About Empire Life

Empire Life is one of Canada’s most established insurers, recognized for consistent performance, client-focused service, and strong financial strength, including an A rating from A.M. Best. Founded in 1923, Empire Life’s whole life insurance offers lifetime coverage through participating and non-participating plans. 

A key feature of Empire Life’s is its participating whole life insurance plans, EstateMax and Optimax Wealth, which are supported by a disciplined $1.32 billion par fund. With nearly a century of experience, Empire Life offers coverage that balances predictable growth, reliable cash value accumulation, and flexible options for long-term financial goals. 

Empire Life’s financial strength:

Disclaimer: Figures and ratings are based on the latest available information and may change over time

What is Empire Life whole life insurance?

Empire Life whole life insurance is a type of permanent life insurance designed to provide lifetime protection. Its portfolio includes non-participating policies, which provide guaranteed benefits and cash values, and participating policies, which provide guaranteed benefits while also giving policyholders the potential to receive dividends based on the performance of the insurer’s participating account.

Empire Life offers two participating plans, EstateMax and Optimax Wealth, and two non-participating plans, Solution 100 and Term to 100. Both EstateMax and Optimax Wealth offer coverage of up to $20 million, with limited-pay options including 10-pay, 20-pay, and life-pay. Optimax Wealth also offers an 8-pay option, giving policyholders an additional way to pay premiums over a shorter period.

Among the non-participating plans, Term to 100 is suited for those seeking permanent insurance protection without cash value benefits, while Solution 100 is designed for those who want permanent protection with access to cash values. Both plans can also be customized with riders, including waiver of premium, guaranteed insurability, accidental death and dismemberment, and others.

Key features of Empire Life whole life insurance:

Who is eligible for Empire Life whole life insurance?

Empire Life whole life insurance is designed for:

• Canadian residents who meet Empire Life’s underwriting requirements
• Individuals within the applicable issue ages: 18-75 for Term to 100; 0-75 for Solution 100; and 0-75 for EstateMax and Optimax Wealth under single-life coverage. Joint coverage for EstateMax and Optimax Wealth is available from ages 18-75
• Applicants seeking at least $ 10,000 in coverage (can vary depending on the age)

Key benefits of Empire Life whole life insurance

Empire Life whole life insurance offers lifelong protection with options for growth, stability, and estate planning. It combines guaranteed lifetime coverage with dividend-earning potential or guaranteed cash values, depending on the plan type. Here are its key benefits:

• Lifetime coverage: Your policy remains in force for life
• Death benefit: Provides a tax-free death benefit to beneficiaries when the insured person dies, provided the policy remains in force
• Fixed level premiums: Premium payments stay the same throughout your chosen premium-pay period
• Dividend potential (for participating plans): Eligible policies may receive annual dividends, which can be used to buy paid-up additions, reduce premiums, withdraw as cash, or earn interest
• Cash value: Cash values are available for all types, except Term 100 may depending on the circumstances
• Flexible payment choices and riders: Choose shorter pay options (10-pay or 20-pay) or life-pay for flexibility. Add riders such as accidental death, child term insurance, or disability waiver for customized coverage
• Living benefit: This is a non-contractual benefit that is approved on a case-by-case basis. It provides up to 50% of the death benefit, to a maximum of $50,000, if the insured is diagnosed with a terminal illness and has 12 months or less to live

Types of Empire Life whole life insurance

Empire Life offers four whole life insurance plans, including two participating plans and two non-participating plans. These plans are designed to meet different financial goals and payment preferences.

Participating whole life plans by Empire Life:

• EstateMax
• Optimax Wealth

Non-participating whole life insurance by Empire Life:

• Solution 100
• Term to 100

About Empire Life’s participating whole life insurance plans

Empire Life’s participating whole life plans provide lifetime protection, guaranteed premiums, and the potential for steady long-term cash value growth. Like all participating policies, they may earn annual dividends based on the performance of Empire Life’s participating account, which invests in a mix of bonds, equities, and real estate. While dividends aren’t guaranteed, they offer an opportunity to enhance coverage and overall policy value.

Currently, Empire Life offers two participating whole life plans:

EstateMax: Best for long-term estate and wealth transfer

EstateMax is built for Canadians who want strong long-term cash value growth. It’s ideal for those focused on estate planning or leaving a larger legacy. Coverage starts at $10,000 for ages 0-17 and 66-75, and $25,000 for ages 18-65. It offers 10-pay, 20-pay, and life-pay options, with dividend choices including paid-up additions, premium reduction, cash, enhanced coverage, and interest on deposit. The guaranteed cash value starts accumulating from year 5.

Optimax Wealth: Best for early cash value access

Optimax Wealth is designed for those who want faster early cash value build-up and lifetime coverage. It emphasizes liquidity and flexibility, allowing policyholders to access value early through loans or withdrawals to fund opportunities such as education, business expansion, or wealth-building goals.

It offers the same coverage range and limited-pay options as EstateMax, with the addition of an 8-pay option. Optimax Wealth also offers riders such as accidental death, child term, guaranteed insurability, and disability waiver, along with the optional Additional Deposit Option (ADO) for accelerated growth.

Key differences between EstateMax and Optimax Wealth:

About Empire Life’s non-participating whole life plans

Empire Life’s non-participating whole life plans provide straightforward lifetime protection with fixed premiums and guaranteed death benefits. No dividends are payable on non‑par plans. These plans are built for Canadians who want simple, predictable coverage without market fluctuations or dividend variability.

Non-participating plans can help meet goals such as estate preservation, funding final expenses, or leaving a small legacy for children, grandchildren, or charities. Currently, Empire Life offers two non-participating whole life plans:

Solution 100: Best for guaranteed value and flexibility

Solution 100 provides permanent coverage with fixed premiums and guaranteed cash surrender values that begin in policy year 10. It’s ideal for Canadians who want lifelong protection but also appreciate some accessible policy value if their needs change. The policy can be customized with riders such as waiver of premium, guaranteed insurability, AD&D, children’s life, and children’s critical illness riders, among others.

Term to 100: Best for simple, low-cost lifetime protection

Term to 100 offers permanent coverage with fixed premiums and no cash value. It’s a lower-cost option focused purely on lifetime protection, ideal for those who want straightforward coverage for estate or final-expense needs. It offers life pay, with guaranteed level premiums to age 100, and a 20-pay option, with guaranteed level premiums for 20 years. Like Solution 100, Term to 100 can also be customized with riders at an additional premium.

Key differences between Solution 100 and Term to 100:

Pros and cons of an Empire Life whole life insurance policy

Empire Life whole life insurance offers several advantages, from flexible coverage options to unique wealth-building features, along with a few limitations depending on your age and plan type. Let’s take a closer look at the pros and cons of Empire Life Whole Life insurance below:

How much does Empire Life whole life insurance cost?

The cost of Empire Life whole life insurance for a male or female seeking $100,000 in coverage under a 20-pay participating whole life insurance plan ranges from $1,321 to $7,401 per month. The actual premium may vary based on factors such as your age, gender, coverage amount, payment option, and a few other factors.

Cost of Empire Life whole life insurance (2026):

*Illustrating monthly cost of $100k coverage for a participating whole life insurance for 20-pay

Empire Life’s Dividend Scale Interest Rate (DSIR) history

The DSIR reflects Empire Life’s internal expectation of net returns after taxes, claims, and expenses. It is not a return paid directly to policyholders but drives dividend projections. Dividends depend on investment results, policyholder experience, and participating account surplus, and are approved annually by the Board. While dividends are not guaranteed, Empire Life’s narrow 6.0–6.25% band over the past decade showcases its disciplined approach.

Which limited pay whole life insurance plans are available from Empire Life

Empire Life’s EstateMax and Optimax Wealth plans offer predictable long-term growth through a disciplined, conservative investment approach. These participating plans provide lifetime protection with 8-pay, 10-pay, 20-pay, and life-pay options. The 8-pay option is available only with the Optimax Wealth plan.  Limited-pay options allow policyholders to pay premiums over a set period while keeping their coverage in force for life.

What is Empire Life’s side account?

Empire Life’s EstateMax and Optimax Wealth plans include a side account that can hold money for future premiums, policy fees, and rider costs. The account earns interest set by Empire Life, but because it is held outside the policy, the interest earned is taxable. Funds can be withdrawn at any time and are paid to the policyowner on surrender or to beneficiaries upon death. Funds in the side account can be used to pay future base premiums, policy fees, and premiums for eligible riders and additional benefits.

Can I get any living benefits with Empire Life?

Yes, Empire Life offers a Living Benefit Advance on all its life insurance policies as a non-contractual benefit. This benefit means that if the insured is diagnosed with a terminal illness with a prognosis of 12 months or less, they may receive 50% of the death benefit, up to $50,000. The advance plus interest is deducted from the death benefit when the claim is paid.

What is Empire Life’s Kid Start strategy?

Empire Life’s Kid Start is a whole life insurance strategy that uses the tax advantages of individually owned life insurance to help give children or grandchildren a financial head start. It involves purchasing EstateMax or Optimax Wealth when the child is young and healthy, allowing the policy to build cash value that can later be accessed through policy loans or cash value withdrawals. The policy can also be fully paid-up in 8, 10, or 20 years, while ownership can be transferred to the child at the age of majority or later.

What is Empire Life’s Additional Deposit Option?

Empire Life’s Additional Deposit Option (ADO) is available on eligible EstateMax and Optimax Wealth 10-pay, 20-pay, and life-pay participating whole life plans. It allows policyholders to make additional deposits to accelerate cash surrender value growth and increase life insurance. ADO is available for issue ages 0 to 75 and can be used with either paid-up additions or enhanced coverage dividend options. ADO deposits are optional and can be stopped anytime, at the will of the policyholder. 

How does Empire Life compare to other whole life insurance providers?

Empire Life stands out for offering both participating and non-participating permanent life insurance, giving Canadians a choice between dividend potential and straightforward guaranteed protection. Its participating plans, EstateMax and Optimax Wealth, offer lifetime coverage, multiple premium-payment options, and the potential to earn dividends, while Optimax Wealth is one of the few plans to offer an 8-pay option. Its non-participating plans, Solution 100 and Term to 100, provide guaranteed lifetime protection, with Solution 100 also offering guaranteed cash values. To see how Empire Life compares with other leading insurers, read our guide to the best whole life insurance companies in Canada.

Our advisor’s take on Empire Life whole life insurance

At PolicyAdvisor, one of our expert advisors helped a 40-year-old client looking for permanent life insurance that could provide family protection while also building cash value over time. The client was particularly interested in participating whole life insurance, with the potential to earn dividends and access cash value during their lifetime. 

Client profile:

• Age: 40-year-old non-smoking Canadian
• Coverage need: $500,000 in permanent life insurance for family protection and long-term financial planning
• Primary concern: Building cash value while maintaining guaranteed lifetime protection and flexible premium-payment options
• Our comparison: We compared Empire Life’s EstateMax and Optimax Wealth with participating whole life products from other leading Canadian insurers, focusing on dividend potential, cash value growth, limited-pay options, and policy flexibility

Why Empire Life stood out:

• Choice of participating plans: Empire Life offers EstateMax for long-term estate and wealth planning and Optimax Wealth for those who prioritize earlier cash value growth
• Flexible premium-payment options: Empire Life offers 10-pay, 20-pay, and life-pay options on both participating plans, while Optimax Wealth also offers an 8-pay option for those who want to complete premium payments sooner
• Multiple ways to use dividends: Policyholders can choose from several dividend options, including paid-up additions, premium reduction, cash payouts, and leaving dividends on deposit to accumulate

How to buy Empire Life whole life insurance with PolicyAdvisor?

Ready to buy Empire Life whole life insurance? Get a personalized Empire Life whole life illustration and compare it to top Canadian insurers with PolicyAdvisor’s licensed experts.

Get covered in three easy steps:

• Speak with a licensed PolicyAdvisor expert
• Review Empire Life non-participating and participating plans, EstateMax and Optimax Wealth, alongside plans from other top Canadian insurers
• Receive a personalized illustration and finalize your application online

PolicyAdvisor’s licensed experts help you compare options and find the perfect plan for your lifetime coverage and financial goals.

RBC Insurance, backed by one of Canada’s largest banks, offers participating whole life insurance policies that build cash value, provide guaranteed lifelong protection, and the potential to receive policyholder dividends. RBC provides two whole life plans: Growth Insurance and Growth Insurance Plus, each with distinct features. While the former offers coverage starting at $25,000, Growth Insurance Plus starts at $250,000.

Quick review:

• PolicyAdvisor ratings: 4/5
• Best for: Parents seeking permanent coverage for children with a Juvenile Guaranteed Insurability Benefit
• Skip if: You want a 10-pay policy with the option to make additional deposits

About RBC Insurance

Recognized as Canada’s largest bank-owned life insurance company by total revenue, RBC Insurance serves almost 5 million clients globally. In addition to whole life insurance, RBC Insurance also specializes in offering health, home, auto, travel, wealth, and reinsurance advice and solutions to individual, business and group clients. Moreover, with a LICAT ratio of 132%, RBC demonstrates strong financial strength. Its estimated par fund size is $51.39 million, and it has maintained a stable dividend rate over the past few years.

RBC Insurance’s financial strength:

Disclaimer: Figures and ratings are based on the latest available information and may change over time

What is RBC whole life insurance?

RBC whole life insurance provides permanent life insurance coverage with guaranteed cash value growth. It has two participating whole life plans: Growth Insurance and Growth Insurance Plus; both offer limited pay options: 10-pay, 20-pay, or Life pay to age 100 and the flexibility to choose the coverage option from single life, joint first to die, and joint last to die. 

RBC Growth Insurance is available with guaranteed cash value starting at the end of the fifth policy year. RBC Growth Insurance Plus is designed to accelerate tax-deferred growth and provides access to guaranteed cash value from the end of the first policy year. Both plans offer five dividend options, including paid-up additions, cash, premium reduction, dividends on deposit, and enhanced insurance.

Key features of RBC whole life insurance:

Who is eligible for RBC whole life insurance?

RBC whole life insurance is designed for:

• Canadian residents who satisfy RBC Insurance’s underwriting guidelines
• Individuals aged 0 to 80 for single-life coverage and 18-80 years for joint-life policies, with specific eligibility for the Juvenile Guaranteed Insurability Benefit for children aged 0 to 17
• Applicants seeking a minimum of $25,000 in coverage for RBC Growth Insurance or $250,000 for RBC Growth Insurance Plus

What is covered under RBC whole life insurance?

RBC’s Growth Insurance and Growth Insurance Plus whole life insurance plans include the following:

• Death benefit: Provides a tax-free death benefit to beneficiaries when the insured person dies, as long as the policy remains in force
• Guaranteed cash value: Builds cash value over time, which can be accessed through policy loans or withdrawals, subject to the policy terms
• Dividend potential: Participating policies may earn dividends based on the insurer’s performance. The available dividend options include cash, premium reduction, dividends on deposit, paid-up additions, and enhanced insurance. Dividends are not guaranteed
• Optional coverage: Policyholders can add optional benefits and riders to customize their coverage based on their financial and protection needs

What are the different types of RBC whole life insurance?

RBC offers two participating whole life plans with lifetime coverage, guaranteed cash value growth, and the potential to earn dividends: RBC Growth Insurance and RBC Growth Insurance Plus. The premiums from participating policyholders are pooled in RBC’s participating account, and dividends may be paid based on the account’s experience.

• Growth Insurance: Coverage ranges from $25,000 to $25 million. This option is designed for individuals seeking permanent life insurance with long-term cash value growth. Guaranteed cash value becomes available at the end of the fifth policy year. It also includes the Juvenile Guaranteed Insurability Benefit, which allows the policyholder to purchase additional insurance after the child turns 18 without providing additional evidence of insurability
• Growth Insurance Plus: Offers almost the same core benefits of permanent coverage, cash value accumulation, and dividend potential, but is designed for faster cash value growth. Coverage ranges from $250,000 to $25 million, and guaranteed cash value is available from the first policy year, providing earlier access to guaranteed cash value compared with Growth Insurance

RBC Grow Insurance vs Grow Insurance Plus:

What are the dividend options available with RBC whole life insurance?

The dividend options for Growth Insurance and Growth Insurance Plus are the same. Annual dividends can be issued as:

• Cash: You can receive your dividends as cash, though they may be taxable
• Premium reduction: Dividends are applied to your premiums for the following year. Any excess dividends are paid to you directly
• Dividends on 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

Pros and cons of RBC’s whole life insurance

RBC’s whole life insurance plans offer several advantages: multiple payment and dividend options, flexible use of cash value. However, there are also some downsides, like restricted deposit-option eligibility and delayed guaranteed cash value in Growth Insurance.

How much does RBC whole life insurance cost?

The cost of RBC whole life insurance for a male or female seeking $100,000 in coverage for participating whole life insurance for 20-pay ranges between $184 and $619 per month. The actual premium you pay, however, may vary based on factors such as your age, gender, coverage amount, payment option, and underwriting profile.

Cost of RBC whole life insurance (2026):

*Illustrates the monthly cost of $100,000 in participating whole life insurance coverage with a 20-pay option and paid-up additions dividends

Manulife offers permanent life insurance through Manulife Par, a participating whole life insurance policy designed to provide lifetime protection while building cash value over time. The policy combines guaranteed premiums, a guaranteed death benefit, and cash value growth with the potential to earn annual dividends. Manulife whole life insurance plans also come with limited pay options such as pay 10, pay 20, pay-to-90, and pay-to-100. Eligible applicants can also choose Manulife Par with Vitality Plus, which adds Manulife’s wellness rewards program and additional Vitality-related benefits to the core Manulife Par coverage.

Quick review

• PolicyAdvisor ratings: 5/5
• Best for: Added wellness rewards through the Vitality program
• Skip if: You want a broader range of dividend options than cash or paid-up insurance

About Manulife

Manulife operates as one of Canada’s largest participating life insurance platforms, supported by a $15.98 billion participating account. Its participating whole life insurance policies allow policyholders to share in the performance of the participating account through annual policy dividends, subject to the insurer’s dividend scale. For 2026, Manulife has maintained a 6.35% DSIR for participating whole life insurance policies.

Manulife’s financial strength

Disclaimer: Figures and ratings are based on the latest available information and may change over time

What is Manulife whole life insurance?

Manulife whole life insurance is permanent life insurance that stays in place for life as long as the policy remains in force. Manulife’s core plan name is Manulife Par, and there is an option to opt for Manulife Par with Vitality Plus, which provides access to Manulife’s Vitality program. Both options offer 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 policyholder 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.

Key features of Manulife whole life insurance

Who is eligible for Manulife whole life insurance?

Manulife whole life insurance is available to those who meet the following requirements:

• Canadians who meet Manulife’s underwriting requirements
• Individuals aged between 0 and 80 years and 18-80 years for Manulife Par with Vitality Plus
• Individuals seeking at least $100,000 in coverage, although minimum coverage varies by payment option

What is covered under Manulife whole life insurance?

Manulife whole life insurance provides lifelong financial protection, with the policy’s key benefits including:

• Lifetime coverage: A guaranteed death benefit is paid to beneficiaries when the insured dies, or after the last death for joint last-to-die coverage
• Guaranteed cash value: The policy builds guaranteed cash value over time that can be accessed through withdrawals or policy loans
• Potential dividends: Participating policies may receive non-guaranteed dividends that can be taken as cash or used to purchase additional paid-up insurance
• Optional riders: Additional protection can be added through riders such as term insurance, total disability waiver, guaranteed insurability, and child protection riders
• Vitality benefits: Eligible policyholders can access wellness features and rewards through Manulife Vitality, depending on the policy and the insured person’s Vitality Status

Types of Manulife Par whole life insurance

Manulife’s core participating whole life insurance product is Manulife Par, with an enhanced version that has Vitality Plus built in.

• Manulife Par: A participating whole life insurance plan that provides lifetime coverage, guaranteed premiums, guaranteed cash value growth, and a guaranteed death benefit. Policyholders may also receive annual dividends, which can be used to enhance the policy’s cash value and insurance coverage. The available coverage options are single life or joint last-to-die and include Vitality Go™ at no additional cost. The Vitality Go™ rewards you for leading a healthy lifestyle. Also, note that Vitality Go members can upgrade to Manulife Par with Vitality Plus anytime before the policy’s third anniversary
• Manulife Par with Vitality Plus: This version keeps the core participating whole life features of  Manulife Par while building the Vitality Plus wellness program into the policy. With this policy, policyholders can earn rewards for participating in activities that promote healthier living, while the policy continues to provide guaranteed benefits and the potential for annual dividends. Manulife Par with Vitality Plus is available as single life coverage only

Manulife Par and Manulife Par with Vitality Plus:

Pros and cons of Manulife 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. 

A downside of Manulife’s whole life insurance is that Manulife does not offer non-participating plans, and some policy owners may find the dividend and returns structure complex.

How much does Manulife whole life insurance cost?

The cost of Manulife whole life insurance for a 20-pay whole life insurance policy with $100,000 in coverage ranges from $246.20 to $620.71 per month. In the table below, we have listed the cost for a male and a female and how they vary with age. 

Cost of Manulife whole life insurance (2026):

*Illustrative monthly premiums for $100k of participating whole life insurance with a  20-pay premium period

Choosing among Canada’s whole life insurers is genuinely difficult: dozens of companies sell participating policies, and each markets strong dividends, long-term cash value growth, and flexible coverage. At PolicyAdvisor, our team compared leading Canadian insurers to determine the best whole life insurance companies across different needs and profiles.

Quick glance

Here are the top 15 whole life insurance companies in Canada that stand out for their combination of strong performance and flexible plans.

Discover why these companies earned their place in our top 15 below.

Best whole life insurance companies in Canada for 2026

If you become disabled and can no longer work, term life insurance will not replace your lost income. Term life insurance pays a death benefit to your beneficiaries, while disability insurance provides monthly income benefits if an illness or injury prevents you from working. Understanding these options can help you determine whether your existing coverage is enough to protect your income.

Understanding disability and term life insurance

Term life insurance and disability insurance protect against two different financial risks. Term life insurance can help your loved ones manage financial obligations such as a mortgage, debts, and living expenses after your death.

Disability insurance, on the other hand, helps you maintain your financial commitments while you are alive but unable to earn your regular income. It works as income protection insurance. While both policies can be tailored to your financial needs, they differ in their coverage periods, benefit triggers, and payout structures.

Does term life insurance cover disability?

Term life insurance does not cover you if you are dealing with long-term disability, as the policyholder has to be deceased before the death benefit can be paid. However, some life insurance companies in Canada offer optional disability riders. These life insurance riders can be added to your coverage at the time of application and provide options and coverage for the future, should you find yourself dealing with disability. The disability riders, however, are available at additional premiums. 

Disability waiver of premium rider

Under this rider, life insurance premiums are waived if the life insured suffers a total disability. A total disability waiver of premium covers disabilities caused by accidents as well as illnesses. To claim under this rider, the life insured must:

• Not be able to perform essential duties of their occupation
• Not be engaged in any other occupation
• Need ongoing medical care, depending on the policy wording

Generally, disability waiver riders only pay out after the individual has been totally disabled for at least 4 or 6 consecutive months. The rider is valid until a certain age of the person to be insured, most often up to the age of 60 or 65.

Disability income rider

A disability income rider provides monthly payments to the life insured in the event they become disabled and unable to work. The policyholder will need to choose the time period for which the payments are to be made and the monthly payment (which is usually capped). This rider typically has a 30- or 90-day waiting period, with retrospective payments that start after the waiting period is over. 

Disability credit rider

A disability credit rider covers all or part of the life insured’s line of credit or monthly mortgage payments in the event of their temporary or permanent disability. The payments are made for a specified period of time, such as 2 years from disability, 5 years from disability, or up to the age of 65. Credit riders typically have a waiting period of 90 days, although they can be retroactive to 31 days in the event of disability from an accident. Proof of the outstanding loan is usually required at the time of the claim.

What is an extreme disability benefit?

An extreme disability benefit is a built-in feature that lets you access a portion of your life insurance death benefit while you are still alive and experience a permanent and severe disability that meets the insurer’s definition. Instead of waiting for the life insurance policy to pay after your death, you can receive part of the benefit early to help manage significant expenses associated with your disability. 

Both Beneva and Assumption Life offer an extreme disability benefit with their life insurance policies. Beneva includes the benefit and provides an advance of up to 50% of the initial insurance amount, subject to a $250,000 maximum, if the insured remains extremely disabled for six consecutive months. Assumption Life also offers an advance of up to 50% of the insured amount. The maximum benefit is $250,000 for insureds aged 18 to 59 and $125,000 for those aged 60 to 70.

Standalone disability insurance vs. disability insurance riders

The main difference between disability insurance and a disability insurance rider is that disability insurance is a standalone policy, while a disability insurance rider is an optional feature attached to a life insurance policy.

Life insurance companies offering disability riders in Canada 

Examples of insurers that offer these riders include:

• Disability waiver of premium rider: Assumption Life, Beneva, Canada Life, Empire Life, Manulife, Wawanesa, and a few other insurers offer disability waiver of premium riders. Most of these insurers have a 4-6 month waiting period 
• Disability income rider: Assumption Life offers a disability income rider. It provides an income benefit of up to $3,500 per month, subject to policy limits
• Disability credit rider: Beneva, Empire Life, and iA are the top companies offering this rider

What if your term life insurance policy doesn’t offer a disability rider?

Listed below are the options available if your term life insurance doesn’t offer a disability rider:

• Buy standalone disability insurance: A separate disability insurance policy is the most direct way to replace lost income during a disability
• Add a rider later: Some insurers may allow certain riders after issue, but often require new medical evidence, age eligibility, and insurer approval
• Switch policies: You may be able to apply for a new policy with the rider you want, then replace the old one if the new coverage is approved and in force

What should I choose between disability vs life insurance?

Comparing disability insurance with life insurance is not quite an apples-to-apples comparison. Both are valuable protection products with very different use cases, and each can shield you or your loved ones from financial hardship. 

Choose disability insurance if:

• You need protection when illness or injury prevents you from working
• Your family relies on your regular income
• Your employer provides little or no disability protection

Choose life insurance if:

• Your family would need financial support if you pass away
• You want to help cover a mortgage, loans, or other liabilities after your death

Instead of choosing between them, we would recommend having both. You can have both disability and life insurance to protect your income during your lifetime and your loved ones after your death.

Why is a standalone disability policy the better choice for income protection?

A standalone disability insurance policy is generally a better choice for income protection because it is specifically designed to replace a portion of your income if an illness or injury prevents you from working. Disability riders, on the other hand, usually provide more limited protection and may only waive life insurance premiums or provide a specific lump-sum or monthly benefit. 

A standalone disability policy can provide ongoing monthly payments for a longer period, helping you cover essential expenses and everyday living costs while you are unable to work. With a standalone policy, you can also choose coverage based on your income, occupation, waiting period, and benefit period, making it more adaptable to your financial needs.

What happens to your term life insurance if you become disabled?

Becoming disabled does not normally affect or cancel your term life insurance policy. As long as you continue paying your premiums and meet the policy’s requirements, your life insurance coverage generally remains in force.

If your policy includes a qualifying waiver-of-premium rider, you may be able to stop paying premiums while disabled without losing your coverage. Without such a rider, you would still be responsible for paying your life insurance premiums even if your disability prevents you from working.

How to buy disability and term life insurance in Canada?

Our advisors can help you compare term life insurance and disability insurance based on your income, financial responsibilities, existing coverage, and protection needs. They can also help you understand the differences between standalone disability coverage and disability riders available with life insurance.

With PolicyAdvisor, you can compare quotes from leading Canadian insurers and get expert guidance on choosing the right coverage for your situation. This can help you build a combination of life and disability insurance that protects both your family and your income. Schedule a call to get started!

Whole life insurance is a popular kind of life insurance in Canada, offering lifelong coverage while building cash value over time. Participating whole life policies may also provide non-guaranteed dividends, providing additional opportunities to grow the policy value. Since whole life combines permanent financial protection with additional benefits, it can be a valuable tool for long-term financial planning.

Is whole life insurance a bad investment?

No, whole life insurance is not a bad investment option. It is primarily a permanent life insurance option that provides guaranteed lifelong coverage while building cash value. Whether it is a good choice or not depends on your financial goals and the duration of protection you are seeking for your beneficiaries.

Essentially, if you are only looking to temporarily replace income or secure a short-term financial obligation, a term policy will provide a basic, temporary safety net. However, if you are seeking to leave an inheritance or planning a tax-free inheritance for your family, a whole life policy may be a better fit for your needs.

Common misconceptions about whole life insurance

Many people view whole life insurance as a bad investment because of common misconceptions around its higher premiums, slower cash value growth, and lower returns compared with market-based investments. Let’s separate the myths from the facts and look at what whole life insurance actually offers:

Myth #1: Whole life insurance is a bad investment

Whole life insurance is sometimes compared directly with investment options like stocks, mutual funds, or ETFs. However, this comparison fails to consider that whole life is primarily an insurance product.

Whole life insurance is purchased to provide a guaranteed death benefit, while also building cash value in the process. Essentially, it is better to regard whole life insurance as a long-term insurance and financial-planning tool rather than as a direct alternative for investment-focused options like stocks or other conventional methods.

A whole life insurance policy offers a guaranteed death benefit when you pass away, providing your beneficiaries with funds for financial protection and to cover final expenses. This makes it a great tool for leaving an inheritance or for tax-advantaged estate planning. Alongside this, the policy also grows cash value and non-guaranteed dividends over the years.

This cash value can be used as a policy loan, withdrawn, or even used as collateral in an eligible third-party loan. Additionally, if the policyholder receives dividends, they can use them to purchase additional paid-up insurance or reduce premiums.

Myth #2: Whole life insurance is too expensive

Permanent life insurance policies are indeed more expensive than term life insurance. In fact, whole life insurance premiums can be as much as 5 to 15 times more expensive than term policies. This difference can be significant for those looking for a more budget-friendly life insurance policy or higher coverage amounts at lower premiums.

However, this difference in premium cost is not without reason. Whole life insurance offers lifelong coverage, cash value, and an investment component in participating policies. Unlike term insurance, whole life coverage is designed to last a lifetime. It is also worth noting that many whole life policies offer guaranteed and level premiums. If you apply when you are younger and healthier, you essentially qualify for more reasonable rates. 

With term life insurance, your premiums may increase with each term renewal or new application, since the cost is based on attained age and other underwriting criteria. Therefore, comparing term and whole life based on the initial premium alone does not provide a complete picture.

Myth #3: You have to surrender your policy to access the cash value

You do not necessarily have to surrender your whole life insurance policy to benefit from its cash value. While surrendering your policy gives you access to the accumulated cash value, you can also use that value in other ways. Depending on your policy and the terms, you may also be able to:

• Make a partial withdrawal
• Take a policy loan against the cash value
• Use the policy as collateral for a loan

This flexibility can be useful for business owners and corporate-owned policies. A business owner can borrow against the policy or use it as collateral and reinvest the borrowed funds into the business for expansion, acquisition, or other expenses without having to surrender the policy. As long as the policy remains in force, the coverage continues.

Is term life insurance better than whole life insurance?

Neither is universally better since the two policies solve different financial needs. While term is meant to offer protection for temporary financial obligations such as mortgages or loans, whole life policies are meant for lifelong coverage and wealth preservation.

Let’s say you purchase a ten-year term life insurance policy with $50,000 in coverage. The cost of term life premiums will be less than those for a whole life policy with the same coverage of $50,000. If you die during those 10 years, the term policy provides the same $50,000 death benefit at a lower premium cost. However, if you outlive the term and allow the policy to expire, your coverage ends. 

On the other hand, whole life stays in force for life and provides a guaranteed death benefit whenever you die, as long as the premiums are paid. The major difference is that term life insurance protects against the possibility of passing away during a selected term, whereas whole life insurance is designed to provide coverage until the policyholder passes away.

If you are seeking to protect outstanding debts or short-term obligations like mortgages, term life insurance is the way to go. However, if you are looking for permanent protection while also building cash value, whole life insurance may be more aligned with your financial needs.

Should you use whole life insurance for retirement planning in Canada?

Whole life insurance can complement retirement and estate planning, particularly when you already need lifelong coverage. A participating life insurance policy can build cash value on a tax-advantaged basis and may provide non-guaranteed dividends. 

However, whole life insurance should generally complement conventional savings options such as RRSPs and TFSAs. The key to this balance is structuring the policy so that the premiums and future policy value support your retirement goals.

Here are some factors you should keep in mind while using whole life insurance for retirement planning in Canada:

• Budget whole life premiums before retirement: If you expect to continue paying premiums after you retire, it is important to factor those payments into your projected retirement expenses
• Consider a limited-pay whole life policy: Limited-pay whole life policies allow you to complete your scheduled premium payment over a much shorter period, while maintaining lifelong coverage. This can help you finish paying premiums before retirement.
• Use participating policy dividends: If you receive dividends from participating policies, you can use them to purchase additional paid-up insurance or reduce premiums, making it great for retirement planning.

For a detailed overview, check out our guide on Whole life vs. RRSP vs. TFSA: Which builds more wealth in Canada?

Who should buy whole life insurance in Canada?

Whole life insurance is particularly valuable if you are seeking lifelong protection or want to use it as part of a broader strategy involving estate planning or wealth transfer to your beneficiaries, owing to the tax-free payout and tax-deferred growth.

Here are situations when whole life insurance in Canada makes sense:

You need permanent life insurance

Whole life insurance can provide coverage for final expenses, lifelong dependants, estate obligations, or other permanent needs. It is designed for broader protection, rather than covering temporary financial obligations like home loans or debts.

You are a high net worth individual

Whole life insurance is a great tool for high net worth Canadians who have already made effective use of conventional savings and investment strategies. The policy can help in broader estate and tax-deferred wealth-transfer planning. It offers an efficient way of transferring wealth to beneficiaries while providing permanent life insurance protection.

You want to leave an inheritance

Whole life insurance can create a guaranteed inheritance or fund for your beneficiaries such as children and grandchildren, provided you continue to pay your premiums until your death or until the end of the specified policy period.

You are a business owner

If you are a business owner, you can use whole life insurance to provide liquidity after you pass away. The death benefit can be used as a cash flow injection that can also help in funding shareholder agreements or to help address operational or structural challenges the business may face after the owner’s passing.

Who may want to skip whole life insurance?

While whole life is great for those seeking extended coverage for the duration of their lives, it might not be the perfect fit for individuals seeking affordable coverage or short-term protection. If you have temporary or reducing financial obligations, such as a mortgage or outstanding loans, a term life policy will offer you a higher coverage amount at similar premiums.

Similarly, if investment growth is your priority and you do not need permanent life insurance, whole life insurance may not be the right fit for you. Instead, you can invest in traditional options such as mutual funds, stocks, or ETFs.

Final verdict: Is whole life insurance actually bad?

No, whole life insurance is not inherently bad. It provides lifelong protection while building cash value, making it a good investment for Canadians planning long-term coverage. It is particularly well-suited for individuals planning to leave an inheritance or transfer wealth to their beneficiaries in a tax-advantaged manner. 

For Canadians protecting a short-term financial liability, term life insurance is usually the most cost-effective option since it provides a large amount of coverage when it is needed the most.

On the other hand, if you are a high net worth individual or you have maxed out your RRSPs or TFSAs, you can consider whole life insurance to leave behind an inheritance or cover final expenses and other costs.

Still confused about whether whole life insurance is right for you? Speak to our advisors and compare quotes from leading Canadian insurers to see what best fits your financial situation and needs.

As a couple, managing finances means sharing major responsibilities, such as a mortgage, raising children, paying off debts, or planning for retirement. For most Canadian couples, two separate term life insurance policies are considered the best default choice because they provide two death benefits, flexible coverage amounts, and separate beneficiaries.

While separate life insurance policies are the best fit for most couples due to their flexibility, joint life insurance can be a more suitable and cost-effective option for couples who want to protect shared financial obligations, simplify policy management, or reduce policy fees.

Comparing life insurance options for couples in Canada

Each policy type has its own series of benefits and features. Two separate term life policies are ideal for families, while joint first-to-die life insurance is ideal for individuals seeking protection for mortgages and other major expenses. Meanwhile, a joint last-to-die policy is well suited for estate planning and creating a legacy.

Here’s a comparison of the major life insurance options available for couples in Canada:

It is also worth noting that many insurers offer a conversion or survivor privilege when couples purchase life insurance. This allows the surviving partner to purchase a new individual policy within a short window (usually 30 to 90 days) without undergoing a medical exam or answering new health questions.

Top 5 best life insurance companies for couples in Canada

Choosing the right life insurance company for couples is just as important as choosing the right type of policy. While many insurers offer great benefits, the following companies offer greater flexibility, built-in benefits, and features that make them particularly suitable for partners with shared financial goals.

Here’s an overview of the five best life insurance companies for couples in Canada:

BMO Insurance

BMO Insurance is an excellent choice for couples who want their coverage to remain stable even after a life-changing event. Even if one insured person in a joint policy passes away, the surviving insured member can continue coverage at the same premium, provided the coverage amount remains unchanged.

This feature is great for couples seeking hassle-free coverage, especially at older ages when premiums are higher. In addition, BMO also offers the Empathy service, which provides emotional and logistical support to the policyholder’s beneficiaries.

Beneva

Beneva is well suited for couples who want more than just a death benefit. The policies include valuable built-in features such as the Extreme Disability Benefit and Guaranteed Insurability Option, ensuring policyholders can increase coverage later on without additional medical underwriting (under qualifying circumstances).

Additionally, eligible policies also have the option to add valuable riders such as child coverage and accidental death benefits, allowing couples to customize their protection and help ensure the financial safety of their beneficiaries.

Empire Life

Empire Life has one of the most seamless application processes, combining a streamlined online application process with competitive policy features. Couples can benefit from policy fee savings, strong term conversion options, and the ability to choose from a wide selection of term and permanent life insurance plans.

Policyholders can also add critical illness insurance under the same policy, making it easier for them to build a comprehensive financial protection plan. Additionally, the joint first-death plan offers temporary insurance to the surviving partner for an additional 90 days. This gives the spouse time to figure out their next steps without suddenly being unprotected.

RBC Insurance

RBC Insurance stands out for its Pick-a-Term feature, which lets partners choose a customized term length rather than selecting only standard options such as 10 or 20 years. This flexibility allows them to match coverage with major financial obligations like mortgages, education, or even retirement planning.

Many eligible policies also feature a seamless conversion option, allowing couples to transition from term to whole life without additional medical underwriting. Couples can also benefit from policy fee savings when purchasing joint coverage.

Manulife

Manulife is an excellent option for couples who want to combine life insurance with wellness incentives. Through the Manulife Vitality program, policyholders can earn points and receive rewards for maintaining healthy lifestyle habits, such as exercising, participating in activities, and completing health assessments.

Additionally, Manulife life insurance offers a Waiver of Premium option for couples. If either partner becomes totally disabled due to injury or illness, the premiums for the entire joint policy are waived, ensuring coverage remains active while household income is impacted.

Quick overview of the five best insurance companies for couples in Canada:

How much life insurance coverage do couples need?

For many Canadian families, a rule of thumb is to purchase life insurance worth 7 to 15 times your annual income. However, this is just a baseline and should be adjusted based on your financial situation.

A great method of calculating how much coverage you need is to use the Debt, Income, Mortgage, and Education (DIME) method. It is a simple way to estimate how much life insurance you may need by considering four key financial obligations your beneficiaries could face.

Use our life insurance calculator to estimate how much coverage you need.

What mistakes do couples make when buying life insurance in Canada?

Many couples purchase life insurance to protect their loved ones, but choosing the wrong policy, waiting too long, or having insufficient coverage can leave their family financially vulnerable.

Here are some of the common mistakes you should avoid as a couple while purchasing life insurance in Canada:

• Waiting too long: Many couples postpone buying life insurance until they have children or purchase a home. Purchasing coverage early protects you from higher premiums later on due to age and health conditions
• Buying too little coverage: Some couples choose the lowest premium without considering how much coverage their family would actually need. Ensure the policy amount sufficiently covers debts, future income replacement, and living expenses
• Choosing the wrong type of policy: Many couples automatically choose a joint policy because it appears simpler or less expensive. However, a term life policy or a joint last-to-die policy might offer better estate planning and coverage in certain situations
• Forgetting the Stay-at-Home Partner: Many couples think they only need insurance on the person who earns the most money. If a stay-at-home partner passes away, the surviving partner must pay for child care, cleaning, and cooking.
• Not reviewing coverage after major life events: Many couples forget to review their coverage amount or duration after major events like child birth, starting a business, purchasing a home, or taking on significant debt. This can leave them without sufficient coverage or term in the future.

Can you change or cancel your life insurance policy as a couple in Canada?

Yes, most life insurance policies in Canada can be changed or cancelled. However, your available options depend on the type of policy you own and the rules specific to your insurer and policy. Common changes include increasing coverage, converting term coverage to permanent coverage, or replacing a joint policy with individual policies.

Here are some of the most common changes couples make to their life insurance coverage:

It is also worth noting that most policies include a “free-look” period to review and cancel for a refund. As a couple, you should review your life insurance coverage and goals after major life events, such as purchasing property, having children, or planning for retirement. Contact our advisors today for a comprehensive plan based on your needs.

Our advisor’s take on the best life insurance for couples

At PolicyAdvisor, we recently helped a married couple in their early thirties secure life insurance after purchasing their first home and welcoming their first child. They were seeking coverage to ensure the surviving spouse could continue paying the mortgage, replace lost income, and support their child.

Client profile

• Ages: 32 and 34 years
• Family: Married with one young child
• Primary concern: Income replacement and mortgage protection
• Existing debt: $620,000 mortgage
• Coverage goal: $1.5 million in total life insurance
• Approximate monthly premiums: $332.1 (Male) and $288.45 (Female), respectively

Why we recommended separate term life insurance

• Each spouse required a different coverage amount based on their income and financial responsibilities 
• Separate policies ensured both partners remained insured even if one policy paid a death benefit 
• The policies included the option to convert to permanent life insurance if their long-term financial goals changed 
• Affordable monthly premiums allowed them to get higher coverage without exceeding their budget 

How to purchase life insurance for couples in Canada?

PolicyAdvisor’s licensed life insurance advisors can help couples compare life insurance quotes from leading Canadian insurers based on their ages, budget, coverage needs, and financial goals. They can help you estimate your coverage and decide between joint and separate policies.

Whether you are newly married, raising a family, or planning your estate, PolicyAdvisor can help you compare quotes and apply online with licensed advisors. We will compare policy types, term lengths, and riders to help you choose the right protection for you and your loved ones.

Frequently Asked Questions

What is the best life insurance for couples in Canada?

For most Canadian couples, two separate term life insurance policies are the best option. They offer better flexibility and allow each partner to choose their own coverage, beneficiaries, and riders with ease.

Is joint life insurance cheaper than separate policies?

Joint life insurance can sometimes have lower premiums than purchasing two comparable individual policies because both partners are insured under a single contract. However, it only pays one death benefit. Once it is paid, coverage ends.

Can common-law couples purchase life insurance together?

Yes, most Canadian insurers allow common-law partners to purchase either separate or joint life insurance policies if they meet the insurer’s eligibility requirements. Coverage options are usually the same as those available to married couples.

Can couples have different coverage amounts?

Yes, if you have separate life insurance policies. Since each policy is its own contract, you can choose to customize it based on your needs. Additionally, you can choose separate beneficiaries.

Can couples buy life insurance online?

Yes, couples can buy life insurance online. Our trusted advisors at PolicyAdvisor can help you compare quotes.

Can we name a minor child as beneficiary?

In most cases, appoint a trustee for any minor’s share so funds can be managed for the child’s benefit until they reach the age of majority in your province.

What if one of the partners has a health condition?

You can consider separate policies so one partner’s health does not influence the other’s pricing or approval. Consider exploring fully underwritten, simplified issue, or guaranteed issue options, depending on your situation.

What happens to joint life insurance after divorce or separation?

This depends on the policy terms and agreement between the policyholders. Some joint life insurance policies can be split into separate policies or transferred to one partner, while others may need to be cancelled.

Whole life insurance is a type of permanent life insurance policy available in Canada. Unlike term life insurance with a fixed term, whole life offers guaranteed coverage for your entire lifetime while building cash value.

As long as you continue paying the required premiums, your policy continues to be in effect till you stop or pass away. It comes as no surprise that many Canadians choose it for lifelong protection and tax-advantaged cash growth.

What is whole life insurance in Canada?

Whole life insurance is a type of permanent life insurance that provides coverage for your entire life rather than a limited term. In exchange for regular premium payments, the insurer guarantees a generally tax-free death benefit (unless they exceed the policy’s adjusted cost basis) to your beneficiaries when you pass away.

Unlike term life policies, whole life insurance also includes a guaranteed cash value component that accumulates over time. Depending on the policy you select, the plan may also earn annual dividends that can further supplement your death benefit and cash value. As a result, premiums are typically 5 to 10 times higher than those of comparable term life policies. 

For example, a healthy 35-year-old parent may be able to purchase $500,000 in term life coverage for somewhere between $25 and $40 per month. The same amount of coverage for whole life insurance could cost around $250 to $400 per month. While whole life insurance costs significantly more, the higher premiums reflect its lifelong coverage, guaranteed cash value, and potential dividend growth.

Whole life insurance in Canada: At a glance