-pay
20-pay
pay-to-100

A.M. Best Financial Strength Rating

Dividend Scale Interest Rate (DSIR)

6.30%

PolicyAdvisor Rating

We give RBC Insurance 4/5 because it stands out for early pay-off options and guaranteed cash values through its RBC Growth Insurance and Growth Insurance Plus plans. Backed by a $9.60 million par account, these plans offer the Juvenile Guaranteed Insurability Benefit, which lets a child purchase additional coverage later without a medical exam. They provide lifetime coverage with 10-pay, 20-pay, and life-pay options, giving you flexibility in how quickly you want to finish paying premiums.

RBC Growth Insurance focuses on long-term, tax-deferred growth and increasing the death benefit over time. In comparison, RBC Growth Insurance Plus builds cash value early and provides easier access to funds through policy loans or as collateral, offering flexibility for investments or liquidity needs.

RBC’s key financial strength

Par fund size: $9.60 million
Dividend Scale Interest Rate (DSIR): 6.30%
Dividend scale interest rate (DSIR) history: Stable over several years, supported by smoothing techniques to reduce short-term volatility
Participating account asset mix (target): 50% fixed income (bonds, mortgages), 50% non-fixed income (equities, commercial real estate)
Investment approach: Prudent, risk-aware management with smoothing and long-term focus to stabilize returns

Why choose RBC

Manages participating accounts using smoothing techniques that reduce short-term volatility and support consistent dividends
Serves more than 5 million clients globally, providing scale and diversification that strengthens long-term stability
Balances asset allocation evenly, 50% fixed income, 50% non-fixed income, to support long-term growth and predictable policyholder returns
Combines prudent risk management and long-term focus, aiming to maximize policyholder value while maintaining capital discipline

Unique selling point (USP): RBC Growth Insurance and Growth Insurance Plus are ideal for Canadians who want guaranteed cash values, long-term growth, and early access to policy funds when needed.

Cash value accumulation

RBC Growth Insurance: Cash values accessible after policy year 5

RBC Growth Insurance Plus: Faster early cash value accumulation vs. base plan

Dividend options

Paid-up additions (PUA), cash dividends, premium reduction, deposit at interest, and enhanced coverage

10. Wawanesa Life: Best for affordability and steady growth

Best for affordability and steady growth

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Wawanesa Life Par

Payment options

20-pay
pay-to-100

A.M. Best Financial Strength Rating

Dividend Scale Interest Rate (DSIR)

6.00%

PolicyAdvisor Rating

We give Wawanesa Life 3.5/5 for its reliable and affordable limited pay whole life insurance in Canada through Wawanesa Life Par. The plan offers both 20-pay and pay-to-100 premium options. Wawanesa backs this participating plan with a strong financial foundation, including $311 million in life division equity. The plan delivers predictable, steady cash value growth and consistent dividend performance, supported by a disciplined bond-focused investment strategy.

Wawanesa’s key financial strengths

Dividend Scale Interest Rate (DSIR): 6.00%
Life insurance asset base: $1.9 billion
Group equity / surplus: $4.7 billion, providing strong capitalization across the mutual group
Life division equity: $311 million, supporting long-term par guarantees
Conservative investment approach, anchored by a high-quality bond portfolio with low volatility

Why choose Wawanesa

Delivers dependable Dividend scale interest rate (DSIR) performance by supporting it with conservative asset management and a bond-heavy investment mix
Manages a very high-quality, low-volatility bond portfolio that helps stabilize long-term returns for participating policyholders
Builds strong capital buffers from a top Canadian mutual insurer; using profits reinforce policyholder stability rather than external shareholders
Policyholder-focused mutual structure directs profits to reinforce stability instead of flowing to shareholders
Offers competitive, affordable pricing with reliable long-term guarantees and steady cash value growth

Unique selling point (USP): Wawanesa Life Par delivers predictable, steady cash value growth and consistent dividend performance, supported by a disciplined bond-focused investment strategy.

Cash value accumulation

Wawanesa Life Par: Guaranteed cash values; and dividend-eligible

Dividend options

Paid-up additions (PUA), premium reduction, cash payment, and accumulation at interest

Methodology: How we ranked the best limited pay whole life insurance in Canada

Our team of licensed insurance advisors at PolicyAdvisor ranked the top limited pay whole life insurance providers in Canada based on key factors:

Premium payment options: Flexibility to pay over 5, 8, 10, 15, 20 years, to age 65 or 100
Coverage amount and plan features: Availability of riders, add-ons, and optional benefits for tailored protection
Financial strength ratings: Third-party ratings (e.g., AM Best) for stability and claims-paying ability
Application process: Ease of underwriting, including simplified or accelerated approval options.

How much does limited pay whole life insurance cost in Canada?

Limited pay whole life insurance premiums depend on your age, health, coverage amount, and payment term. Since payments are compressed into fewer years, shorter terms cost more annually but finish sooner.

Several factors influence pricing:

Age: Younger applicants lock in lower premiums
Health: Better health and non-smoking status reduce costs
Coverage amount: Higher death benefits increase premiums
Payment term: Shorter terms (5-pay, 10-pay) raise annual premiums
Riders: Optional benefits increase total costs

The table below compares projected cash value and death benefit growth across major Canadian whole life insurers based on a $10,000 annual premium paid for 10 years for a 30-year-old non-smoker female.

Whole life value comparison at $10,000 annual premium (10-Pay)

Insurer	Cash value: Year 20	Death benefit: Year 20	Cash value: Year 30	Death benefit: Year 30	Cash value: Year 40	Death benefit: Year 40
BMO	$123,699	$496,134	$286,139	$747,286	$516,114	$1,019,812
Canada Life	$136,104	$404,187	$257,796	$568,830	$457,591	$769,911
Empire Life	$145,524	$605,336	$271,563	$673,570	$486,605	$887,092
Equitable	$170,082	$512,936	$327,675	$734,298	$597,056	$1,020,864
iA	$169,894	$504,091	$318,522	$701,982	$579,006	$973,505
RBC	$139,594	$445,023	$264,630	$601,151	$481,790	$839,064

* Values are non-guaranteed illustrations based on each insurer’s current dividend or performance assumptions. Actual cash values and death benefits may vary.

The table below compares projected cash value and death benefit growth across major Canadian whole life insurers based on a $10,000 annual premium paid for 20 years for a 30-year-old non-smoker female.

Whole life value comparison at $10,000 annual premium (20-Pay)

Insurer	Cash value: Year 20	Death benefit: Year 20	Cash value: Year 30	Death benefit: Year 30	Cash value: Year 40	Death benefit: Year 40
BMO	$193,196	$775,551	$436,574	$1,172,935	$791,569	$1,595,891
Canada Life	$169,339	$677,522	$444,807	$979,325	$800,462	$1,344,474
Empire Life	$227,186	$992,012	$429,421	$1,065,111	$776,676	$1,415,896
Equitable	$267,823	$808,539	$525,402	$1,174,687	$966,279	$1,649,213
iA	$269,356	$797,136	$509,626	$1,121,078	$931,401	$1,563,690
RBC	$237,498	$809,436	$454,137	$1,026,615	$830,731	$1,441,529

* Values are non-guaranteed illustrations based on each insurer’s current dividend or performance assumptions. Actual cash values and death benefits may vary.

Who should consider limited pay whole life insurance?

Limited pay whole life insurance is ideal for Canadians who want permanent coverage without paying premiums for life. It may be a good fit if you:

Want guaranteed lifetime protection
Prefer to finish payments before retirement or major milestones
Have higher disposable income today
Want faster cash value growth and earlier paid-up status
Are planning estate or wealth transfer strategies

Key factors to consider when applying for limited pay whole life insurance

When choosing a policy, look beyond the annual premium. Focus on long-term value:

Payment term: Shorter terms cost more per year but complete faster
Cash value and dividends: Participating policies build tax-advantaged savings over time
Insurer strength: Strong ratings support long-term reliability
Riders and flexibility: Options like disability waiver or paid-up additions enhance protection

Understanding how limited pay differs from traditional whole life insurance can help you decide if it’s the right fit for your goals.

What is the difference between limited pay policies and traditional whole life insurance plans?

The core difference between limited pay and traditional whole life is the payment period. With limited pay plans, you receive lifelong coverage while paying premiums for only a set period. In contrast, a traditional whole life insurance plan requires you to continue paying premiums for as long as you want coverage.

Limited pay policies usually cost more than traditional plans because the payment period is shorter. Furthermore, cash value grows faster in limited-pay plans since insurers concentrate premiums in the early years rather than spreading them over a lifetime. The following table summarizes the differences:

Limited pay vs. traditional whole life insurance

Feature	Limited pay whole life insurance	Traditional whole life insurance
Premium payment period	Pay premiums for a fixed payment term (5, 10 or 20 years)	Pay premiums for life (no fixed term)
Premium amount	Higher annual premiums due to the shorter payment term	Lower annual premiums spread over a lifetime
Cash value growth	Builds faster due to front-loaded payments	Gradual growth in cash value due to slower payment schedule
Ideal for	Business owners, high income earners, parents funding policies for children, pre-retirees, those who are focused on estate planning	Those who prefer smaller, ongoing premium payments and those seeking lower-cost lifetime coverage or using whole life for final-expense needs

If you choose limited pay, the next step is selecting the right payment schedule. Shorter terms cost more upfront but build value faster.

Comparison of 5‑pay vs. 10‑pay vs. 20‑pay

Feature	5-pay whole life insurance	10-pay whole life insurance	20-pay whole life insurance
Premium payment options	5 years	10 years	20 years
Annual premium	Highest (condensed into 5 years)	Moderate (spread over 10 years)	Lowest (spread over 20 years)
Cash value growth	Fastest	Balanced	Gradual
Ideal for	Those planning to finish payments very early and build wealth quickly	Those planning to complete payments before retirement or major milestones	Those who prefer lower annual payments with long-term flexibility
Availability	Limited	Widely offered by major insurers in Canada	Widely offered by major insurers in Canada

How to get the best limited pay whole life insurance quotes in Canada

Get the best limited pay whole life insurance quotes in three easy steps:

1) Tell us your age, health details, and desired coverage amount

2) Compare top-matched plans, payment terms, and cash value growth side-by-side

3) Lock in your rate with a licensed advisor from PolicyAdvisor, at no cost. You’ll need: basic health info and your preferred pay term (5-pay, 10-pay, or 20-pay)

Licensed PolicyAdvisor advisors will help you compare options, answer questions, and ensure your coverage aligns with your goals.

Frequently asked questions

What is limited pay whole life insurance in Canada?

Limited pay whole life insurance in Canada is a type of permanent life insurance policy that provides lifelong coverage and cash value growth while allowing you to pay premiums within a set term, typically 10 or 20 years. These are often called 10-pay or 20-pay whole life plans, depending on the payment term. Once the payment period ends, your policy is fully paid up, and your coverage continues for life with no additional premiums. The cash value in these limited-pay plans builds quickly because premiums are front-loaded, making these structures popular for Canadians who want to finish payments early or align them with retirement plans.

How does a 10-pay whole life insurance plan work?

A 10-pay whole life plan accelerates premium payments within 10 years while offering lifelong coverage. Cash value grows faster because premiums are paid early, making it ideal for Canadians who want to finish payments before retirement or other major goals.

How does a 20-pay whole life insurance policy work?

A 20-pay whole life plan spreads premiums over 20 years. Coverage continues for life after payments end, with steady cash value growth. This option suits Canadians who prefer smaller, manageable annual payments.

Which is better, 10-pay or 20-pay whole life insurance?

The better choice between 10-pay and 20-pay depends on your budget, financial goals and how soon you want to stop paying premiums. A 10-pay whole life plan suits Canadians who want to complete payments early. A 20-pay whole life plan works better for those seeking lower annual premiums and steady, long-term growth. While both offer lifelong protection and faster cash value accumulation, the best choice depends on each individual’s financial priorities and their personal comfort with premium amounts.

Do limited pay whole life insurance policies build cash value?

Yes, both 10-pay and 20-pay whole life insurance policies in Canada build tax-deferred cash value. Shorter payment plans like 10-pay typically grow faster because more premium is invested earlier.

Can I get participating limited pay whole life insurance in Canada?

Yes, many Canadian insurers, including Equitable Life, Manulife, Canada Life, Sun Life, RBC and iA (Industrial Alliance), offer participating whole life policies with limited pay plans. These plans pay tax-advantaged dividends that can enhance your policy’s cash value and death benefit over time.

Can I borrow money or withdraw funds from a limited pay whole life policy?

Yes, once your policy builds enough cash value, you can take policy loans or withdrawals. Interest accrues on loans; unpaid loans/withdrawals reduce values and death benefit.

How are dividends calculated in participating whole life insurance?

Dividends are calculated based on the financial performance of the insurer’s participating account. Each year, the insurer reviews the par account results and compares them to the assumptions that were used when premiums were originally priced. If the par account performs better than expected, a surplus is created, and a portion of that surplus is paid to policyholders as dividends.

How do I choose the best 10-pay or 20-pay whole life insurance plan in Canada?

Compare quotes and policy illustrations from top insurers. Look at premiums, projected cash value, dividend history, and flexibility to find the plan that best fits your income, goals, and coverage needs.

Who offers the best limited pay whole life insurance in Canada?

Leading providers such as Equitable Life, Sun Life, Canada Life, iA Financial, Manulife, Desjardins, Empire Life, RBC Insurance, and Wawanesa offer limited pay whole life insurance. Each offers flexible 10-pay and 20-pay options tailored for wealth building, estate planning, or early payment completion.

Can I buy a limited pay whole life insurance for a child?

Yes. Many insurers offer juvenile par whole life with 10‑pay/20‑pay options and guaranteed insurability features (availability varies by insurer).

How do dividends and Paid-up additions (PUA) work in limited pay whole life insurance?

Dividends are payments from your surplus generated by the participating accounts that can be taken as cash, reduce premiums, or buy Paid-Up Additions (PUAs). PUAs are small, fully paid-up insurance amounts that increase both cash value and death benefit. In 10- or 20-pay plans, dividends and PUAs continue growing your policy even after premiums stop.

When should I not choose a limited pay whole life plan?

Skip a limited pay whole life plan if compressed premiums strain your cash flow. For instance, a 10-pay plan may not suit you when you manage mortgage payments and childcare costs simultaneously. Choose term insurance instead for short-term needs, as it delivers the same face amount at a fraction of the cost; higher early premiums also hurt if you face unstable finances or major income shifts.

What are the most common mistakes people make with limited pay whole life?

Many applicants underestimate how high the premiums are in the early years. Others assume a 10-pay or 20-pay guarantees stronger returns, even though performance still depends on Dividend Scale Interest Rate (DSIR) trends and par fund results. Another mistake is ignoring riders like disability premium waivers that can protect the plan if income unexpectedly drops. Some buyers also lock into a limited pay plan without comparing cash values across insurers, leaving thousands in long-term value on the table.

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Cheapest life insurance in Canada (2026)

Life insurance doesn’t have to be expensive, especially if you know how to compare your options. Many Canadians are beginning to recognize the value of buying life insurance and taking a crucial step to protect the financial future of their families. According to the Canadian Life and Health Insurance Association (CLHIA), about 23 million Canadians have life insurance. This shows strong nationwide participation and reflects steady demand.

As more people buy coverage, insurers continue to compete on price, making it easier to find low-cost options. As demand grows, insurers continue to offer competitive rates, making it easier than ever to find affordable protection.

This 2026 guide explains Canada’s most affordable life insurance options, when each makes sense, and which providers often deliver competitive rates for different profiles. The following five providers stand out for competitive pricing and affordable term coverage.

Top five affordable life insurance providers in Canada (2026)

Manulife
Equitable Life
iA Financial Group
Sun Life
Canada Life

Age (in years)

Gender

Smoker

Yes

Coverage amount

What are the different types of life insurance in Canada?

Canada offers two main types of life insurance: temporary and permanent coverage. Each is designed for different financial needs and timelines.

Temporary life insurance (term life insurance) provides coverage for a fixed period, such as 10, 20, or 30 years. It’s typically the most affordable option and is ideal for short-term needs like income replacement or paying off a mortgage
Permanent life insurance: Provides lifetime coverage and includes two main options:

1. Whole life insurance: Offers guaranteed lifetime protection with level premiums and a guaranteed death benefit. Participating policies also build cash value and may pay dividends
2. Universal life insurance: Offers lifetime coverage with flexible premiums and an investment component. Suitable for long-term or advanced financial planning, with costs that vary based on investments and fees

Term life usually delivers the lowest premiums. Let’s explore in more detail in the next segment.

What is the cheapest life insurance policy in Canada?

Term life insurance is typically the cheapest life insurance policy in Canada because it provides pure protection without investment features. Term life offers the lowest premiums for temporary needs like mortgages or income replacement.

Unlike permanent life insurance plans that provide lifetime coverage and investment components, term life focuses solely on a death benefit, which keeps its premium low.

Several factors can reduce term life premiums, including:

Shorter coverage period
Lower coverage amount
Younger age at purchase
Good health/non-smoker status

Term life insurance premiums are lowest when you’re young and increase steadily with age. A healthy non-smoker in their 20s or 30s can often secure basic coverage for under $25 per month, while costs rise more sharply after age 40 and increase significantly in your 50s and 60s.

The sample monthly premiums below illustrate how rates vary by age and gender for a standard term life policy. Individual quotes will depend on health, coverage amount, and term length.

Cost of term life insurance for a 10-year period:

Age	Male	Female
20 years	$22/month	$14/month
30 years	$22/month	$15/month
40 years	$27/month	$19/month
50 years	$61/month	$45/month
60 years	$200/month	$145/month

*Illustrative monthly premiums for $500,000 term life insurance (10-year term) based on healthy, non-smoking males and females. Rates vary by insurer, age, and underwriting.

What is the cost of the cheapest whole life insurance policy in Canada

The cheapest whole life insurance policies in Canada typically come from non-participating plans.

Whole life insurance generally costs more than term life because it provides lifetime coverage and, for participating plans, includes a cash value component. If you’re looking for the most affordable whole life option, non-participating policies are typically the best choice.

The table below shows the cheapest $100,000 whole life premiums for healthy non-smoker males, by age and insurer.

Cheapest whole life premiums, Male ($100,000 coverage)

Age	Equitable	iA	Manulife
20	$680.61	$90.45	$1,059.00
30	$936.04	$120.06	$1,496.52
40	$1,333.79	$163.35	$1,798.92
50	$2,001.46	$236.25	$2,358.12
60	$3,194.96	$362.25	$3,399.24

* Premiums shown are illustrative annual rates for $100,000 of whole life coverage for healthy non-smokers, based on each insurer’s lowest-cost permanent plan. Actual premiums vary by underwriting, product design, and insurer pricing.

The table below shows the cheapest $100,000 whole life premiums for healthy non-smoker females, by age and insurer.

Cheapest whole life premiums, Female ($100,000 coverage)

Age	Equitable	iA	Manulife
20	$595.13	$79.65	$1,048.56
30	$818.47	$104.76	$1,475.64
40	$1,179.27	$142.02	$1,781.04
50	$1,729.47	$203.49	$2,308.92
60	$2,720.73	$312.84	$3,127.44

There are several factors you should think about when considering how much life insurance you may need.

Which are the cheapest life insurance providers in Canada?

Some of the cheapest life insurance providers in Canada are Manulife, Equitable Life, iA, Sun Life, and Canada Life, especially for term life insurance. Rates shift by age, coverage amount, health class, and province, so the cheapest insurer changes from person to person. No insurer ranks as the lowest for every profile.

1. Manulife

Manulife delivers competitive term life pricing across many customer profiles, but actual rankings shift by age, coverage, and product type. Their CoverMe Term Life Insurance targets budget-conscious buyers who want straightforward online quotes and basic, low-cost protection.

2. Equitable Life

Equitable Life delivers competitive pricing and flexible term options. Equitable Life offers Term 10 (T10), Term 20 (T20), Term 30 (T30), and select term options with competitive pricing, especially for younger non-smokers. Actual premiums and underwriting experience vary by applicant profile.

3. Sun Life

Sun Life provides a wide range of life insurance products, including affordable term life plans that cater to various budgets. Their term policies are known for offering strong value and flexibility, with options to convert to permanent insurance later. Sun Life’s easy-to-use online quote system simplifies comparing prices.

4. Canada Life

Canada Life is a trusted Canadian insurer and offers competitive life insurance options across many segments. Their term life insurance rates can be cost-effective depending on the applicant’s age, health class, and coverage amount.

5. iA Financial Group

iA Financial Group is often competitive for younger, healthy applicants with preferred risk profiles, though rates vary by age, health, coverage amount, and insurer. Their term policies offer flexible coverage, and digital applications are available through advisors or online platforms; fully direct-to-consumer online availability varies by product and province. iA also has simplified issue products that require no medical exams, making them ideal for those who want quick and easy approval.

Comparing term vs. whole life insurance: Which policy offers the most affordable coverage?

When comparing life insurance options, term life insurance offers the most affordable coverage in Canada because it provides protection without cash value or investment features. Whole life insurance provides lifetime coverage, a guaranteed death benefit, and cash value growth, with participating plans also offering dividends, making it ideal for estate planning and long-term wealth building.

Here’s a quick comparison between term life and whole life insurance in Canada to help you choose the ideal policy for your needs:

Term life vs. whole life insurance

Feature	Term life insurance	Whole life insurance
Cost	Lower premiums; most affordable option	Higher premiums; more expensive over time
Coverage length	Fixed term (10, 20, 30 years)	Lifetime coverage
Cash value	No cash value or investment component	Builds guaranteed cash value over time
Flexibility	Many term policies are renewable and convertible to permanent coverage within specified windows; riders can be added at issue, but cannot be changed outside these options once the term starts	Can include paid-up options and dividends (in some cases)
Pros	Affordable, simple, good for temporary needs	Lifetime protection, cash value, fixed premiums
Cons	Expires after the term, and no payout is made if you outlive the term	High cost, more complex, slower cash value growth early on
Best for	Young families, mortgage protection, short-term needs	Estate planning, lifelong dependents, wealth transfer

How can you get the most affordable life insurance premiums in Canada?

You can get the most affordable life insurance premiums in Canada by choosing the right policy type and applying while in good health. Working with an experienced broker helps you compare options across multiple insurers to find a policy that fits your budget. Here are steps you can take to lower your life insurance premiums:

Review your options before renewals: Instead of automatically renewing your current life insurance plan, compare to see if newer plans offer better rates or updated coverage suited to your current needs
Opt for individual life insurance: Buying personal life insurance is often more cost-effective and offers greater flexibility than mortgage insurance tied to a loan or lender
Choose term life insurance instead of permanent coverage: Term insurance is typically the most affordable option, providing fixed coverage for a set number of years without the higher premiums associated with lifelong plans
Complete medical underwriting if you’re healthy: Applicants in good health often receive much lower premiums when they complete a medical exam or health questionnaire during the underwriting process
Maintain a healthy lifestyle: Quit smoking, maintain a healthy weight, and manage chronic conditions to significantly lower your life insurance rates
Consult a licensed life insurance advisor: Speaking with an advisor (such as our experts at PolicyAdvisor) allows you to compare quotes from multiple insurers and identify the most affordable policy based on your age, health, and financial goals

list of factors that affect the cost of life insurance

What are the cheapest life insurance options for seniors?

Seniors can find the cheapest life insurance in Canada through traditional term life or no-medical exam policies. While the life insurance premiums for seniors are higher due to age and health risks, they can still find affordable coverage by comparing plans and choosing basic coverage amounts.

Life insurance premiums for seniors vary widely by age, coverage amount, product type, and underwriting results. Life insurance costs increase with age, but the type of policy also affects pricing. Term coverage is typically cheaper at younger senior ages, while permanent options like whole life may offer more stable pricing later on. For example, a healthy 60-year-old may pay about $55 per month for a 10-year term policy or around $149 per month for whole life coverage. Rates rise further in your 70s and 80s, especially for term insurance. The sample premiums below show how costs change by age and policy type.

To get the cheapest life insurance rates for seniors, it’s important to compare quotes from multiple providers and consider simplified or no-medical exam options that offer fast approval and reduced underwriting.

Cost of life insurance for seniors:

Age	10-year term policy	Whole life policy
50 years	$35/month	$111/month
60 years	$55/month	$149/month
70 years	$101.76/month	$99/month
80 years	—	$376.29/month

*Illustrative monthly premiums for $100,000 coverage based on a healthy, non-smoking female. Actual rates vary by insurer and health profile.

What are the cheapest life insurance options for individuals with pre-existing conditions?

Individuals with pre-existing conditions can access affordable life insurance through no-medical, guaranteed-issue, or simplified-issue policies. These plans do not require medical exams and offer fast approval, making them accessible to those who may not qualify for traditional coverage.

Some of the top providers offering no-medical exam or guaranteed-issue life insurance in Canada include Manulife, Sun Life, Empire Life, Canada Protection Plan, iA Financial Group, and Assumption Life.

These policies typically fall into two categories:

Guaranteed-issue: Usually imposes a two-year waiting period for non-accidental death
Simplified-issue: Often provides immediate coverage or deferred variants with waiting periods, depending on the product

Both types generally offer immediate accidental death coverage and approval regardless of health status.

These plans often cover individuals with stable pre-existing conditions, such as:

Diabetes with complications
Heart disease or recent heart surgery
Cancer history (recent or in remission)
Chronic obstructive pulmonary disease (COPD) or other chronic respiratory conditions
Mental health disorders such as major depressive disorder or bipolar disorder
Liver or kidney disease

Insurers evaluate eligibility based on specific conditions, recency, and severity, which may lead them to decline coverage, impose waiting periods, or apply deferred benefits.

What is the most affordable life insurance option for smokers?

Smokers can get the most affordable life insurance in Canada with a term life policy. Although smokers pay higher premiums than non-smokers, term life still provides the lowest rates compared with other types of life insurance.

Premiums for smokers reflect the increased health risks and shorter life expectancy associated with tobacco use. For example, a 30-year-old smoker in average health may pay over $60 per month for a 20-year term life policy with $500,000 in coverage. Alternatively, a non-smoker of the same age would pay around $30 per month for the same policy.

Some of the best life insurance companies, like Canada Life, Manulife, Sun Life, and iA Financial Group, offer competitive term life policies for smokers. While premiums are higher, term life insurance remains the most budget-friendly life insurance option for smokers seeking substantial coverage at manageable rates.

Learn more about the best life insurance options for smokers in Canada

What are the common mistakes to avoid while getting the cheapest life insurance plan?

The biggest mistakes Canadians make when buying the cheapest life insurance are focusing only on price and choosing a policy that doesn’t meet their long-term needs.

Keeping premiums low is important, but your policy should also provide adequate coverage. Balancing affordability with protection ensures you don’t compromise on your family’s financial security.

If you want to avoid compromising on protection, you need to strike the right balance between affordability and value.

Here are the most common mistakes to avoid when choosing a low-cost life insurance plan in Canada:

Choosing the lowest premium without reviewing coverage details: A cheap plan might come with limited coverage or shorter terms that don’t align with your financial responsibilities
Ignoring policy exclusions and fine print: Failing to read the terms can lead to claim denials or uncovered situations when your family needs support the most
Delaying your purchase to get a better rate later: Life insurance only gets more expensive as you age or develop health issues, and waiting can cost you more in the long run
Underinsuring to save money: Choosing a lower coverage amount to reduce premiums may not be enough to support your family’s needs after you’re gone
Not disclosing your full medical history: Hiding or misrepresenting health conditions can result in policy cancellation or denied claims
Overlooking convertibility options: Some term plans allow you to convert to permanent coverage later, and missing out on this can limit your flexibility as your needs change
Skipping a quote comparison across insurers: Life insurance prices and features vary widely. Not shopping around may lead you to overpay or miss better, cheaper options

How can you apply for the most affordable life insurance plan in Canada

You can apply for the most affordable life insurance in Canada by comparing top insurers and choosing a policy that fits your budget and coverage needs.

At PolicyAdvisor, we partner with more than 30 top Canadian insurers, including Manulife, Canada Life, and Sun Life, so you can compare the cheapest rates side by side.

Once you find the right policy, you can apply online instantly or speak with a licensed advisor for personalized support. PolicyAdvisor also provides reliable after-sales assistance, helping you manage your policy after purchase. Schedule a call to get life insurance quotes tailored to your needs.

Frequently asked questions

What is the cheapest type of life insurance policy?

The cheapest type of life insurance is term. The shorter the term, the lower the premium. Cost also depends on factors such as your personal health history, family medical history, coverage amount, and more.

What is the lowest death benefit I can get?

The lowest death benefit available in Canada depends on the insurer and product. Many term policies have minimum coverage of $100,000, while some simplified or term offerings start at $50,000. Whole life or final-expense/guaranteed life policies can provide smaller amounts, typically $5,000–$25,000, with $10,000 being common; some insurers allow minimums as low as $5,000 for end-of-life or estate planning purposes. You should compare online insurance quotes before buying just the minimum, as policies with higher coverage may cost little more, or sometimes even less, than the lowest option.

What is a 1-year life insurance policy?

A 1-year life insurance policy is a term life insurance product where your term is for one year. If you die within that year, the insurance company will pay your beneficiaries a tax-free death benefit. You may also see these called annual renewable term policies. These kinds of policies usually seem great at first glance because their premiums are very low. But read the fine print before you buy. Every year you renew this policy, your premiums will increase. Over time, you’ll end up paying a lot more than if you just got a policy with a longer term.

What is the most expensive life insurance policy in Canada?

Permanent insurance and no-medical exam insurance are the most expensive types of insurance policies. A permanent policy gives you lifelong coverage and a cash value component. You can use this cash value to access growth and build wealth during your lifetime.

No-medical-exam insurance helps applicants who may not qualify for fully underwritten coverage. Guaranteed-issue plans approve all applicants, though they usually have a waiting period for non-accidental death. Simplified-issue plans ask health questions and may decline applicants; coverage is not guaranteed. Premiums are higher because insurers take on more risk.

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BMO whole life insurance review (2026)

BMO whole life insurance offers Canadians a choice between two permanent, non-participating policies, Estate Protector and Wealth Accelerator. These plans are offered through BMO Insurance, backed by one of Canada’s oldest and largest banks. In fact, both plans guarantee cash values, provide level premiums, and offer the potential for an increasing death benefit.

Notably, these plans stand out for their annual Performance Bonus (5.75% for May 2025–April 2026), increasing both the death benefit and cash value without relying on traditional participating dividends. Additionally, this bonus automatically purchases paid-up additions, which increase your policy’s death benefit and total cash value.

Moreover, BMO Insurance holds an A (Excellent) rating from A.M. Best and reported insurance net income of $95 million. As a result, the insurer’s in-house asset management expertise further strengthens the long-term reliability of its non-participating whole life insurance products.

In this review, you will learn about how BMO’s non‑par designs work, compare Estate Protector vs. Wealth Accelerator, and discover which plans fit your goals.

Best for non-participating whole life insurance

☆☆☆☆☆

★★★★★

PolicyAdvisor rating

Plans offered

Estate Protector
Wealth Accelerator

Payment options

10-pay
20-pay
pay to 100 Male

A.M. Best financial strength rating

Performance bonus rate

5.75%

PolicyAdvisor Rating

We give BMO whole life insurance 4 out of 5 for its non-participating design featuring an annual Performance Bonus and smoothing mechanism. The company grows cash value through this bonus, with rates declared annually and never negative.

The bonus is funded by a diversified portfolio managed by BMO Asset Management and BMO Capital Markets and is smoothed to reduce volatility. It automatically buys paid-up additions (PUAs), increasing both the death benefit and cash value without extra premiums. While bonus rates may change each year, this structure provides more stable growth than traditional dividend-based participating policies.

Age (in years)

Gender

Smoker

Yes

Monthly Contribution Budget

BMO offers two non-participating options:

Estate Protector: designed for long-term estate planning
Wealth Accelerator: focused on higher early cash values and liquidity

8-year average: 5.63% (non-negative)

Overall, the average performance bonus rate over more than 8 years is 5.63% (non-negative). However, future bonus rates are declared annually and may change.

BMO’s Performance Bonus track record from May 1, 2017 to April 30, 2026

Year	BMO whole life insurance rate
May 1, 2017- April 30, 2018	5.50%
May 1, 2018 – April 30, 2021	5.75%
May 1, 2019 – April 30, 2025	5.50%
May 1, 2025 – April 30, 2026	5.75%

BMO Insurance portfolio breakdown

From a portfolio standpoint, BMO Insurance allocates 69.1% to fixed income managed by BMO Asset Management Inc., providing steady income with low volatility. Meanwhile, Capital Markets handles the remaining 30.9% in enhanced equity via option strategies that limit downside risk.

Rating Methodology

PolicyAdvisor rates BMO whole life insurance 4/5 as the best non-participating plan based on six key factors: early/long-term cash value growth, premium options, bonus stability, fees, riders, and issue ages.

	2022	2023	2024	2025
Equitable	6.05%	6.25%	6.40%	6.40%
Manulife	6.10%	6.35%	6.35%	6.35%
iA Financial Group	5.75%	6.00%	6.25%	6.35%
Desjardins Insurance	5.75%	6.20%	6.30%	6.30%
RBC Insurance	6.00%	6.00%	6.25%	6.30%
Sun Life	6.00%	6.00%	6.25%	6.25%
Empire Life	6.00%	6.00%	6.00%	6.25%
Foresters Financial	5.50%	5.50%	5.50%	6.25%
Co-operators	5.90%	5.90%	6.00%	6.00%
Assumption Life	5.75%	5.75%	5.75%	5.75%
Canada Life	5.25%	5.50%	5.50%	5.75%

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BMO whole life insurance costs and value

This example shows the projected premiums, cash value growth, and death benefit for a 30-year-old non-smoker female purchasing $100,000 of BMO whole life coverage with life pay and paid-up additions (PUA).

Projected premiums, cash value, and death benefit over time

Policy year	Age	Annual premium paid	Total premiums paid	Total cash value	Death benefit
0	30	$1,230	$1,230	$0	$100,000
10	40	$1,230	$12,300	$3,017.95	$103,756
20	50	$1,230	$24,600	$21,481.70	$128,955
30	60	$1,230	$36,900	$58,212.50	$180,524
40	70	$1,230	$49,200	$116,483.03	$246,237
50	80	$1,230	$61,500	$195,239.13	$313,526
55	85	$1,230	$67,650	$245,806.32	$345,336
60	90	$1,230	$73,800	$299,064.59	$376,057

* Values shown are non-guaranteed illustrations based on current assumptions and the insurer’s projected performance bonus scale. Actual premiums, cash values, and death benefits may vary. This example is for informational purposes only and does not constitute a policy guarantee.

Pros and cons of BMO whole life insurance

In particular, BMO whole life Insurance plans combine guaranteed benefits with flexible features, while some limitations may impact your decisions depending on your goals.

Pros:

Annual performance bonus purchases paid-up additions to grow death benefit and cash value
Guaranteed cash values with level, predictable premiums
Flexible payment terms (10-pay, 20-pay, or pay to age 100) and premium switch available after year 2
Access cash value through policy loans or withdrawals
Premium offset stops out-of-pocket premiums while maintaining coverage
Backed by BMO Wealth Management’s diversified portfolio and institutional oversight
BMO Asset Management and Capital Markets deliver stable, smoothed returns

Cons:

As a non‑par policy, it does not share in participating surplus or dividends. Growth relies on guaranteed values plus the declared Performance Bonus (non‑negative, not fixed)
Flexible options such as premium switch, premium offset, additional payments have conditions and may trigger tax, or impact policy values
An annual policy fee (currently $50 while base premiums are payable) increases total cost slightly

Beyond these pros and cons, BMO’s two plans, Estate Protector and Wealth Accelerator, offer tailored features for different goals. Explore the details below.

BMO whole life insurance products and features

BMO offers two distinct options, including Estate Protector and Wealth Accelerator.

Estate Protector is designed for clients focused on long-term estate growth and wealth transfer, combining sustained cash value with increasing death benefits
Wealth Accelerator is aimed at individuals and business owners who want higher initial cash values and early liquidity to support financial flexibility in the first years of coverage

Both plans provide guaranteed cash values, level premiums, and the potential for an increasing death benefit through the annual Performance Bonus. Both non-participating plans offer the following:

Guaranteed level premiums
10‑pay, 20‑pay, or to age 100
Premium Switch available after year 2 (conditions apply)
Annual non‑negative performance bonus buys paid‑up additions
Optional riders: Term (10–30 years), critical illness, accidental death, children’s term, waiver of Premium
Health Advocate Plan included (medical information and support services)

Key features of BMO whole life insurance

Feature	Details
Plan options	Estate Protector, Wealth Accelerator
Payment terms	10-pay, 20-pay, to age 100; Premium Switch after year 2
Issue ages	0-80 (nearest age)
Coverage amounts	$50,000 ($25,000 for term conversions); maximum subject to underwriting
Performance bonus	Annual, non-negative (5.75% for May 2025 to Apr 2026)
Riders	Term 10-30 years, critical illness, accidental death, children’s term, waiver
Policy loans	Up to 90% cash value; taxable implications may apply
Additional benefits	Health advocate plan

In addition to strong performance bonuses that grow your coverage and cash value annually, BMO prioritizes policyholders’ convenience through these client-focused features:

Premium offset and policy loans can reduce out-of-pocket costs once sufficient cash value exists (conditions and interest apply; may reduce policy values and death benefit)
Health Advocate Plan provides second opinions and navigation support
Policies are designed to remain exempt under Canada Revenue Agency (CRA) when kept within Maximum Tax Actuarial Reserve (MTAR) limits
Premium Switch becomes available after the second policy year; switching premium schedules may reduce, maintain, or increase future premiums
Policy loans typically up to 90% of cash value; tax implications and interest may apply

Read about the best whole life insurance companies in Canada.

Estate Protector vs. Wealth Accelerator

BMO’s two non-participating whole life products are designed for different goals, but both offer guaranteed cash values, level premiums, and the potential for growth through the annual Performance Bonus. The table shows how Estate Protector stands in comparison to Wealth Accelerator through the lens of this table.

Feature comparison at a glance: Estate Protector and Wealth Accelerator

Feature	Estate Protector	Wealth Accelerator
Key focus	Long-term estate planning/wealth transfer	Early liquidity/business cash flow
Cash value accumulation	Exceptional long-term growth	Higher upfront values
Death benefit growth	Superior over time	Steady, cash-prioritized early
Ideal for	Affluent/estate planning	Business owners/investors
Payment terms	10-pay, 20-pay, pay to age 100	10-pay, 20-pay, pay to age 100
Performance bonus	Yes	Yes
Riders available	Term 10-30, critical illness, accidental death benefit, children’s, waiver	Term 10-30, critical illness, accidental death benefit, children’s, waiver
Issue ages	0-80	0-80

Who should consider BMO whole life insurance

BMO whole life insurance suits those seeking lifelong protection with built-in growth and flexibility. PolicyAdvisor rates BMO Insurance 4/5 for its non-participating design that matches participating plan returns without dividend uncertainty. Ultimately, you should consider BMO whole life insurance if you:

Want predictable, permanent coverage with growth
Are planning for estate transfer or charitable giving
Prefer flexible premiums and access to cash values
Run a business and may use policy values as collateral (subject to lender rules)

How to buy BMO whole life insurance with PolicyAdvisor

Ready to explore BMO Whole Life insurance? Get a personalized BMO whole life illustration and compare it to top Canadian insurers with PolicyAdvisor’s licensed experts.

Get covered in three easy steps:

1. First, speak with a licensed PolicyAdvisor expert

2. Then, review BMO Estate Protector vs. Wealth Accelerator alongside top competitors

3. Finally, receive a personalized illustration and finalize your application online

PolicyAdvisor licensed experts help you compare options and find the perfect plan for your goals.

Frequently asked questions

Is BMO whole life insurance a participating plan?

No. BMO offers two non‑participating designs, Estate Protector and Wealth Accelerator. Instead of dividends, BMO declares an annual Performance Bonus (non‑negative by design) that buys paid‑up additions and can increase policy values. Bonus rates are declared each year and may change.

How does BMO calculate bonuses and cash values?

BMO declares a Performance Bonus annually, informed by diversified fixed income and enhanced equity exposure with return smoothing. The bonus will not be negative. However, future rates may change. Paid‑up additions purchased by the bonus increase policy values, subject to policy rules and taxation if values are accessed.

Can I access my policy’s cash value in BMO whole life insurance plans?

Yes. You can borrow against cash value (interest applies), make withdrawals, or use premium offset once values are sufficient. These actions can reduce cash value and death benefit and may have tax implications. Bonus crediting continues per policy terms, but net growth may be impacted by loan interest and policy charges.

What differentiates Estate Protector from Wealth Accelerator?

Estate Protector favours maximum estate value and long‑term death benefit growth. Wealth Accelerator on the other hand, favours higher early cash values, often preferred by business owners or investors needing earlier liquidity or collateral potential. An advisor can show both on a side‑by‑side illustration for your age and health class.

Who manages the investments backing my BMO whole life insurance policy?

BMO Asset Management and BMO Capital Markets oversee a diversified portfolio (primarily high‑quality fixed income with enhanced equity exposure via options). The goal is stable, smoothed returns to support the annually declared, non‑negative Performance Bonus that purchases paid‑up additions. Future bonus rates are not guaranteed.

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© PolicyAdvisor Brokerage (PAB) Inc., is an insurance brokerage licensed to sell life insurance products in Ontario, British Columbia, Alberta and Manitoba. Not available in other provinces. Policy obligations are the sole responsibility of the issuing insurance company. Issuance of coverage is subject to underwriting by the respective insurance company. Please see policy documents for full terms, conditions, and exclusions. The logos and trademarks used here are owned by the respective entities. Refer to our Privacy Policy and Terms of Service sections for additional information.

Whole life vs. RRSP vs. TFSA: Which builds more wealth in Canada?

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Frequently asked questions

Is whole life insurance better than investing in RRSPs or TFSAs?

Why do high-income Canadians use all three accounts?

Can whole life insurance outperform market investments?

Is it true that RRSPs are taxed heavily at death?

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Canada Life whole life insurance review (2026)

PolicyAdvisor rating

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Need insurance answers now?

Canada Life whole life insurance costs and value

What are the benefits of Canada Life’s whole life insurance?

Types of whole life insurance offered by Canada Life

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Highlights of Canada Life’s whole life insurance policy document

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How are dividends for Canada Life’s participating policies distributed

Dividend Scale - Participating Whole Life Insurance

How are Canada Life whole life insurance premiums invested?

How Canada Life’s participating account has performed over time

Are “par” account investments affected by market conditions?

How can I access my Canada Life whole life cash value?

What additional benefits or riders does Canada Life offer on their whole life plans?

How to apply for Canada Life’s whole life insurance with PolicyAdvisor?

Frequently asked questions

Is Canada Life’s whole life insurance worth it?

Does Canada Life offer participating policies with dividends?

Do I need medical underwriting for a Canada Life whole life insurance plan?

How does the Canada Life participating account work?

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Initial Death Benefit

How does an IFA work in Canada?

Canadian lenders offering an immediate financing arrangement

Equitable Bank IFA

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What is IFA in Canada?

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Is IFA interest tax-deductible?

Biggest life insurance companies in Canada: A complete guide (2026)

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Initial Death Benefit

Largest Life Insurance Companies in Canada (2026)

1. Sun Life

2. Manulife

3. Desjardins

4. Canada Life

5. iA (Industrial Alliance)

6. Knights of Columbus

7. RBC Insurance

8. Beneva

9. BMO

10. Empire Life

11. Foresters