If you’re the kind of person who likes to cut your cake and eat it too, whole life insurance could be your perfect financial solution. It combines the peace of mind of life insurance with investments that let you pocket some extra cash while you’re still around.

Think of this article as your easy guide to understanding what is whole life policy, how it works, and how you can best use it to your advantage. Let’s take a look.

Also check out our quick video on Whole Life Insurance Explained below!

What is whole life insurance?

Whole life insurance is a type of permanent insurance that covers you for your entire life and allows you to access a part of the death benefit as cash value during your life. Some policies also pay dividends, further helping you to grow your wealth over time.

It’s the perfect coverage for long-term needs such as estate planning or leaving an inheritance for your loved ones.

The best companies for whole life insurance in Canada include Manulife, BMO Insurance, Sun Life, Empire Life, Desjardins, and more. The one you should choose depends on your needs.

Our expert advisors have ranked the top 15 Canadian whole life insurance providers to help you find the perfect match. We’ve ranked them based on the best for performance, the best for added features, the best for children’s policies, and more.

Keep reading to see our ratings and reviews of the best companies for whole life insurance in Canada!

The best whole life insurance in Canada 2024

Our team at PolicyAdvisor.com has spent years studying the industry to bring you a list of top companies with the best offerings in different categories.

The following reviews are a must-read for anyone thinking about purchasing whole life insurance. They will help you decide the best options for you and your family.

Full list: 15 Best Whole Life Insurance Companies in Canada – March 2024

• Assumption Life: Best for quick issue
• Beneva: Best for complimentary additional features
• BMO: Best for non-participating plans
• Canada Life: Best for charitable giving
• Canada Protection Plan: Best for non-medical
• Desjardins: Best for paying off premiums early
• Empire Life: Best for balanced performance
• Equitable Life: Best mutual company
• Foresters: Best for smokers
• iA: Best for health accommodation
• Manulife: Best for overall performance
• RBC: Best for children’s plans
• Sun Life: Best for high net-worth individuals
• UV: Best for long-term growth
• Wawanesa: Best value for guaranteed benefits

Assumption Life Whole Life Insurance Review

Canada’s best whole life insurance for:
Quick-issue policies

Assumption Life Insurance wins the award for its potential for a fast-issue policy with no doctors or blood tests. They don’t ask you to do a medical test if you’re 18-45 and if you want whole life insurance coverage up to $999,999. This is sometimes called accelerated issue policies.

As you get older, they may not give you accelerated issue for as much coverage. But you can still get up to $50,000 without a medical exam up to age 69.

But that’s not the only reason Assumption came out on top in our rankings. They offer two types of coverage: one that pays dividends (participating) and one that doesn’t (non-participating). If you choose the participating policy, you have 5 options for how you get dividends, and you can change your options every year.

They also offer extra options called life insurance riders to help you add more coverage. And, if you want a plan without answering any medical questions at all, they also offer non-medical plans.

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Beneva Whole Life Insurance Review

Canada’s best whole life insurance for:
Complimentary additional features

Beneva whole life insurance products are a good choice if you want a whole life policy that includes additional benefits. Their plans have all the usual benefits included in a whole life insurance plan. But their plans can also:

• Cover multiple lives — up to 5, depending on the plan
• Include 4 benefits free of charge to give you additional coverage: Extreme Disability Benefit, Disability Waiver of Premium Benefit, Accidental Death & Dismemberment (AD&D) Benefit, and Accidental Fracture Benefit
• Have 2 rider options, which can give you extra coverage at a low price: Critical Illness Insurance Rider and Child Rider

They give you several payment options if you want to finish paying your life insurance premiums early. And you can get policies without a medical exam with their simplified or guaranteed plans.

Most of Beneva’s plans are life insurance with cash value but not dividends. But they do offer Universal Life Insurance, which is a permanent life insurance plan that pays out dividends but comes with a higher risk.

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BMO Whole Life Insurance Review

Canada’s best whole life insurance for:
Non-participating plans

Bank of Montreal (BMO) is a great choice for people who want whole life insurance with cash value and aren’t too concerned about getting dividends.

Their policies are all non-participating, so you don’t get dividend payments. But you get cash value and a yearly Performance Bonus that you can use similarly to how you would use dividends.

BMO Insurance also gives you A LOT of choices for how to handle your life insurance costs:

• Premium switching, which lets you change your premium payment period
• Premium offset, where you can stop paying premiums and have them deducted from your paid-up cash value instead
• Additional payments, where you can pay extra premiums to increase the death benefit and cash value
• Policy loans, where you can borrow against your cash value

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Canada Life Insurance Whole Life Insurance Review

Canada’s best whole life insurance for:
Charitable giving

Canada Life’s My Par Gift is the perfect plan for people who want to leave a lasting impact by donating to charity. This whole life policy was created just to help you do that.

You just pay one tax-advantaged lump sum premium of $10,000 and the policy is locked in. The charity receives the policy’s cash value and dividends, which they can then use however they need to.

Once you pass away, the charity receives the full death benefit. This means you can help the charity and its work for more than a lifetime.

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Canada Protection Plan Whole Life Insurance Review

Canada’s best whole life insurance for:
Non-medical coverage

Canada Protection Plan is a great option if you want whole life coverage without taking a medical test. The plans are non-participating, so you will not get dividends. But they’re still straightforward, affordable life insurance policies that can give you at least $10,000 in coverage.

Their plans are also good for funeral insurance. This type of insurance covers expenses related to the end of life, such as funeral costs or any remaining debts.

CPP gives you a wide range of coverage options if you have health isssues, so your chances of finding a plan that fits your needs are very high.

They also have regular policies for people who are healthy and who want quick approval.

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Desjardins Whole Life Insurance Review

Canada’s best whole life insurance for:
Paying off premiums early

Desjardins gives you some of the best options to pay off your policy early so you only have to pay it for a certain number of years. This is called limited pay, and Desjardins is one of the only Canadian companies that lets you pay it off in as little as 5 years.

You pay higher yearly or monthly premiums for those 5 years only and then you don’t have to pay anything else for the rest of your life. Or you can choose to pay in 10, 20, 15 years, or until age 100.

When you choose limited pay, you can rest easy knowing you have lifetime protection, cash value growth, annual dividends, and no more bills!

Desjardins’ plans also come with a lot of benefit options you can add on for even more coverage. They offer basic plans without dividends, and a special permanent life policy for seniors 50+ who don’t want to take a medical exam.

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Empire Life Whole Life Insurance Review

Canada’s best whole life insurance for:
Balanced performance

Empire Life’s whole life product, EstateMax, is a great option for people who want to build wealth in the long term and increase their life insurance payout. They don’t give the highest cash values in the Canadian market, but they’re far from being the lowest.

This is a good choice if you want steady, secure growth — especially the longer you have your policy.

Their Optimax plan is also designed specifically for people who plan to retire soon and want to access their plan’s cash value in the policy’s first 20 years.

Empire’s policies can be just as affordable as some Term-to-100 policies. It’s no wonder they’re one of the most popular choices for whole life coverage in Canada.

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Equitable Life Whole Life Insurance Review

Canada’s best whole life insurance for:
Mutual values

If you specifically want to work with an insurance company that is partially owned by the people who have insurance with them, Equitable Life may be the right choice for you.

This is called a mutual company. This kind of business doesn’t have to answer to stakeholders or market pressures like other carriers do. They can sometimes offer more competitive rates on insurance as a result.

There are other insurance mutuals, like Beneva and Wawanesa. But we feel their strongest points are in other areas, so Equitable takes the cake in this category.

Equitable only offers whole life policies that earn dividends, and their cash values can grow quite well in the long run.

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Foresters Financial Whole Life Insurance Review

Canada’s best whole life insurance for:
Smokers

If you’re planning to quit smoking, wouldn’t it be better if someone was paying you to do it? Foresters Life Insurance doesn’t exactly give you money, but their Quit Smoking Incentive Plan is a great motivator.

Smokers usually get charged more for life coverage, or they can be denied completely. Foresters Financial offers the opposite. They give you lower rates if you commit to stop smoking within 2 years.

That’s more air in your lungs, more money in your wallet, and lifelong coverage that your family can rely on!

All of Foresters’ plans give you cash value, and some also pay dividends. Plus, they have a wide variety of life insurance options for people who have health issues.

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Industrial Alliance Whole Life Insurance Review

Canada’s best whole life insurance for:
Health accommodation

If you have health issues, you should seriously consider Industrial Alliance (iA) for your insurance needs. They have something called a Superior Risk Tolerance Program, where you’re more likely to get approved even if your health isn’t in peak condition.

You can get a participating or non-participating plan, and they give you a lot of flexibility. You have options like:

• Limited pay options to pay off your premiums early
• Cover up to 9 people under the same policy
• Optional life insurance riders and benefits to add to your coverage
• Pay premiums semi-annually, instead of monthly or yearly like most providers

Of course, many Canadian companies also offer no-medical insurance — which we rated Canada Protection Plan as the best in. But if you want standard coverage despite health concerns, iA is a great choice too.

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Manulife Whole Life Insurance Review

Canada’s best whole life insurance for:
Overall performance

There’s a reason why Manulife is one of North America’s largest life insurance companies. They’re quite successful and most of their products are high-quality. In Canada, their whole life plans are no different.

If you want all-around good performance that you can rely on, Manulife is a great choice. They offer both participating and non-participating plans, and plans that don’t make you take a medical exam.

You get all the standard benefits of a whole life policy with Manulife. And, they even give you the option to change your mind and choose a different payment option if you like.

Choose Manulife if you’re not really looking for anything specific but need a policy that checks all the boxes:

• Affordable
• Flexible
• Reliable
• Robust investment options
• Good amount of coverage
• And more!

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RBC Whole Life Insurance Review

Canada’s best whole life insurance for:
Children’s plans

If you’re looking to buy the best whole life insurance for children, Royal Bank of Canada (RBC) Insurance could be a great option.

They have a special feature called the Juvenile Guaranteed Insurability Benefit that will give children a financial leg-up once they grow up. This benefit acts like a Hall Pass for your child or grandchild. When they reach adulthood, they can buy a new policy or add more insurance to their plan without having to take a medical test or go through any hassle to get approved.

Many other companies will give you the option to buy this kind of benefit — but RBC includes theirs for free! This is why we have to recommend them for whole life insurance policies for children in Canada.

Their plans are great for other uses too, like estate planning or just long-term financial planning in general.

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Sun Life Insurance Whole Life Insurance Review

Canada’s best whole life insurance for:
High net-worth individuals

The more you earn, the more insurance you’ll likely need. You’ll want to choose a provider who you know can provide those high amounts of coverage, and Sun Life Insurance is exactly that choice.

Sun Life is another one of Canada’s largest life insurance providers. They offer a minimum coverage amount of $250K, which is way higher than the $10,000 or less some other providers start with.

They offer plans with just cash value (non-participating) and plans with both cash value and dividends (participating). Plus, even if you have health issues you can apply for their plans that don’t ask you to take a medical exam.

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UV Whole Life Insurance Review

Canada’s best whole life insurance for:
Long-term growth

If you want an insurance policy that can give you a LOT of growth over years, UV just might be the right pick for you. They just came out with a new Whole Life High Values plan in 2022 (fairly recent for insurance!) that promises your patience will pay off.

If you keep the plan until you’re 65, your cash value growth could be as much as 50% of what your original coverage amount was with this high-performance plan. That’s no small figure!

UV also gives you life insurance options if you have health issues. But UV’s plans are all non-participating, so you won’t get any dividend payments from them.

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Wawanesa Whole Life Insurance Review

Canada’s best whole life insurance for:
Value for guaranteed benefits

Most investments involve some level of risk. Not so with Wawanesa! They offer high cash values that you can access early on if you need to, especially if you pay the policy off in 20 years.

With Wawanesa, there’s a very good chance you will “break even” — have a higher cash value than the entire amount of premiums you paid to the company in those 20 years or less!

They give you more insurance coverage and have some of the lowest whole life insurance quotes in Canada. It’s no surprise that they’re one of the most affordable options people choose.

You get to choose between a participating or non-participating policy, or one that doesn’t make you take a medical exam.

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Why should I get permanent life insurance Canada?

There are 3 very good reasons why you should get permanent life insurance:

1. To cover your final expenses
2. To access cash value now/during retirement
3. To plan your estate

Of course, you don’t need to fit into just these categories to get permanent life insurance quotes. Most people can benefit from whole life insurance in Canada one way or another!

If you’re unsure, speak with an advisor or insurance broker to find out if a permanent plan can work for you.

Great-West Life went through major changes in the company’s structure in 2020. The following is a brief history of Great-West Life Insurance, the current status of the company, and how to reach them regarding your policies.

History and Ownership: Great-West Life Assurance Company

Great-West Life Assurance Company was founded and incorporated in the year 1891 in Winnipeg, Manitoba. It wasn’t until 1942 that Great-West Life became the first Canadian company to enter into the accident and health insurance business.

Jeffrey Hall Brock started the company due to a lack of insurance options offered to Western Canadians at the time. The head office was developed within the “Exchange District” of Winnipeg, which is located on the corner of Rorie Street and Lombard Avenue.

Interestingly, in 1912, two Great-West Life policyholders were passengers on the Titanic, and the company covered their policies with no questions asked (Great-West Life was also responsible for the first death payout of a policyholder in 1893). The word assurance was used instead of “insurance” during these early days, as that was the term more commonly used throughout the British Commonwealth.

Merger and consolidation as Canada Life

Over the years they would become colloquially known as Great-West Life above anything else, although the beginning of 2020 brought a big change for the company. In 2019, the company announced it would be merging its brand with other companies under the same ownership, London Life and Canada Life.

The company is now known as Canada Life, although there are times where you will see references to Great-West Life through the transition period over the next few months and years. Rest assured, all of the policies you had before this merger will continue with the newly combined companies. These companies have a deep history in the Canadian insurance landscape.

London Life Insurance Company

London Life Insurance Company is almost 140-years old and was responsible for serving well over 2 million Canadians. They previously merged with Great-West Life in 1997 when they completed their first merger until the company merged again with Canada Life in 2003 while retaining its branding and still operating as a separate entity.

London Life is known for its “Freedom 55” motto, which refers to its financial services which aim to help their customers save enough money to where they can retire at the age of 55.

Canada Life Financial Corporation

Hugh Cossart Baker Sr. founded the Canada Life Assurance Company on August 21st, 1847. The firm was officially incorporated in 1849, and had to fight off a takeover bid by Manulife in 2003; this led to their eventual acquisition by the Great-West Life Assurance Company (through owner Power Financial Corporation) in that year.

The very first head office of Canada Life Assurance Company was located in Hamilton, Ontario, eventually moving to what is now known as the “Birks Building” (on King Street East and Hughson Street South in Hamilton). They moved several other times, once to the Canada Life Building that was finished development in 1895, and once more to their eventual Toronto headquarters in 1900.

Cawthra House was the company headquarters from 1926 to 1929 at King and Bay Streets in Toronto. They acquired and founded additional sister companies like Canada Life (UK) and Crown Life Insurance Company of Canada (CLICC).

What is Great-West Life Called now?

Canada’s Minister of Finance provided the final approval of amalgamation (the process of a company and their holding companies combining to become one large entity) of the Canadian insurers on November 25, 2019. The corporations and subsidiaries that were merged to create what we now know as The Canada Life Assurance Company are:

• Great-West Life Assurance Company
• London Life Insurance Company
• Canada Life Assurance Company (and their holdings)
• Canada Life Financial Corporation
• London Insurance Group Inc.

All of these companies operated as separate entities until January 1st, 2020 when the merger became official and The Canada Life Assurance Company began operation. Canada Life is now considered one of the country’s biggest life insurance companies and administers any insurance plan once owned by Great-West Lifeco.

Great-West Life Insurance products

Great-West Life offered many different types of insurance before the merger took place. Below you’ll find a list of the many products and investment management services that Great-West Life Insurance offered to their customers:

• Term Life Insurance
• Permanent Life Insurance
• Universal Life Insurance
• Disability, Critical Illness and Health Insurance Benefits
• Dental Insurance and other workplace benefits
• Financial Plan Services and Financial Security Advisors
• Wealth Management Products and Investments

What happened to my Great-West Life insurance policy?

Any insurance policies previously held with Great-West Life will now be serviced by Canada Life; you can find all of the information surrounding your coverage on the Canada Life website. As of January 1st, 2020, all of the contracts and policies associated with any of the merged companies transferred over to The Canada Life Assurance Company.

Amalgamation allows all of your policies and contracts to remain unchanged, so you will continue to benefit from their services as you would in the past. The Canada Life Assurance Company is dedicated to providing clients with the best coverage possible as they complete all aspects of this merger. The companies merged to provide improved customer service, more reliable coverage, and an overall better experience for all clients. Thus everything, like your contact details, benefits information, direct deposit and Groupnet details, your plan number, and more remains unchanged as your policy is served by the new Canada Life.

If you’re wondering how you can file a claim with Great-West Life Insurance, all you have to do is contact Canada Life for more information.

How do I submit a claim to Great-West Life?

You likely have questions surrounding your Great-West Life insurance policy and whether you’re still covered (the short answer is yes), and in turn, you might wonder who you’re supposed to contact. The goal of Great-West Life’s merger is to provide customers with a superior experience, as there are more assets to work with that will help improve their service and offer more flexibility in how they service their customers.

You don’t have to sign any paperwork or fill out any forms to ensure that your policies are carried over during the merger; this is an automatic process. That said, if you have any questions about submitting a claim, your policy, or your coverage details, you can always contact Canada Life for more information or access their support page (canadalife.com/support).

Websites and almost anything associated with Great-West Life is still being updated, which is why you may still see references to the recently merged company.

Life insurance policies are incredibly flexible and customizable. Not only do you have the choice between term life insurance and permanent life insurance, but you can also add life insurance riders to tailor a policy to exactly the coverage you need. That said, there are situations where you may need to think about changing your coverage or adding more policies to the coverage you already have.

It may seem strange to hold more than one life insurance policy simultaneously. Is it even allowed? We answer that and more below.

Can you have multiple life insurance policies?

Yes, in Canada it is perfectly legal and common to have multiple policies.

While there is no legal maximum number of policies (so you can have 2 life insurance policies or many more), insurance companies will look at the total amount of coverage you are seeking to determine whether it is reasonable and consistent with your needs.

In fact, you may already be covered by multiple policies and not even know it.

As most workplace insurance benefits include one life insurance policy, you would hold multiple policies if you took out any coverage on your own.

Beyond that specific situation, you can choose to have multiple life insurance policies of your own, from separate life insurance companies if you choose.

But why wouldn’t someone just get the coverage they need and hold only one life insurance policy?

Pros and cons of holding multiple life insurance policies

Can you apply to multiple insurance carriers at once?

Yes, you can apply to multiple insurance carriers, but there are often better and faster ways to get multiple life insurance policies then applying to several providers at the same time.

In North America, insurance companies share limited information regarding insurability of an applicant through a regulated body called the Medical Information Bureau (MIB). They do this to enhance transparency and consistency of information between the companies.

In rare cases, the information the MIB provides prevents the more unscrupulous applicants from holding too many policies simultaneously or providing false information to get insured by one company after getting declined by another.

If you are sending out multiple life insurance applications at the same time, it will raise some red flags among the providers and the MIB.

This will slow down your approval while they asses whether you have a good reason to apply to multiple carriers and in rare cases it may result in you getting out-rightly denied for coverage.

What are the alternatives to buying multiple life insurance policies?

There are many alternatives to applying for more than one life insurance policy:

• Using riders such as term riders or accidental death riders. They can be added to a base life insurance policy rather than buying the individual coverage.
• Adding guaranteed insurability. You can increase coverage in the future to meet your evolving needs.
• Converting your existing term life insurance policy – or a portion of it – into whole life insurance using the conversion feature.

In any case, enlist the help of an experienced digital broker like PolicyAdvisor whether you need one life insurance policy or think you will end up owning several.

We have the institutional knowledge and experience to help you navigate multiple applications and approvals, ensuring we don’t step on any toes as we present you with the potential costs and savings of multiple life insurance policies. Schedule a call today to get started.

Will all the policies pay out in full in the event of a death benefit?

Yes. You can claim on multiple policies and death benefits will be paid as per individual policy approvals and exclusions, if any. Life insurance policies do not coordinate or adjust benefits for other individual coverage that is in place.

Can you increase your life insurance coverage by buying several policies at once?

As mentioned above, yes – but within limits. Holding multiple policies is a common way for one to increase their life insurance coverage, but an insurance provider approves policies not only based on your health but also on the legitimacy of your coverage needs and your perceived ability to keep up with your monthly insurance premiums.

Overextending your finances to maintain several large life insurance policies does not make sense if the end result is you not having coverage at all.

Instead, calculate the right amount of coverage for your needs and contact a trusted broker to help tailor a life insurance coverage plan that works for your needs AND your budget.

You can expect to pay anywhere from $45-100 per month for whole life insurance. But nailing down the exact cost of whole life life insurance can be tricky. First off, “whole life” is often used as a catch-all term for all types of permanent life insurance policies, when it’s actually just one type of permanent insurance. Secondly, whole life insurance has a lot of policy options that affect the price.

In this article, we’ll break down what whole life insurance is and all the factors that influence the monthly premium, so you can find out if whole life insurance is worth it.

What is whole life insurance?

Whole life insurance protects you for your entire life, paying out a tax-free lump sum of cash to your estate or your beneficiaries when you pass away. The policy length is not a particular term, it lasts for as long as you live. As long as you pay your life insurance premiums, your policy never expires — it’s as simple as that.

Whole life policies come with a living benefit called a cash value component. As you pay your premiums over your lifetime, part of that money is invested and generates a tax-deferred cash value that grows over time.

Whole life insurance is just one type of permanent coverage. There are also other types of permanent life insurance like universal life insurance and term to age 100 insurance.

Participating whole life insurance price vs. non-participating whole life insurance

Beyond the perk of cash value, some whole life insurance policies, called “participating policies,” offer additional investment perks. Whole-life policies that just have the cash value and no additional investment perks are known as “non-participating.” Whether your policy is participating or not has a large influence on the cost of life insurance.

• Participating Whole Life Insurance
  In addition to accessing the cash value, the policyholder also receives dividends – typically annually. They “participate” in the insurance company’s investments because their premiums are used for the investments. Because of this additional growth generation component, participating policies are more expensive than non-participating policies. 
• Non-Participating Whole Life Insurance
  The policyholder does not receive dividends and thus premiums are guaranteed, level, and generally lower.

How you pay your premiums will also have an effect on the cost of your whole life insurance. 

• Life Pay Whole Life Insurance
  You pay the premiums for your entire life and receive coverage for life. 
• Limited Pay Whole Life Insurance
  You only pay premiums for a set amount of time, not your entire life, but still get coverage for your whole life. It’s like an accelerated payment plan. Because of this limited pay period, the premiums are typically higher. 

How much does whole life insurance cost?

For non-participating whole life insurance, you can expect to pay around $65/month for $100,000 in coverage, if you are in your 30s and in good health. The average cost for participating life insurance is about $75 for the same amount of coverage.

As we hinted above, whole life insurance tends to be more expensive than term life Insurance rates because the payout is guaranteed at the end of your life and there is a savings component to the policy.

Additionally, as with other types of insurance, whole life coverage costs more as you age. The later you buy, the less time your insurance companies has to collect enough premium to pay for the cost of insurance before they have to make a guaranteed payment. With that said, the chart below is a sample of average life insurance rates by age for whole life insurance.

Whole life insurance quotes in Canada

*Quotes based on $100k in coverage for a non-smoker in regular health on a life-pay plan. Quotes based on average prices from leading insurance companies in Canada.

Whole life insurance calculator Canada

Wondering how much insurance you might need? The above numbers give you some idea what Whole Life Insurance might cost, but check out our life insurance calculator to get a full, holistic view of what it takes to solidify your financial security. There you can start comparing quotes and insurance plans for whole life coverage.

What affects the cost of whole life insurance?

The cost of insurance in Canada can change depending on your personal details and also your policy’s details. 

Personal Factors

• Age and Birthday
  Life insurance costs increase with age due to higher statistical risks.
• Gender
  Women generally have lower life insurance costs due to longer life expectancy.
• Smoking Status
  Smoking significantly raises life insurance premiums. Products like cigarettes, e-cigarettes, and marijuana usage impact rates. Quitting smoking for 12 months may lead to cost savings.
• Health History
  Healthy individuals with good BMI, no pre-existing health conditions, and favorable medical exam results receive lower premiums. Refusal of a medical exam or poor health leads to higher costs.
• Family Medical History
  Hereditary conditions in family history impact life insurance rates.
• Lifestyle
  Engaging in risky activities, criminal history, or having a poor driving record increases costs.
• Occupation
  Dangerous occupations like firefighting or military service may lead to higher rates or coverage denial.
• Foreign Travel
  Regular travel to high-risk nations may elevate life insurance costs.
• Risk Classification
  Underwriters categorize individuals based on risk factors, affecting the premium.

Policy Factors

• Length and Type of Policy
  Longer coverage duration leads to higher costs. Whole life insurance is more expensive than term life insurance products. 
• Coverage Amount
  Higher death benefit requests result in more expensive policies. 
• Policy Options and Riders
  Additional features like convertibility, critical illness riders, and more increase costs. Adding optional life insurance riders enhances the policy but comes at a higher price.

Because there are so many factors that affect policy premiums, the best way to know how much your whole life will cost is to get your own quote from PolicyAdvisor.com. Use our online quoting tool to get an instant quote in seconds.

Is whole life insurance worth it?

Whether or not you need whole life insurance depends entirely on both your personal choice and circumstances. It can provide a financial safety net while you’re alive by utilizing the cash value as well as provide security for your family after you pass away. 

Key benefits of whole life insurance include:

• Lifelong coverage– Your policy will never expire once premiums are paid
• Cash value growth– Premium payments are reinvested and grow cash value that you can access during your lifetime
• Dividends (participating policies only) – Annual dividend payments can be used to reinvest, withdraw, buy more insurance, or more
• No market volatility– The investment component is managed by the insurance company and it does not fluctuate with the market
• Guaranteed death benefit– Life insurance will pay out when you pass away no matter what
• Death benefit growth– Your death benefit or coverage amount can grow over time with cash value or dividends
• Level premiums– The cost of your policy will remain consistent as long as your policy
• Limited pay options– Your policy can be paid off in a short time frame so you don’t have to worry about it later

The main disadvantages of whole life policies are:

• Premiums can be expensive– Whole life policies can cost more than other types of life insurance, like term
• Not as flexible as term life insurance– You cannot select coverage for just a set period; it can only last forever
• Investment potential may not be as large as with other investments– Growth from a portfolio managed by the life insurance company will be moderate

Whole life insurance can be a great product to meet specific needs, so it can be worth the price. The best way to determine if whole life insurance is best for your financial goals is to speak with an expert advisor.

Get a whole life insurance quote

If you need answers about whole life insurance right away, don’t hesitate to schedule a call with one of our licensed insurance advisors. They can answer any of your questions about whole life insurance, help you identify any gaps or shortfalls in your current coverage, and start you on the path to coverage if you so wish. In the meantime, calculate your life insurance coverage needs or get life insurance quotes online.

Life insurance can cost anywhere from $10-70 per month. There is no one-size-fits-all policy with a standard price. Life insurance is customized to your life and financial goals— the insurance companies take your personal and policy details into account and then determine the price. So, how do you know if you’re getting a good deal?

To get a general idea of how much you can expect to pay for life insurance, read on and find out average life insurance rates based on coverage and age, and learn more about how your policy is priced.

How much is life insurance in Canada?

The average cost of term life insurance in Canada is about $10 per month for $100,000 in coverage for a 10-year-term policy, if you are young and healthy (30-40’s, non-smoker). However, the actual price of life insurance is dependent on the type of policy you get and your personal demographics.

Life insurance rates by age in Canada

Age plays a big factor in the cost of life insurance. Check out the quoted prices for each age group in the tables below.

Life insurance rates by coverage amount

The table below has common life insurance death benefit amounts and how much they cost depending on your age.

To quickly see how much term insurance would cost for you, use our life insurance calculator. You can get a personalized, no-obligation estimate matching your financial security needs in minutes.

What is the cheapest life insurance? 

The cheapest form of coverage is term life insurance. This type of life insurance policy provides coverage for a set amount of time or term.

Because you’re only covered for a short amount of time (10, 20, or 30 years, etc), a life insurance company will charge you less than a policy that lasts your whole life (more on that below).

How much does term life insurance cost?

As mentioned above, term life insurance generally costs about $10 a month for $100,000 in coverage if you are young and healthy. But you may need more or less coverage, and maybe your health circumstances are different.

Check out the table below for general term life insurance rates, based on age and term length.

Term life insurance quotes in Canada*

*Quotes based on $500k in coverage for a non-smoker in regular health. 

How much does whole life insurance cost?

Permanent insurance or whole life insurance policy prices are generally a more expensive type of policy because it provides coverage for your entire life. Additionally, whole life insurance policies have a cash value which your elevated premiums also contribute to, and can be accessed in the form of policy loans or a policy dividend.

Learn more about how permanent insurance policies work and the cost of whole life insurance.

To get a general idea of how much whole life insurance costs, check out these whole life quotes below.

Whole life insurance quotes in Canada*

*Quotes based on $100k in coverage for a non-smoker in regular health. 

How much does life insurance for kids cost?

The price for children’s life insurance is cheaper than if you bought it as an adult—in some cases children’s life insurance costs a little as $3 per month. But it depends on how you buy this coverage for your child.

You can purchase life insurance for a newborn child – or even older children – in two ways.

1. Add a child rider to your insurance policy

This typically adds a few more dollars to your monthly insurance premium and provides a modest death benefit should a dependent child pass away while your policy is still active.

2. Buy a separate whole life policy

Children’s whole insurance is guaranteed to remain in force for the covered child’s entire lifetime (including into adulthood) and can generate dividends during this whole period. Whole life insurance also accrues a cash value, which the child can later withdraw from – like a savings account – or use as collateral for a loan from a financial institution.

Learn more about life insurance for children.

Nobody wants to think about their death, but the hard reality is that with ageing comes questions about those you may leave behind. This goes doubly so for couples. When you have a significant other, you both are invested in finding the best life insurance policy for couples. Finding coverage for the two of you provides peace of mind should anything happen to you both.

What are the benefits of taking one life insurance policy for couples?

Lower policy fees

As discussed above, combined and joint-life insurance policies allow a couple to take coverage under a single policy, which is a less expensive way of seeking life insurance as you pay a single policy fee.

For example: you and your partner recently bought a home and have taken out a joint mortgage to cover the cost. You secure your mortgage by taking a joint-first-to-die policy and avoid paying the two policy fees.

The joint coverage includes a single coverage amount; you both can decide this amount based on the outstanding mortgage and its amortization period. The benefit is paid out upon the death of the first insured person. The survivor can then use the money to pay off the mortgage loan.

A penny saved is a penny earned; why not save the extra policy fee while comfortably getting the protection you need? While the amount may seem nominal month-to-month, it can add up to hundreds, if not thousands of dollars saved over the course of the coverage period.

And, as mentioned earlier, you can determine separate coverage amounts and terms for each insured life with a combined policy. In this case, you can also ensure that coverage continues for the surviving spouse or partner if one passes away.

One contract to manage

Keeping track of paperwork and physical contracts on top of regular financial responsibilities can be a pain. With a single policy for a couple, only one contract is issued. You have the ease of reading, managing, and storing just one policy instead of two.

Conversion to permanent insurance

Typically, joint life insurance policies let the survivor convert their term policy into a permanent policy without medical underwriting upon the death of the other life insured as long as they are within the policy term. While not strictly necessary, it gives the surviving partner the option to cover themselves for their entire life. In the case of a multi-life policy, the conversion option is available on both the coverages within the unified contract.

When is the best time to apply for life insurance as a couple?

The best time to get a life insurance quote is always as soon as possible, as your rates will generally be less expensive in your earlier years. However, this is the easy answer. Couples have many trigger points that ad urgency to their life insurance needs. These can include moving in together, getting married, buying a home, getting a pet, or having children just to name a few.

Where can you get life insurance for couples?

While every couple’s situation and needs may vary, joint and combined policies are an excellent fit for those looking to save on money whilst getting the protection they require for their common needs.

Most of Canada’s best insurance companies offer various options for couples’ life insurance. Speak to our advisor today; they can discuss all the options at your disposal and help you choose the right policy and life insurance company for you and your partner’s needs.

If you’ve been searching for life insurance quotes, you’ll find that there are two types of life insurance: term life insurance and whole life insurance. Perhaps you’ve come across advisors, bloggers, or even TikTokers encouraging you to opt for a term life policy. They brag about its affordability and say that permanent life insurance policies are a bad investment. But with any sort of insurance or investment, using a blanket statement of “good” or “bad” isn’t really fair.

There is no one-size-fits-all solution for insurance. So, let’s dig into three common claims and misconceptions made about whole life insurance to find out if it’s a good investment or not.

Whole life insurance definition

Whole life insurance policies are permanent, meaning you get lifelong coverage. This type of life insurance guarantees your beneficiaries receive a tax-free death benefit regardless of when you pass away. This is in contrast to term life insurance, which only provides coverage for a set amount of time. The terms are usually 10, 20, 25, or 30 years. If you die after that term is up, there is no payout.

Other than the policy coverage period, some permanent policies offer living benefits, investment vehicles, and savings accounts. Because the payout is guaranteed with permanent life insurance, the coverage can be used for funeral expenses, end-of-life medical bills, and other final costs.

Whole life insurance is a bad investment

Those in favour of term life insurance will argue that as an investment whole life insurance is “bad”. Often, they’ll say it’s better to buy a cheaper term life policy, and use your excess funds to invest in traditional stocks as opposed to whole life investment portfolios. It’s true that you may be able to make better returns this way — but the keyword here is “may.”

If someone spent time learning the tools it takes to become a savvy trader, they could make millions. But, the reality is that most of us don’t have the time or money needed to get rich off of the stock market.

Whole life insurance can actually be a good investment for two main reasons.

First, your beneficiaries are guaranteed to receive a tax-free payout upon your death. This is great if you want to ensure those you leave behind are left with some financial aid or stability.

Second, you can access funds from your policy during your life. When you pay your premiums, that money is used in two ways. Part of the money is used to cover the cost of insurance, meaning it goes toward the final payout. The other part of the money is invested in a portfolio that is managed by the insurance company.

The income made on these investments gives the policy a cash value that is available for you to withdraw from, borrow, or use as loan collateral. Because of this additional benefit, sometimes this type of insurance is called “cash value life insurance.”

With permanent policies, you may also be entitled to dividends from the investments made with your premium payments. You can use this annual return to purchase additional insurance or reduce your monthly premiums.

Whole life insurance is expensive

It’s true that permanent life insurance policies are more expensive than term life insurance. In fact, whole life insurance premiums can be five to 15 times more expensive than term payments. The exact difference in the cost of insurance will vary for individual policies, but that difference can be significant for those looking for a more budget-friendly life insurance policy.

However, this difference in premium cost isn’t without reason. Whole life insurance offers lifelong coverage, cash value, and investment options.  Another thing to note is that this type of permanent policy generally has guaranteed level premiums. This means you will pay the same amount for the duration of the policy (i.e. for your whole life). So, if you apply when you’re younger and healthy, the premiums can be quite reasonable and much more affordable than if you were applying later in life.

With term insurance, your premiums may increase with each term renewal or new application, creating quite the sticker shock later in life.

You have to surrender the policy to benefit from the cash value

As mentioned above, the cash value of your whole life insurance policy is grown from the premium investments made by your insurance provider.

You can access the cash value of your policy in a few ways. One way is to surrender, or cancel, your policy. But, this will leave you without an insurance policy. In this way, the cash value could be considered an emergency fund. When you surrender your policy you will receive the cash surrender value which is your cash value minus certain surrender fees. These are charges you would have agreed upon at the start of your policy, such as a cancellation fee. They can range from the hundreds to the thousands.

However, you may be able to utilize your cash value without cancelling your policy. Some policies allow a partial withdrawal. But, this will ultimately reduce the value of your life insurance death benefit. You can also take a loan out on the cash value. But, if that loan is not repaid during your lifetime, its remaining debt will be deducted from the final payout.

There will be a fee involved with a withdrawal or policy loan. It could be a flat rate cash payment (e.g. a few hundred dollars or more) or it could be a percentage fee based on the cash value of your policy. These policy loans may include interest fees as well.

The tax implications of withdrawing your cash value can be complicated, especially if you have made any capital gains on the policy. It’s best to speak to an accounting professional to before choosing this option.

It’s also important to note: while your beneficiaries are entitled to your death benefit, they are not entitled to the cash value of your policy after you die. At that time, the cash value is absorbed by the insurance company.

However, with participating whole life insurance policies (and some universal life insurance policies), it is possible to use the dividends to buy up your death benefit coverage using the tax-deferred growth of the policy’s investment component. This is known as enhanced life insurance.

Is term life insurance better than whole life insurance?

The insurance policy that works best for you will depend on a few factors such as your budget and your motivation for getting a life insurance policy in the first place. If you want a policy that ensures your children are financially taken care if you die while they are minors, a term policy could be sufficient. If you want to guarantee that your beneficiaries receive a death benefit to cover your funeral costs or the estate taxes that might be put on an inheritance, whole life insurance might be the better choice.

One common claim is that you will pay more for permanent life insurance policies but end up with the same death benefit as a term policy. This is both true and false. 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 within the 10-year term, you will have spent less for that $50,000 payout. However, with a term policy, if you do not die within the 10-year term, there is no benefit at all. Your more expensive premiums with whole life insurance guarantee a payout whether that be 5, 10, or 30 years after purchasing the policy.

The key difference is paying for a policy if you die (term life insurance) versus when you die (whole life insurance). For some, they are willing to take the risk of the term policy if it means less expensive premiums. For others, they want that guaranteed payout of a whole life policy and the knowledge that when they pay their premiums, it was for something after all.

To answer the question of is term life better than whole life, you have to ask which you value more—a better price now or a guaranteed payout later?

Term life insurance is right up your alley if you’re just getting started with #adulting — like getting your finances in order, learning how taxes work, and thinking about whether you should start investing.

Life insurance is a great way to build a better financial future for your family. And term life insurance is the most affordable and easy option for this kind of security.

This article is your handy guide to the basics of life insurance. We explain what it is and how it works. And, we answer your biggest questions, like how much does term life insurance really cost, what happens when the term ends, whether you can get your money back, and more.

Many procrastinate and put off talking about obtaining an individual disability insurance policy, but it’s something one should always keep in mind. If you are reading this, you are likely worried about the insurance policies you currently have in place and whether you’re in the best position possible for coverage. Your ability to earn an income isn’t a guarantee, as one accident could prevent you from paying your mortgage or other expenses.

With that in mind, it’s important to realize that just because you have term life insurance, it doesn’t mean that your life insurance coverage is going to cover everything. This rings especially true if you and your dependents rely on your ability to earn a paycheque. When you’re put in a position that prevents you from earning your regular income due to disability, tough times are likely to ensue.

What is life insurance?

Life insurance is an agreement between you and a life insurance provider, where if you die, they will pay a lump sum, tax-free benefit to someone you choose – also known as your beneficiary. In exchange, you agree to pay your insurance provider a monthly or annual premium: a small amount of money over the length of your policy

This doesn’t cover you if you’re dealing with long-term disability, as the policyholder has to be deceased before the death benefit can be paid (hence the name). With that said, some life insurance companies offer optional riders. These riders can be added to your regular life insurance coverage at the time of application and provide options and coverage for the future, should you find yourself dealing with disability or serious illness.

What is disability insurance?

Individually owned disability insurance is specifically designed to provide income protection to those who have lost income due to an injury or illness. This is different from a life insurance policy, as life insurance policies are focused on helping the estate or beneficiaries after the policyholder is deceased. There are certain disability riders you can add to term or whole life insurance at the time of application to give you more protection should you become disabled. But, they do not offer the breadth and customization of individually owned disability insurance.

The insured must be deceased for a life insurance policy to pay out; disability insurance policies only make payments if the if the insured remains alive, but has lost their income due to a disability.

To find out more about the different kinds of disability coverage, how your occupation relates to the kinds of coverage you can get, short-term disability insurance, long-term disability insurance, Canada Pension Plan (CPP), and income replacement, read our guide to disability insurance.

Does term life insurance cover disabilities?

No, a life insurance policy does not cover disabilities. This is true whether it is a term life insurance policy or a whole life insurance policy. But, as mentioned, there are different ways your life insurance policy can protect you through optional riders.

Total Disability Waiver of Premium Rider

Under this rider, life insurance premiums are waived if the life insured suffers a permanent total disability. Total Disability Waiver of premium covers disabilities due to accidents as also those suffered due to 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, and
• be receiving medical care for the condition that has caused total disability.

Generally, disability waiver riders only pay out after the individual has been totally disabled for at least 4 or 6 consecutive months. The premiums can be waived retroactively, including for the initial 4 or 6-month waiting period. 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.

Mortgage Disability or Credit Disability Insurance Rider

A Mortgage Disability 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 can be retroactive to 31 days in the event of disability from an accident. A proof of the outstanding loan is usually required at the time of the claim.

What should I choose between disability vs life insurance?

Life insurance is designed to provide financial protection against death. It is available to both individuals and businesses. Life insurance companies offer two types of insurance: term life insurance and whole life insurance. Term life insurance offers protection for a limited amount of time and is inexpensive compared to whole life. Disability insurance offers financial protection against injury and thus your ability to earn income. Comparing disability insurance versus life insurance is not quite apples-to-apples, both are strong protection products with very different use cases and shield you or your loved ones from financial hardship.

Keep yourself covered with disability insurance

Disability insurance should be considered by anyone in their prime income earning years. As you make financial decisions based on the assumption that you’ll be receiving a regular paycheque, it’s important to contemplate what might happen if an injury or illness suddenly prevents you from earning your income. The insurance experts at PolicyAdvisor have experience helping Canadians understand their current disability benefits; and – if there are gaps in coverage, they can assist in obtaining additional disability insurances and coverage. Reach out below if you have any questions.