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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.
Wealth Select
My Par Gift
20-pay
pay-to-100
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.
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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.
| 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
| 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 |
|
|
| 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 |
|
|
| 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:
| 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 |
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.
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.
Dividend Scale - Participating Whole Life Insurance
Compare dividend rates from top Canadian insurers
| 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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| 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
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
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.
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
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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 |
|
| Collateral | CSV of a whole life policy from an approved carrier |
| Approved insurance carrier |
|
| 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 |
|
| Collateral |
|
| Approved insurance carrier |
|
| 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 |
|
| Collateral |
|
| Approved insurance carrier |
|
| Loan amount | $50,000 minimum |
| Premium frequency | Annual |
| Loan repayment | Any time |
| Application fee |
|
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 |
|
| Available structures to choose from | Program 1 and Program 2 | 100% CSV lending and 100% replacement of premium | 3 primary structures:
|
| Approved insurance carriers |
|
|
|
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.
How to set up an immediate financing arrangement (IFA) in Canada?
An immediate financing arrangement can help you pursue specific financial goals. The process can feel daunting if you are unsure where to start.
If you have done some preliminary research and want to explore whether an IFA is right for you, then this article will help you learn how to get started, what you’ll need, and what to expect.
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Steps to set up an immediate financing arrangement in Canada
To start an immediate financing arrangement, follow these steps:
Step 1: Assess your financial needs
Before you proceed with an IFA, outline your goals and build a financial plan with a licensed insurance advisor.
An experienced licensed insurance advisor can work alongside your accountant and provide invaluable guidance in navigating the financial implications of an IFA effectively. To begin, assess key factors such as: the amount of life insurance you need; premium amounts; premium and interest payment frequency; the financing amount required; and potential lenders.
Step 2: Apply for a permanent insurance policy
For an IFA, you will need a whole life insurance policy (or a universal life insurance policy) with a suitable death benefit and cash value. We can help you find the whole life policy that works best for the immediate financing strategy you want to set up. For IFA, you would typically need a policy that can grow cash value in the early years. Our advisors will run various structures for you to set up a policy structure that meets your cash value and projected death benefit needs.
Step 3: Contact your bank, lender, or financial institution
Once you have bought the insurance policy, you should choose a Canadian bank, lender, or financial institution you want to borrow from. Based on your request, the lender may ask for a minimum loan amount, an insurance policy from only an approved life insurance company, and proof of strong cash flow. Apply for up to 100% of the cost of life insurance premiums you paid in Step 2, or up to 100% of the projected cash surrender value in your insurance illustration.
Expert Tip
Step 4: Assign collateral
When you apply for the line of credit, tell your lender that you want to use your whole life insurance policy as collateral. You and your lender execute a collateral assignment of the life insurance policy. This means that you agree that your life insurance policy will be used by the lender if you are unable to pay back the loan proceeds. You do not change the beneficiary; the beneficiary named in Step 2 remains the same.
Step 5: Get financing
The next step is to wait for the lender to process your application. The lender will let you know when they approve your application. This can be immediate or take a few days, depending on the lender. The lender can ask for additional collateral if they need extra security, depending on how much you are borrowing. They will contact you to ask what other assets you can use as collateral, such as real estate or investments. You and your lender agree on terms such as the interest rate, interest payment frequency and amount, repayment terms, and the draw schedule. After your application is completed and the terms have been mutually agreed to, you can get instant access to the financing.
Step 6: Reinvest
Use the loan for investment or business growth according to your plan. Borrowed funds are generally not taxable; however, investment returns may be taxable. Interest may be tax-deductible in Canada if the borrowed money is used to earn business or property income, and other conditions are met.
Step 7: Uphold loan terms
Now that the agreement has been made and you have the loan proceeds, you have to live up to your part of the arrangement. This varies depending on the agreement you have with your bank or lender. You must pay the interest monthly, make loan drawdowns according to the schedule you agreed to, and pay off the loan according to the schedule you agreed to.
Remember that the lender holds your life insurance policy and possibly other assets as collateral. If you breach the terms, the lender may realize on the collateral, including recovering from the policy’s cash value or reducing the overall death benefit.
Step 8: Annual review
If you have a line of credit that has to be revisited every year, your lender might want to check on the policy performance, loan repayment status, additional collateral security requirements, as well as your financial health. They may also revisit annual renewal fees to determine if they will stay the same or not.
Do I need to do anything else to set up an IFA?
Yes, while the 8 steps covered above are standard, you may have additional steps to take. But these steps are optional and can vary, depending on the agreement you have with your lender. It may be different for everyone, so not everyone who gets an IFA may have to take the steps below.
In many cases, an IFA strategy is established with the understanding that it will be paid off after the borrower dies. However, this is not always the case.
- Repaying the loan during your lifetime: If you choose to pay the loan off early, you can make regular loan payments the same way as you would with any loan or financing arrangement. You would pay regular interest payments, plus pay back the amount you borrowed as annual deposits or as a lump sum at any point in time. If you go with this option, your beneficiaries get the full policy proceeds from your life insurance after you pass away.
- Repaying the loan after your death: If you don’t want to worry about paying back the IFA right away, you can also let it be paid back as a deduction from your death benefit. You still have to make interest payments during your lifetime. Once you pass away, any outstanding loan balance would be deducted from your insurance policy’s tax-free death benefit. Keep in mind that this will mean less money for your beneficiaries, though.
Things to keep in mind when you set up IFA in Canada
When setting up IFA in Canada, listed below are a few things that you need to keep in mind:
- Choose the right permanent life insurance policy that will be helpful in meeting your borrowing needs
- Check the loan limits and other terms and conditions, as they will vary from lender to lender
- Be prepared with the necessary documents, including policy document, income proof, lender-required forms, etc
- Keep the policy performance in check, as the dividend scale fluctuations can affect the borrowing power and loan sustainability
- Understand the loan repayment options with your lender
- Keep an alternate plan ready for potential rising rates, lender terms, or any unforeseen financial difficulties
How long does an IFA take to process?
The processing time for an IFA application depends on the lender. Usually IFA applications are approved within 1 to 3 weeks.
Once you’re approved, financing comes through right away. There’s no waiting period — that’s why it’s called immediate financing, after all.
Contact a professional
If you’re interested in starting an IFA, you should speak to an expert to make sure you have your ducks lined up in a row. An IFA strategy can have many benefits for business owners and other high-income earners in Canada. But you don’t have to decide alone.
Schedule some time with one of our insurance professionals and we’ll be happy to help you figure out if an IFA could be right for you.
FAQs about how to set up an immediate financing arrangement
Do I pay bank fees for an IFA?
Yes, banks and lenders typically charge a flat fee for an immediate financing arrangement. This is separate from interest payments. The flat fee is typically about $500 to set up the IFA. Always confirm set-up fees, legal costs, renewal fees, and interest rate terms before you proceed.
Depending on the loan amount, the initial fee may be waived by the lender. Ask what the charges will be before you decide who to go with.
What kinds of insurance policies can be used to set up an IFA?
Your insurance options for an IFA are:
- A participating permanent life insurance policy
- Cash value universal life insurance, but that comes with more risks and complications
What is an immediate financing arrangement?
An Immediate Financing Arrangement (IFA) pairs a permanent life insurance policy with a bank loan secured by the policy. You fund the premium, assign the policy as collateral, and borrow against its value to redeploy capital, commonly used by high-income individuals and business owners seeking liquidity, potential interest deductibility, and long-term estate value.
What are the biggest immediate financing arrangement (IFA) risks in Canada?
An immediate financing arrangement or IFA can be a convenient strategy for people with high incomes, but there are risks involved. While an IFA can offer liquidity, tax advantages, and long-term wealth benefits, it also has some complexities that may not suit every investor. Keep reading to find out what those risks are and how you can best avoid them.
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What are the risks of an immediate financing arrangement?
Some of the biggest risks of using your life insurance policy for an immediate financing arrangement are:
Dividend scale fluctuations in the life insurance policy
Fluctuations in the dividends of a life insurance policy pose risks for an IFA by impacting the policy’s cash value growth. If dividends decrease or fail to meet the current projected dividend scale, the cash value may not accumulate as projected, potentially leading to insufficient funds for future collateral loan drawdowns.
If the dividend scale decreases, the policyholder may also need to fund more premiums out-of-pocket to keep the policy in force and maintain the desired death benefit level. This can strain financial resources and disrupt long-term planning, requiring policyholders to adjust their access to cash flow from the IFA and potentially delay debt repayment strategies.
Growth fluctuations
Most IFAs come with the expectation that your business growth will pay for the interest charges you’re responsible for. The biggest risk arises if you end up having a lower rate of return than expected. If returns aren’t sufficient to cover your interest, you could have out-of-pocket costs for those fees, and that’s financial capital you could have put to better use.
Changing loan interest rates
If interest rates or floating loan rates increase, the bank will pass that on to you. Just like with growth fluctuations, increasing interest could also leave you paying out more than you are bringing in. This can have a fairly significant impact if the interest is being capitalized. Depending on your arrangement, your lender could potentially also ask you to provide additional collateral to make up for the higher interest build-up than the projections.
Change in lender terms
An IFA is offered through a financial institution like a bank or third-party lender, and they can change the terms of the agreement in the future at their discretion.
Lower death benefit
Most IFAs are made to be paid out of your death benefit when you pass. But you should keep an eye on this. Remember, the entire point of life insurance is to give your surviving family a lump sum they can use to offset estate taxes or for anything else. Be careful that the amount deducted from your death benefit proceeds doesn’t leave your family without enough funds for their purposes.
Unexpected changes in your financial situation
A sudden sickness, injury, disability or other unexpected event could impact your ability to earn income and keep up with IFA interest payments or other loan obligations. Some lenders ask for proof of sufficient income to justify the credit every year, and a sudden drop in your income could impact that.
Loss of collateral or assets
Sometimes, a bank or external lender may ask for additional collateral for your IFA agreement with them. If you are unable to pay in the long run, they could acquire those assets entirely.
Fees
Depending on which bank or third-party lender you choose, there may be fees associated with an IFA. You should ask about these upfront and read the agreement’s details to make sure you are aware of any possible charges, late fees, admin fees, etc.
Possible credit impact
When you apply for an IFA, it can appear on your credit report. This may impact your credit score or the creditworthiness of your business, or have other far-reaching implications.
Change in tax laws and CRA interpretations
Tax regulations undergo frequent changes, leading to variations in how loans, interest deductions, and life insurance policies are treated over time. With the General Anti-Avoidance Rules (GAAR) in place, the Canada Revenue Agency (CRA) has the authority to classify a collateral loan as a policy loan, resulting in distinct tax consequences.
Each loan possesses its own distinctive attributes, making it essential for the policyholder to thoroughly assess the reasons behind obtaining a collateral loan. Moreover, given the intricate and ever-evolving nature of the tax landscape, consulting with a tax advisor is strongly recommended before proceeding with the transaction.
Why do people get immediate financing arrangements?
High-income earners in Canada use IFAs as a convenient way to get the benefits of life insurance coverage while also getting liquid assets right away.
It’s especially useful for business owners, private corporations, and other high-net-worth individuals. With an IFA, they can access immediate access to capital without tapping into current income.
Common uses for an IFA
Most people use the proceeds from an IFA for:
- Recouping insurance premium payments
- Estate planning or estate equalization
- Instant cash flow (and the flexibility that affords)
- Business continuity planning
- Real estate purchases
- Investment opportunities
- Small business capital
- Funding a buy-sell agreement
- Other business purposes
In a way, an IFA lets you recoup the amount you paid in premiums, so you can use those funds for revenue-building ventures. You can then use those returns for interest payments on the agreement.
How to avoid immediate financing arrangement risks?
We, as insurance professionals, understand the risks involved with immediate financing arrangements in Canada, even though they can’t be entirely avoided. Having said that, you can certainly mitigate the risks of getting immediate financing. Here are some tips on how to avoid IFA risks:
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Research and think carefully
An IFA is a great financial strategy that works best when you spend some time mapping out how you want it to work. Start by thinking about the risks that may be involved and if the benefits of an IFA are worth it, based on your circumstances.
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Work with professionals
For a complex strategy like an IFA, we strongly recommend that you speak with an experienced, licensed professional who can provide expert insurance insights.
Even if you haven’t made up your mind yet, but you’re just thinking about your options, you might want to speak with both your insurance provider and your accountant. They can help you avoid as many risks as possible and make the most informed decision to achieve your goals.
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Be open to alternative arrangements
IFAs offer attractive benefits, but they’re not for everyone. If an IFA isn’t the best strategy for you, you can look for alternative financial arrangements. A licensed advisor will give you guidance about other products that best fit your needs. There may be other strategies or products you don’t even know about, but that are just what you’re looking for.
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Understand the fine print
One of the best things about immediate financing arrangements in Canada is the flexibility, in that no two agreements are the same. But you should pay close attention to all of the terms and conditions laid out in your agreement with your lender.
Agreements can vary between lenders and even individuals, so you should make sure you fully understand exactly what you’re getting into before you commit. This is another area where you can rely on expert advice to make sure you clearly understand the details of your loan arrangement.
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Borrow responsibly
With IFAs, your maximum loan amount is up to 100% of your annual life insurance premiums or the estimated cash surrender value amount stated in your life insurance illustration. This is a significant capacity that can be beneficial for high-net-worth individuals who need a large amount of insurance coverage.
But, remember to find balance. The outstanding loan balance will be deducted from your life insurance proceeds, so it’s best to avoid getting an IFA for an amount so large that it cuts too much into the funds you intend to leave behind for your beneficiaries.
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Tax documentation
Document the use of funds and maintain tracing for deductibility. Keep invoices/statements, and get a written tax opinion before relying on interest deductions. Review annually as rules change.
Is getting an IFA risky in general?
Yes, an IFA can be a risky and complex financial strategy for the reasons we highlighted in this article. But this is not uncommon. Many financial and insurance strategies come with varying degrees of financial risk.
The more important question is what your risk appetite is like, and where an IFA fits on that scale. This is why we always recommend that you speak with a professional before deciding to start an IFA. An experienced advisor can help you ensure your IFA works as planned and gives you maximum benefits.
Let’s understand this with a case study:
Situation:
Meet Alex, a high-income business owner who wants to provide his family with estate tax protection after his passing, while keeping most of his capital working in the business.
Insurance needs:
Alex chooses a high-value whole life insurance policy for long-term benefit and protection. However, he prefers not to have large annual premiums drain his company’s operating cash.
Risks associated with IFA:
Alex uses an Immediate Financing Arrangement (IFA), borrowing 100% of the premium from a bank using the policy as collateral. This delivers instant liquidity but also has some risks:
- If policy dividends fall short, cash surrender value or CSV may not grow as projected, and the bank could demand additional collateral or limit future loans
- Loan interest rates may increase, raising monthly costs unexpectedly and reducing Alex’s profits
- If lender terms change, Alex may have to post extra collateral or repay part of the loan
- If business revenues fall or Alex’s personal finances change, making loan interest payments can become difficult, risking the forced surrender of the policy
How to mitigate the risks: Here’s how he can mitigate the risks:
- Borrow less than 100% of premiums to deal with fluctuating dividend rates
- Keep a surplus in case the return is lower than expected
- Diversify investments funding interest payments to avoid over-reliance on single returns
- Set a target payoff date for loans to protect the net death benefit
- Use gains to support loan payments, but must closely monitor with a financial advisor to mitigate the risks associated with IFA
Speak with a professional
If you’re thinking about starting an immediate financing arrangement, speak with one of our licensed insurance advisors.
As Canada’s best online insurance broker, we work with more than 30 of Canada’s best life insurance companies. We can help give you tailored guidance about what kind of permanent life insurance policy to use for an IFA or whether that may be the right strategy for your needs.
Frequently asked questions
What is an immediate financing arrangement?
An immediate financing arrangement is a unique insurance strategy where you use a whole life insurance policy as collateral to open a line of credit with a financial institution, such as a bank or lender. You can instantly access up to 100% of the premiums you paid for the insurance policy, or up to 100% of the cash value
What are the risks of an immediate financing arrangement?
An immediate financing arrangement carries risks like rising interest rates, cash value performance falling short of expectations, dividend scale fluctuations, change in lender terms, possible tax liabilities, and a few more.
What’s the maximum amount I can borrow through an IFA?
Immediate financing arrangements let you borrow up to 100%; however, the specific amount will depend on your individual policy details.
What is an immediate financing arrangement in Canada and how does it work?
For business owners and high-net-worth individuals, a life insurance policy can offer additional ways to help accomplish financial objectives, and one of those is an Immediate Financing Arrangement or IFA. It is similar to a policy loan, but offers a lot more flexibility and value, instantly. In this article, we’ll explain what an IFA is, how it works, and how it can help maximize cash flow.
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What is an immediate financing arrangement (IFA)?
An Immediate Financing Arrangement or IFA is an advanced financial strategy that allows you to secure permanent life insurance coverage, while retaining access to cash to invest in your income-producing assets or businesses.
In other words, an IFA is an estate planning tool that allows an individual to plan for future tax bills or other lifelong insurance coverage needs without setting aside hefty upfront premium payments for life insurance. An IFA frees up the cash flow that would otherwise be locked in life insurance premium payments, so the liquidity can be used to grow their investment portfolio or businesses instead.
To set up an IFA, an individual can use whole life insurance or universal life insurance as collateral to access a line of credit through a bank or lender immediately.
An IFA gives you a way to effectively:
- Give your beneficiaries the financial protection that comes with insurance coverage
- Continue building cash value growth that can be accessed whenever required
- Instantly recover back the money you paid for premiums
- Have liquid cash you can use for more gainful purposes
An IFA is designed such that the amount you borrow upon setting up of the life insurance policy can be repaid during your life or from the proceeds of your life insurance policy after you pass away.
Normally, you only have to pay interest on the borrowed amount. Most business owners and investors will have access to investment opportunities that can cover the cost of the interest. Further, you may also be able to offset the interest expense against your income and lower your taxes paid.
How does an immediate financing arrangement work in Canada?
In Canada, an immediate financing arrangement works almost the same way that opening a line of credit with a bank does, except your life insurance policy is used as collateral. You:
- Buy a whole life insurance policy that creates significant cash surrender value (CSV) in the initial years
- Secure a line of credit with a bank, lender, or specialized financial institution, using your life insurance policy as collateral
- Get immediate financing for up to 100% of the cash value of your policy or even up to 100% of your paid premiums
- Make regular monthly interest payments
- Pay annual recurring insurance premiums
- Steps 3 to 5 are repeated annually
- You can either pay back the loan while you’re alive or have the remaining balance taken out from the death benefit of your insurance policy after you pass away. The remaining proceeds of the whole life insurance policy are paid out to your beneficiaries upon your passing away.
Your policy will continue to build cash value growth for the entire time it is active.
What are the benefits of an IFA strategy?
Understanding the benefits of an IFA is crucial to assessing whether this approach aligns with your business, estate planning, or investment goals. So, listed below are some of the benefits of the IFA strategy:
- Immediate liquidity: One of the key benefits is immediate access to cash. Instead of locking money inside a policy, the IFA gives you liquidity almost immediately
- Flexibility: Whether you want to expand a business, invest in real estate, or simply improve cash flow, IFA adapts to your financial needs
- Peace of mind: Even while you borrow against it, your life insurance remains fully intact. You still get lifelong coverage, stable cash value growth, and a tax-free death benefit
- No savings lost: The cash surrender value continues to grow, potentially increasing the death benefit as well
- Time-saving: Full underwriting may not be required, which can make the process faster than other types of loans
- Interest-saving: The interest rates may be lower than those of getting a bank loan
- Lenient: An IFA loan does not need to be repaid during your lifetime. If desired, the outstanding loan balance can simply be deducted from the policy’s tax-free death benefit.
- Tax-saving: Potential tax deductions as per CRA rules, depending on how proceeds are used
- Self-paying: If employed correctly, an IFA can cover the cost of your life insurance coverage and be reinvested into projects that generate enough returns to cover interest, too
What are the disadvantages of an IFA?
While an IFA can be quite convenient, it also comes with some disadvantages, from fluctuations in interest rates to a complex structure, and a few more that have been listed in the section below:
- Only permanent life insurance qualifies: To get IFA, a permanent life insurance policy, including whole and universal policies, will be applicable; term policies do not qualify for this
- Capital-intensive: IFA requires sufficient disposable income or savings to pay premiums upfront
- Ongoing interest: An IFA is a line of credit, so interest continues for the period the loan is outstanding
- Risky: Interest can potentially outpace the rate of return on your investments, leaving you out of pocket
- Reduced death benefit: The amount borrowed might reduce the death benefit left for your surviving spouse, family members, or other beneficiaries
- Strict requirements: Some providers may ask for additional collateral, have age or income minimums, and may only accept policies from specific insurance companies
- Complex: An IFA is an advanced insurance strategy that can be difficult to grasp and effectively use
Our licensed life insurance advisors at PolicyAdvisor can help you decide if an IFA is right for you and guide you through the process of setting it up.
Immediate financing arrangement vs policy loan
Here is a table highlighting the difference between the IFA and policy loan:
IFA vs policy loan
| Features | IFA | Policy loan |
| Lender | Third-party lenders like Equitable Bank, Manulife, DUCA, etc | The insurance company directly |
| Collateral | A permanent life insurance policy is assigned to the lender | Policy’s cash surrender value is assigned |
| Loan amount | Up to 100% of the CSV or the premium paid | Typically, 90% of the CSV |
| Repayments | Interest-only payments | Flexible, any outstanding amount is deducted from the death benefit |
| Additional fees | Set-up fees are involved | No set-up fee is involved |
What can insurance immediate financing arrangements be used for?
The good part of IFA is that you can use the loan proceeds for pretty much anything you need. Most people use it for:
- Estate planning or estate equalization
- Offsetting insurance premium costs
- Reinvestment opportunities (real estate purchases, etc.)
- Business expansion, new ventures, etc.
- Business succession planning
In general, an IFA strategy tends to be used for long-term estate planning in conjunction with business or investor liquidity needs. One of the main reasons for this is that it is most effective when you have some way to generate the funds that will offset interest.
Otherwise, there are more cost-effective ways to access funding if your needs aren’t as complex, such as if you just need funding to renovate the house. In that case, an insurance policy loan or even just a simple personal loan from the bank might suit you just fine.
You should get professional advice from a licensed advisor to find out whether an IFA or another option would best suit your purposes.
What are the costs associated with immediate financing for life insurance?
The main costs involved in an IFA are:
- Interest rate: The interest rate is decided by the lender on the amount borrowed. This can vary depending on the lender and the market conditions
- Administration fees: These may be charged when you first get your IFA set up, but they are usually not that expensive
- Potential tax: Loan interest may be deductible for tax purposes if used for business or investment
- Policy costs: Ongoing insurance premiums and policy charges to maintain coverage and cash value
How do you get an IFA in Canada?
You can only get an IFA set up with a financial institution like a bank or lender. But you should start by speaking with an insurance advisor at PolicyAdvisor to look into whole life policies and find out if an IFA is a good insurance strategy for you.
After you get your policy, you can then sit down with your lender to agree on credit terms, collateral requirements, and more.
Which Canadian Lenders offer IFA programs?
Some of Canada’s leading life insurance companies have special programs for IFAs through their banking arms. This includes:
An experienced advisor can help you assess the different products offered and see which one can best help you reach your financial goals.
Is an immediate financing arrangement right for you?
An immediate financing arrangement can be a convenient financial tool and a great strategy to help you make the most out of your whole life policy. But, it’s not suitable for everyone.
An IFA may be a good option if you:
- Need a life insurance policy with a large death benefit
- Intend for their family to use the death benefit to offset tax liabilities
- Have significant disposable income or high retained earnings (in the corporation) to be able to pay premiums all at once upfront
- Have an income-generating business venture or project that can cover the interest
- Are a savvy business owner or investor who needs quick liquidity to deploy the proceeds of an IFA
Immediate financing arrangements vs infinite banking
If you have heard about the infinite banking concept (IBC), an IFA may sound similar to you. But they’re far from the same.
An IFA is a financial strategy that helps mostly high-net-worth clients quickly access funds while still building growth and covering their insurance premium payments. An IBC, on the other hand, allows individuals to leverage the cash value of their policies to finance purchases, investments, and other financial needs while maintaining control over the cash flow.
Key differences between an IFA and IBC
| Parameters | IFA | IBC |
| Purpose | The primary purpose of an IFA is to provide immediate access to funds by borrowing against a life insurance policy’s cash value. It’s typically used to finance large expenses or investments | The Infinite Banking Concept focuses on using whole life insurance policies as a tool for creating a personal banking system. It involves leveraging the cash value of the policy to finance purchases, investments, and other financial needs while maintaining control over the cash flow |
| Access funds | Funds can be accessed immediately through borrowing from a third-party lender against the cash value of the life insurance policy | Funds are accessed by taking policy loans from the insurance company against the cash value of the whole life insurance policy. The policyholder has control over when and how to access these funds |
| Loan repayment | The borrower is responsible for repaying the loan according to the terms of the loan agreement, typically with interest. The collateral loan proceeds can be used tax-free by the policy owner | The loan can be repaid flexibly, and there is no immediate tax trigger |
In summary, while both concepts involve leveraging the cash value of life insurance, an IFA focuses on immediate access to funds through borrowing against the policy, while the Infinite Banking Concept emphasizes creating a personal banking system using whole life insurance policies.
Either way, you should speak with a licensed professional before you make a decision. An experienced team of advisors like those at PolicyAdvisor can look at your current situation and help you figure out whether an IFA is the best choice.
Frequently asked questions
What is an immediate financing arrangement?
Immediate financing arrangement or IFA is a financial strategy that helps permanent life insurance policyholders to get an instant loan from financial institutions. IFAs are commonly used by high-income individuals and business owners looking for tax efficiency, flexibility, and long-term wealth planning.
Can I get an IFA before I get life insurance?
No, in general, banks or lenders will want to make sure your policy is secured or at least approved before they will agree to an IFA. Most will require that security first, and only then will they give you financing.
Can I only use life insurance for an IFA?
You can only use a permanent life insurance policy with a cash accumulation component for an immediate financing arrangement in Canada. This is because the financial institution will use the policy and its cash value as collateral security to recoup the advanced money if the credit arrangement falls through.
Other types of insurance policy e.g. term life policies, don’t have this cash surrender value aspect, so they’re not the ideal solution for collateral.
What’s the minimum amount I can borrow through an IFA?
The minimum amount for a line of credit varies by lender, but it’s typically set at $500,000 of minimum borrowing. Some lenders might offer a lower line of credit, like $250,000, if you’re including coverage for your spouse or business partner. Lines of credit for an IFA are usually established for a 10-year term.
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.
Manulife Par with Vitality Plus
Performax Gold
20-pay
pay-to-100
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.
See how much whole life insurance coverage you can get
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Compare dividend rates from top Canadian insurers
| 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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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.
| 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 |
|
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.
| 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 | 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
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
| Factor | Predictability | Stability | Impact on performance |
| Mortality | High | High | Low |
| Cancellations | Medium | Medium | Medium |
| Expenses & Taxes | High | High | Low |
| Investment Returns | Medium | Medium | High |
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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.
| 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.
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.
Equimax Wealth Accumulator
20-pay
pay-to-100
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
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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.
Dividend Scale - Participating Whole Life Insurance
Compare dividend rates from top Canadian insurers
| 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:
| 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
| 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.
| 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 |
* 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 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 | 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.
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.
| 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:
| 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
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.
| 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 | ✘ | ✓ |
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
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.
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.
RBC Whole Life Insurance Review – 2026
RBC Insurance, backed by one of Canada’s largest banks, offers participating whole life policies that build cash value and provide guaranteed lifelong protection. RBC provides two whole life plans: Growth Insurance and Growth Insurance Plus, each with distinct features. While the former has coverage starting from $25,000, the coverage for Growth Insurance Plus begins at $250,000. In this review, we will explore their whole life insurance offerings, focusing on their key features, benefits, types, and pros and cons to help you decide if they are the right fit for your needs.
PolicyAdvisor’s RBC whole life insurance rating (4/5)
RBC whole life insurance earns a 4 out of 5 rating from PolicyAdvisor. The ratings are based on different factors, including cash-value growth, fees, riders availability, policy performance, and bonus stability.
With an asset size of $28.6B and a LICAT ratio of 135%, RBC demonstrates strong financial strength. It’s estimated par fund size is $9.60 million and has maintained a stable dividend rate over the past few years.
RBC dividend scale interest rate (DSIR) for the past few years has been as follows:
| Year | DSIR |
| 2021 | 6.00% |
| 2022 | 6.00% |
| 2023 | 6.00% |
| 2024 | 6.25% |
| 2025 | 6.30% |
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Pros and cons of RBC’s whole life insurance
RBC’s whole life insurance plans offer several advantages, including lifetime coverage, cash value accumulation, multiple payment and dividend options, flexible use of cash value, and automatic premium loans. However, there are also some downsides, like higher premium costs, delayed access to cash value, and variable dividends.
Here’s a complete breakdown of the pros and cons of RBC whole life insurance:
Pros and cons of RBC’s whole life insurance
| Pros | Cons |
| Offers 5 dividend options, the highest among Canadian insurers | The deposit option is available only if the premium payment period is 20 Pay or Life Pay |
| Allows deposit option payments to purchase additional insurance | Cash value is only accessible after 5 years for Growth Insurance policyholders |
| Provide a $25,000,000 coverage limit | |
| Includes a juvenile guaranteed insurability benefit at no additional cost for insureds under 18 |
What are the different types of RBC whole life insurance?
RBC offers two participating whole life plans with lifetime coverage and cash value accumulation: RBC Growth Insurance and RBC Growth Insurance Plus. The plans also pay annual dividends, based on the performance of the “par” account, which is funded by premiums from participating policyholders.
Here’s a closer look at the two plans:
- RBC Growth Insurance: Provides lifelong coverage starting at $25,000, with cash value accessible after five years. Annual dividends can be issued as:
-
- Cash payments: You can receive your dividends as cash, though they may be taxable
- Premium reductions: Dividends are applied to your premiums for the following year. Any excess dividends are paid to you directly
- Interest-earning deposits: Dividends are deposited into an interest-bearing account, which you can access anytime. Any interest earned is taxable
- Paid-up additions: This option uses dividends to buy additional insurance coverage. The added coverage can earn dividends and build its own cash value over time
- Enhanced insurance: Your dividends can also be used to buy a mix of paid-up additions and one-year term insurance. The insurance purchased using paid-up additions can earn dividends and build cash value in the future
For policyholders under 18, the plan includes a juvenile guaranteed insurability benefit at no additional cost.
- RBC Growth Insurance Plus: Offers lifelong coverage starting at $250,000, with cash value accessible after the first year. It includes the same dividend options as the Growth Insurance plan.
Key features of RBC’s Grow Insurance and Grow Insurance Plus
| Category | RBC Growth Insurance | RBC Growth Insurance Plus |
| Cash value accumulation | Accessible after 5 years | Accessible after the first year |
| Premium type | Fixed with flexible payment options:
Life Pay, 10 Pay, 20 Pay |
Fixed with flexible payment options:
Life Pay, 10 Pay, 20 Pay |
| Maximum issue age | Up to 80 years | Up to 80 years |
| Coverage amount range | $25,000 to $25,000,000 | $250,000 to $25,000,000 |
| Dividend options |
|
|
| Policy loan availability | Yes, you can borrow against your policy’s cash value if it’s not in the grace period | Yes, you can borrow against your policy’s cash value if it’s not in the grace period |
| Payment flexibility | Monthly or annually | Monthly or annually |
| Living benefits |
|
|
| Additional riders | Guaranteed Insurability Benefit Rider, Renewable and Convertible Term Rider, Total Disability Waiver of Premium Benefit Rider, Accidental Death Benefit Rider, Children’s Term Insurance Rider, Payor Death and Disability Waiver of Premium Benefit Rider | Guaranteed Insurability Benefit Rider, Renewable and Convertible Term Rider, Total Disability Waiver of Premium Benefit Rider, Accidental Death Benefit Rider, Children’s Term Insurance Rider, Payor Death and Disability Waiver of Premium Benefit Rider |
Source: RBC Insurance
Source: RBC Growth Insurance and RBC Growth Insurance Plus Guide
RBC whole life limited-pay options
Both RBC growth insurance and RBC growth insurance plus are available with limited-pay options. These plans let you choose from the available premium paying options, including 10-pay, 20-pay, and lifetime pay. Choose a suitable premium pay option and enjoy coverage for life with RBC whole life plans.
How much dividend does RBC pay?
RBC’s dividend payments depend on its dividend scale, which changes annually. While the dividends in a par account are not guaranteed, historically, RBC has maintained a dividend scale interest rate of 6.00%. This was recently increased to 6.30%, effective April 2025. Policyholders can expect their dividends to be paid according to this new rate until March 31, 2026.
Dividend Scale - Participating Whole Life Insurance
Compare dividend rates from top Canadian insurers
| 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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Factors affecting the dividends of RBC whole life policy
Each year, dividends are determined based on the performance of the participating account backing RBC Growth Insurance and Growth Insurance Plus. The factors that affect the performance include investments, policy cancellations, and administrative costs, which will be detailed in the section below:
- Investment returns: Premiums from all participating policyholders are combined into a shared fund called the participating account. Managed by RBC portfolio managers, this fund is then diversified across assets like bonds, equities, and real estate to achieve long-term, stable growth. The returns earned directly influence the level of dividends distributed
- Policy cancellations: Dividends also reflect experience with policy cancellations and death claims. These assumptions support stability and sustainability for policyholders
- Administrative costs: RBC’s ability to control administrative and operational costs also impacts the dividends. Efficient management means fewer expenses and more funds that can potentially be allocated to dividends
Riders available with RBC whole life insurance policy
Listed below are some of the riders that you can include in your RBC whole life insurance policy to enhance its coverage:
- Guaranteed insurability benefit: This lets you get additional life insurance coverage without updating any health or lifestyle information
- Payor death and disability: It is only applicable to the payor of the life insurance policy and is helpful in waiving off the premium if the payor dies or suffers disability
- Children’s term rider: It provides term insurance coverage to all the children of the life insured
- Waiver of premium rider: This rider will waive the premium in the event of permanent disability of the life insured
- Accidental death benefit rider: This provides additional death benefit if the life insured dies due to an accident
How can I access my RBC whole life cash value?
You can access the cash value of your RBC whole life policy in several ways:
- Policy loans: You can borrow up to 90% of your policy’s cash value, provided it’s not in the grace period
- Use policy as collateral: You can request to use your policy as collateral for a loan
- Cash withdrawal: You can withdraw a portion of your guaranteed cash value by reducing your base life insurance coverage. This will decrease the death benefit your beneficiary could receive
- Premium offset: If your policy has sufficient cash value, you can use it to pay premiums. This option is not guaranteed and is available only once your policy reaches the earliest offset date, with no outstanding loans
How do you apply for RBC’s whole life insurance?
Choosing the right whole life insurance involves several important decisions, such as selecting the right plan, coverage level, and premium structure, that can quickly become overwhelming. Here is how you can buy RBC whole life insurance policy with PolicyAdvisor:
- Speak with a licensed PolicyAdvisor expert
- Review RBC whole life insurance plans along with the other options available
- Receive a personalized illustration and finalize your application online
PolicyAdvisor offers free quotes at the best market rates and lifetime after-sales support to address any questions or adjustments you may need in the future. Schedule your free consultation with our licensed advisors today!
Frequently asked questions
Is RBC’s whole life insurance worth it?
Whether RBC’s whole life insurance is worth it depends on your individual financial goals and budget. If you are looking for a tax-deferred growth opportunity with guarantees like lifelong protection and tax-free death benefit, then RBC’s whole life insurance is worth considering. However, due to higher premium costs, it is important to assess their affordability and payment options before making a decision.
Does RBC offer participating policies with dividends?
Yes. Both Growth Insurance and Growth Insurance Plus are participating policies that pay annual dividends based on the participating account’s surplus.
What is the difference between RBC Growth Insurance and Growth Insurance Plus?
RBC Growth Insurance and RBC Growth Insurance Plus differ mainly in terms of their starting coverage amount and cash value accessibility. Growth Insurance offers affordable lifetime coverage starting at $25,000, with cash value access after 5 years. Growth Insurance Plus requires a higher minimum coverage of $250,000 but offers cash value access after just one year.
Can I convert my RBC term life insurance to whole life insurance?
Yes, RBC offers conversion options in its YourTerm policies that allow you to upgrade your term life insurance to any of RBC’s permanent life offerings, including whole life insurance, until the age of 71.
Does RBC have whole life insurance?
Yes. RBC offers participating whole life insurance. These policies provide lifelong coverage, cash value growth, and five dividend options. You can choose between RBC Growth Insurance and RBC Growth Insurance Plus; both are participating whole life insurance policies.
What happens if I miss a premium payment for my RBC whole life policy?
If your policy has accumulated enough cash value, RBC may use it to cover premiums through an automatic premium loan. However, if the loan amount exceeds the cash value, you will need to make a payment, or the policy will lapse.
Does RBC offer deposit option payments?
Yes, RBC offers a deposit option that lets you make payments in addition to the required premiums. These extra payments help increase the non-guaranteed cash value of your policy in the long term. The deposit option is available only if your chosen dividend option is paid-up additions and the premium payment period is 20 Pay or Life Pay.
iA Whole Life Insurance Review – 2026
Industrial Alliance (iA) Whole Life Insurance offers lifelong protection combined with the opportunity to build guaranteed cash value over time. It is designed for those seeking stability and long-term financial growth in Canada. Policyholders can also benefit from potential dividends, flexible payment options, and access to the accumulated cash value for future needs.
Whether you are looking to safeguard your family, build long-term savings, or leave a meaningful legacy, iA Whole Life Insurance promises to be a steady partner in your financial journey. In this review, we will delve into the key features, benefits, and how it can stack up against your insurance needs.
About iA par whole life at a glance:
| Estimated par fund size | $69.36 million |
| Dividend scale interest rate (2025) | 6.35% |
| Policyholder structure | Shareholder-owned |
| Business history | 130+ years |
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PolicyAdvisor’s iA whole life insurance rating: (4/5)
Our expert advisors at PolicyAdvisor have given iA a 4 out of 5 rating. The rating is based on early/long-term cash value growth, premium options, bonus stability, fees, riders, and issue ages.
Furthermore, iA has a good fund size of $69.36 million and backs its whole life insurance with a broadly diversified asset allocation, with about two‑thirds of assets allocated to fixed income and just over one‑third to non‑fixed income investments.
Pros and cons of iA’s whole life insurance
iA whole life insurance has several pros, such as multiple dividend options, a variety of riders for both their PAR and non-PAR plans, faster plan approval via accelerated underwriting, and the pioneering iA Large Case Solutions program. However, there are some disadvantages, such as the non-availability of cash surrender value in the T100 plan and limited disability benefit access.
| Pros | Cons |
| iA offers flexibility with four dividend options, allowing customization of coverage | The disability benefit is available only in the PAR plans. |
| A variety of riders are available for both traditional and PAR plans to enhance coverage | The T100 plan does not offer cash surrender value |
| Faster insurance approval with an accelerated underwriting process which can reduce wait times | |
| iA provides expert support for advisors and clients through its Large Case Solutions program for complex cases |
What are the key features of iA whole life insurance plans?
iA whole life insurance is available in two options: non-participating whole life insurance and participating whole life insurance.
While iA non-participating insurance has a minimum coverage of $10,000, iA PAR options have a starting coverage value of $25,000. Both plans have several additional benefits and riders to provide complete financial protection to insured individuals.
What are the different iA whole life plans I can choose from?
iA Financial offers a range of whole life insurance plans tailored to meet different financial goals, with options for both participating and non-participating whole life insurance.
For participating whole life, there are primarily two plans to choose from: iA PAR Estate and iA PAR Wealth. While the Estate plan focuses on higher death benefits with lesser upfront cash value, the Wealth plan generates higher cash value for the short-term goals of the insured individual.
1. Non-participating whole life insurance
iA Financial Group’s non-participating whole life insurance is designed for those who seek simple, reliable, and lifelong protection.
This policy is an excellent solution for anyone looking to safeguard their family’s financial future or preserve their estate, offering guaranteed coverage and a range of benefits that remain in effect for life.
Key features of iA non-participating whole life insurance
- Guaranteed face amount and premiums: The policy provides a guaranteed face amount, ensuring that your loved ones or estate receives a predetermined benefit upon your passing
- Paid-up insurance: With the option of paid-up insurance, you can enjoy full coverage without having to pay premiums for life. This provides flexibility and financial relief in later years, making it a highly appealing feature for those planning their retirement
- Flexible and personalized coverage: You can enhance your coverage with riders and additional benefits, including critical illness coverage, accidental death benefits, and child protection rider
Who can benefit from iA non-participating whole life insurance?
Non-participating policies can benefit:
- Families looking to ensure their loved ones are financially secure
- Individuals aiming to leave a clear and structured legacy for their estate
- Those who prefer a straightforward insurance solution without market-based dividend fluctuations
What are the different coverage options for iA whole life insurance?
iA whole life insurance policy is available in four coverage options to suit different coverage needs. Individual insurance covers only one person, with the face amount paid out upon their death. This type of insurance is also the only option compatible with the Child Life & Health Duo plan.
For shared coverage, there is joint first-to-die insurance, which insures up to two people and pays the face amount upon the death of the first insured, terminating the policy thereafter.
Alternatively, joint last-to-die insurance covers two individuals but pays out only after both have passed, with premiums continuing after the first death. A variation of this, joint last-to-die, paid-up on first death, provides similar coverage but halts premium payments once the first insured dies, ensuring the coverage amount is paid upon the death of the second insured.
What are the riders and available benefits for iA non-participating whole life insurance?
iA Financial Group offers a variety of riders and additional benefits, such as AD&D, Guaranteed Insurability, waiver of premiums, critical illness coverage, and more, to enhance its non-participating whole life insurance policies.
These options allow policyholders to create a comprehensive, tailored plan that aligns with their specific needs, providing extra financial security for unforeseen events.
Additional benefits (riders) of iA non-participating whole life policy
- Accidental Death and Dismemberment (AD&D): Offers benefits for accidental death or serious injuries, such as loss of a limb or eyesight
- Accidental fracture (AF): Covers specific payments for fractures caused by accidents.
- Guaranteed Insurability (GI): Allows the insured to purchase additional coverage at future dates without needing further medical evidence
- Waiver of premiums in the event of the applicant’s disability (WPDis): Premium payments are waived if the applicant becomes disabled
- Waiver of premiums in the event of the applicant’s death (WPD): Premium payments cease if the applicant passes away
- Child module and child module plus: Provide comprehensive protection for children, including coverage for critical illness, death, and other risks
- Critical Illness: Pays a lump sum benefit if the insured is diagnosed with a covered critical illness
- Disability credit: Offers financial assistance if the insured becomes disabled
2. Participating whole life insurance
Participating plans from iA Financial Group let policyholders benefit from the company’s performance through annual dividends. These dividends can be reinvested to grow your policy’s cash value or used in other ways, depending on your preferences. iA offers two standout participating whole life plans:
iA PAR Estate
Designed for individuals who want to leave a lasting legacy, iA PAR Estate is focused on maximizing the death benefit for estate planning purposes. This plan helps you efficiently transfer wealth to your loved ones or chosen beneficiaries while benefiting from the policy’s growth over time.
iA PAR Wealth
This plan is tailored for those aiming to build and access cash value during their lifetime. With a focus on wealth accumulation, iA PAR Wealth offers flexibility for personal or business financial needs, making it a popular choice for individuals with long-term growth objectives.
Features of iA PAR Estate and iA PAR Wealth
| Feature | iA PAR Estate | iA PAR Wealth |
| Primary objective | Designed to maximize the death benefit for estate planning | Focused on building significant cash value that can be accessed during the policyholder’s lifetime |
| Target audience | Clients prioritizing legacy planning, such as transferring wealth to heirs or charitable organizations | Clients aiming for short-term financial accelerated growth and flexibility in accessing policy funds |
| Death benefit growth | Offers consistent growth in the death benefit over time | Balances death benefit growth with a primary focus on cash value accumulation |
| Cash value access | Cash value is initially lower and accessible after completion of 5 years of the policy | Cash value is initially higher and accessible after completion of 1 year of the policy |
| Policy liquidity | Lower liquidity initially | High liquidity initially |
| Premium payments | Annual or monthly payments with a pre-authorized cheque (PAC) | Annual or monthly payments with a pre-authorized cheque (PAC) |
How can you access dividends in an iA whole life insurance?
iA Financial Group offers four different dividend strategies, including paid-up additions, annual premium reduction, cash payouts and deposits with interest for their participating whole-life insurance plans:
- Paid-up additions: Dividends are used to purchase additional paid-up insurance, increasing both the policy’s face amount and its cash surrender value
- Annual premium reduction: Dividends are applied to reduce the amount of the next annual premium payable, lowering the out-of-pocket cost for the policyholder
- Payable in cash: Dividends are paid directly to the policy owner, providing immediate liquidity. This option may have tax implications
- Deposit with interest: Dividends are deposited into a savings account managed by iA Financial Group, where they earn interest. The interest earned is taxable at the end of the year
Additional deposit option
iA Par policies also have an additional deposit option, which means that policy owners can buy additional paid-up insurance. This gets added to the existing paid-up insurance. Please note that this is not applicable to the iA PAR 10-year payment. The additional deposit contribution needs to be specified in the insurance application form.
How are dividends for iA whole life participating policies distributed?
The participating account in iA whole life is managed by the iAGAM team, who are experienced in handling bonds, equities, asset allocation, alternative assets, and risk management. The participating account in an iA whole life policy benefits from different assets. The dividends are distributed amongst the following assets:
- Short-term investments
- Government bonds
- Corporate bonds
- Preferred shares
- Commercial mortgages
- Private debts
- Private equity and infrastructure
- Real estate
- Common shares
How does iA calculate dividends?
Dividends are not guaranteed and may differ from one year to another based on the performance of iA’s participating (PAR) account. Each year, iA’s Board of Directors decides the dividend amount based on the company’s dividend policy, which ensures fair distribution among policyholders.
The dividend amount depends on the dividend scale, which reflects the financial performance of the participating account. This performance is influenced by factors such as investment returns, mortality rates, policy lapses, and expenses related to iA’s participating contracts.
The dividend scale can go up or down based on these factors. Once dividends are declared, it is paid to the policyholder on the policy’s commencement date.
Taxation of dividends
The taxation of dividends on an iA whole life insurance policy depends on the option you have selected. It will vary if you have opted for paid-up additions, cash, or any other available option. Here’s a breakdown of how taxation applies to each option:
- Paid-up additions: No tax applies if the full dividend buys paid‑up additions. If any portion is paid to the policyowner, cash payment tax rules apply
- Payable in cash: Any amount exceeding the adjusted cost base (ACB) is taxed
- Annual premium reduction: Dividends are used to reduce the premium; the ACB remains unaffected. No tax applies in this case
- Deposit with interest: Dividends that are held on deposit and earn interest are taxable; the interest credited is taxed annually
Dividend Scale - Participating Whole Life Insurance
Compare dividend rates from top Canadian insurers
| 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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iA whole life with limited pay option
The iA whole life plan comes with limited pay options, which means you can pay your premium for a set number of years. To ensure flexibility, the company offers 10-pay, 20-pay, and pay-to-100 options. Limited-pay policies are popular because they provide long-term financial certainty and are ideal for people who want guaranteed lifetime coverage without lifelong premium obligations.
What are the additional benefits and riders offered by iA participating whole life insurance?
iA Financial Group offers a range of additional benefits and riders, including additional term coverage, waiver of premiums, critical illness coverage and accidental benefits for their participating whole life insurance policies.
These options allow policyholders to tailor their coverage to meet specific needs and enhance the value of their policy.
1. Term coverage
Policyholders can supplement their permanent life insurance with renewable and convertible term life insurance options, providing extra protection for a set period. Options include:
- T10 (Renewable and Convertible): Provides coverage for 10 years, with the option to renew or convert to permanent insurance without additional medical exams
- T20 (Renewable and Convertible): Similar to T10 but offers coverage for 20 years
- Pick-A-Term Options:
- T25: Provides coverage for 25 years
- T30: Offers coverage for 30 years
2. Child benefits
These riders ensure additional protection for children under the policy:
- Child Module: Child Module covers children to age 25 or parents to age 65, whichever comes first
- Child Module PLUS: Includes enhanced benefits for children, offering more comprehensive protection with the inclusion of an accidental fracture benefit
3. Accident benefits
Accident riders provide additional financial support in case of accidental injuries or death:
- Accidental Death (AD): Pays an extra benefit to the beneficiaries if the insured’s death is due to an accident
- Accidental Death and Dismemberment (AD&D): Offers financial compensation for accidental death or dismemberment, helping cover unexpected expenses
- Accidental Fracture (AF): Provides a lump-sum benefit in the event of accidental fractures, helping offset medical costs
4. Waiver of premium riders
These riders ensure the policy remains active without requiring premium payments under specific circumstances:
- Waiver of Premiums in the Event of the Applicant’s Disability (WPDis): If the person who applied for the policy becomes disabled, premiums are waived to keep the coverage intact
- Waiver of Premiums in the Event of the Insured’s Disability (WPIDis): If the insured individual becomes disabled, the premiums are waived to ease the financial burden
- Waiver of Premiums in the Event of Death (WPD): If the policyholder passes away, future premiums are waived to ensure the policy benefits remain available to beneficiaries
What is the Child Life and Health Duo plan offered by iA?
The Child Life and Health Duo plan from iA Financial Group is a comprehensive insurance solution designed to provide both life and critical illness coverage for children. This plan ensures financial security for families by addressing potential medical and financial challenges while building a foundation for the child’s future.
Some of the main features of the Child Life and Health Duo plan include:
- Dual coverage: Combines life insurance and critical illness insurance into one policy
- Critical illness protection: Provides coverage for a range of critical illnesses, offering a lump-sum benefit to help with medical expenses, recovery costs, or other financial needs
- Life insurance benefit: Ensures a payout in the event of the child’s passing, providing financial support for the family during a difficult time
- Convertibility: Offers the flexibility to convert the child’s coverage into an adult policy later in life without requiring additional medical exams
- Affordable premiums: Designed to offer comprehensive protection at a cost-effective rate
- Cash value growth: Includes a savings component that builds cash value over time, which can be accessed in the future for various financial needs
Can I get a loan against my iA whole life insurance policy?
Yes, you can take out a loan against your iA whole life insurance policy through two types of policy loan advances: the cash loan advance and the automatic loan advance.
Both types of loan advances allow the policyholder to access the cash value of the policy while still maintaining eligibility for dividend payments, though there are some important details and limitations to consider.
- Cash loan advance
- The policy owner can request a cash loan advance at any time in writing
- The loan amount cannot exceed 90% of the surrender value of the basic coverage (including any reduced paid-up insurance, if applicable) plus 90% of the surrender value of any paid-up insurance, minus any amounts owed to the company
- Automatic loan advance
- This type of loan advance is automatically initiated by the company if premiums are due and have not been paid by the end of the grace period
- The automatic loan advance cannot exceed the total surrender value of the policy, which includes the surrender value of the basic coverage, any reduced paid-up insurance, the surrender value of the paid-up insurance, and the balance of the dividend deposit account (if applicable)
- The total outstanding loan balance, including any other amounts owed to the company, cannot exceed the policy’s total surrender value
Who should consider buying iA whole life insurance?
With a 4 rating from PolicyAdvisor, iA whole life insurance plan is a good choice for the following group of people:
- Those who want life insurance coverage and a financial safety net
- Those who want estate planning or transfers
- Those who prefer access to cash value
- Those who might need to use policy as collateral for business needs
How to get iA whole life insurance quote in Canada with PolicyAdvisor?
When searching for the best whole life insurance quotes in Canada, you have a few routes to consider. While you could spend hours browsing various websites and comparing policies on your own, this process can quickly become overwhelming and time-consuming. That’s where PolicyAdvisor comes in and helps you choose iA whole life insurance quote.
- Speak with a licensed PolicyAdvisor expert
- Review iA whole life insurance plans along with the other options available
- Receive a personalized illustration and finalize your application online
What makes PolicyAdvisor stand out isn’t just our competitive pricing and wide range of options, but also our lifetime after-sales support. Once you’ve secured your policy, we don’t leave you on your own. Our team of expert advisors is always available to assist with any questions or adjustments you may need, ensuring you receive continuous support throughout your journey. It’s a seamless, stress-free way to get the best coverage, knowing you’re fully supported now and in the future.
Frequently asked questions
Can I adjust my iA whole life insurance policy as my needs change?
While whole life insurance is designed to provide lifelong coverage, iA offers flexibility through optional riders and benefit adjustments.
For example, you can add more coverage, adjust your payment structure, or integrate additional protection like disability benefits. These options ensure that your policy evolves with your lifestyle and financial goals.
Does iA whole life insurance offer tax advantages?
Yes, iA whole life insurance provides significant tax advantages. The cash value grows tax-deferred, meaning you won’t pay taxes on the gains as long as they remain within the policy.
Additionally, the death benefit is typically paid out tax-free to your beneficiaries, making it an excellent tool for estate planning and wealth transfer.
How does iA ensure that my policy remains affordable long-term?
iA whole life insurance comes with fixed premiums, which means your monthly or annual payments won’t increase over time, regardless of changes in your health or the economy.
This stability makes budgeting easier and ensures that your policy remains affordable as you age. Additionally, participating policies with dividends can offset costs, offering even greater value over the life of the policy.
Are there any transaction fees applicable to iA whole life insurance?
Yes, iA whole life insurance policy may incur transaction fees, which are calculated per policy, not per insured. If multiple changes are made within the same policy, only the highest fee is charged, unless additional coverage or benefits are requested, in which case all fees are waived. If the same change is processed on multiple policies, a transaction fee will be applied to each policy. These fees are important to consider when making changes or requests related to your policy.
What are the dividend options available with iA whole life insurance?
With iA whole life insurance policy, policyholders have several flexible options for how their dividends are used. Dividends can be applied to purchase paid-up additions (PUAs), which increase both the policy’s death benefit and cash value over time. They can also be used to reduce or fully pay future premiums, helping lower out-of-pocket costs. Alternatively, policyholders may choose to receive dividends in cash each year or leave them with iA to accumulate with interest.
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: Best mutual insurer
- Manulife: Best for overall performance
- Empire Life: Best for balanced performance
- Sun Life: Best for high-net-worth individuals
- Foresters: Best 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.
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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.
1. Equitable Life: Best for mutual company
Equimax Wealth Accumulator
20-pay
pay-to-100
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.
Equimax Estate Builder: Slower early growth; strong long-term value
Equimax Wealth Accumulator: Faster early growth; accessible earlier
Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit
2. Manulife: Best for overall performance
Manulife Par with Vitality Plus
Performax Gold
20-pay
pay-to-100
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.
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)
Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit
3. Empire Life: Best for balanced performance
Optimax Wealth
10-pay
20-pay
pay-to-100
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.
EstateMax: Steady long-term growth
Optimax Wealth: High early cash values
Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit
4. Sun Life: Best for high-net-worth individuals
Sun Par Accumulator II
Sun Par Accelerator
SunSpectrum Permanent Life II
10-pay
15-pay
20-pay
pay-to-100
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.
Sun Par Protector II: Cash value starts after 5 years
Sun Par Accumulator II: Cash value starts after 1 year
Sun Par Accumulator II: Cash value starts after 1 year
Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit
5. Foresters Financial: Best for smokers
Non-Par Whole Life
20-pay
pay-to-100
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.
Advantage Plus II: Cash value starts after 1 year
Foresters Non-Par Whole Life: Guaranteed cash values; slower growth
Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit
6. BMO: Best for non-participating whole life insurance
Wealth Accelerator
20-pay
pay-to-100
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.
Estate Protector: Strong guaranteed cash values; long-term estate growth
Wealth Accelerator: Faster liquidity; quicker cash value access
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
Wealth Select
My Par Gift
20-pay
pay-to-100
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.
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
Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit
8. Canada Protection Plan: Best for non-medical whole life insurance
Simplified Elite
Guaranteed Acceptance Life
Deferred Life
20-pay
pay-to-100
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.
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
Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit
9. Desjardins: Best for early and flexible pay-off
Estate Enhancer
Accelerated Growth
10-pay
20-pay
pay-to-100
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.
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
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
iA PAR Estate
iA PAR Wealth
Life and Serenity 65
20-pay
pay-to-100
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.
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
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
RBC Growth Insurance Plus
20-pay
pay-to-100
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.
RBC Growth Insurance: Cash values accessible after policy year 5
RBC Growth Insurance Plus: Faster early cash value accumulation vs. base plan
Paid-up additions (PUA), cash dividends, premium reduction, deposit at interest, enhanced coverage
12. Assumption Life: Best for quick-issue policies
Golden Protection Elite
FlexOptions
20-pay
pay-to-100
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.
Golden Protection/Elite: Guaranteed cash values with steady growth
FlexOptions: Flexible accumulation tailored to client needs
Paid-up additions (PUA), enhanced coverage, cash, premium reduction, and deposit
13. Beneva: Best for complementary additional features
Beneva Non-Participating Whole Life
Simplified and Guaranteed Issue Whole Life
20-pay
pay-to-100
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.
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
Beneva Participating Whole Life: Paid-up additions (PUA), premium reduction, cash dividends, deposit at interest
14. UV Insurance: Best for long-term growth
Adaptable Whole Life
Non‑participating whole life (simplified issue)
20-pay
pay-to-100
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.
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
N/A (primarily non-participating focus)
15. Wawanesa: Best for value and guaranteed benefits
pay-to-100
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.
Guaranteed cash values; dividend-eligible
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.
| 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.
| 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
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