Planning for the future often feels challenging—you want the assurance of safety while exploring growth opportunities. Whole life insurance offers that unique blend of stability and potential for growth, making it the best choice when it comes to life insurance. Among the many providers in Canada, Empire Life has carved a niche for itself with its commitment to innovative solutions and customer-first approach. 

In this Empire Life whole life insurance review, we’ll uncover how their whole life insurance plans balance protection with financial flexibility, helping you secure your loved ones’ futures while growing your wealth.

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

Empire Life’s whole life insurance offers participating and non-participating plans for individuals up to 75 years of age. The minimum face (coverage) amount begins from $10,000 for non-participating plans and $25,000 for participating plans. The PAR plans have dividend options such as paid-up additions, enhanced coverage, and premium reduction. 

Find out the details below:

Key features of whole life insurance from Empire Life

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

Empire Life offers non-participating (Solution 100 and Term to 100) and participating whole life insurance (EstateMax and Optimax Wealth) options, allowing individuals to choose based on their financial goals and preferences. Here’s a closer look at the available options:

1. Non-participating whole life insurance plans

Empire Life offers two non-participating plans: Solution 100 and Term to 100. These policies focus on providing straightforward, lifelong coverage with fixed premiums and guaranteed benefits, without dividend payouts or additional cash growth components. Non-participating options can help with various financial targets such as estate preservation, funeral expenses, inheritance for children and grandchildren, charitable purposes, and more.

Solution 100

• Provides permanent life insurance coverage with fixed premiums that never increase
• Includes a guaranteed cash surrender value starting in the 10th policy year, offering flexibility if you need to cancel the policy
• Ideal for individuals seeking lifelong protection with no surprises or additional complexity

Term to 100

• Offers lifetime coverage with fixed premiums, combining the affordability of term insurance with the permanence of whole life
• Does not include a cash surrender value, keeping the focus on pure protection at a lower cost
• A great option for those wanting simple, cost-effective lifetime coverage

2. Participating whole life insurance plans

Participating life insurance plans provide lifetime coverage and the opportunity to participate in Empire Life’s profits through dividends. Empire Life offers two participating life insurance plans: EstateMax and Optimax Wealth. These plans are well-suited to meet various individual as well as corporate objectives including affordable coverage for children, estate planning, intergenerational wealth transfer, raising money for charitable purposes, tax-advantaged asset growth, and loan opportunities.

EstateMax

• Designed for long-term wealth transfer, estate preservation, and legacy planning
• It provides guaranteed cash value and offers annual dividends, which can be used to purchase paid-up additions, reduce premiums, or be taken as cash
• Ideal for individuals prioritizing financial stability, estate liquidity, and intergenerational wealth planning

Optimax Wealth

• A growth-oriented whole life insurance option aimed at maximizing cash value accumulation
• Offers high early cash values and dividend opportunities, making it suitable for individuals looking for financial flexibility or supplemental income during their lifetime
• Best for those who want a combination of protection and a powerful financial growth tool

What are the key differences between Empire Life’s EstateMax and Optimax Wealth plans?

While Empire Life’s EstateMax focuses on the long-term growth of death benefits, Optimax Wealth focuses on short-term cash value accumulation, which gives the insured individual access to higher cash relatively sooner. 

Optimax Wealth also has an 8-Pay option as an added benefit. Here are the detailed differences between the two participating whole life policies:

Difference between EstateMax and Optimax Wealth plans

How much does Empire Life whole life insurance cost?

The cost of Empire Life’s whole-life insurance is influenced by factors such as the insured’s age, gender, health status, smoking habits, and the type of coverage selected. For participating (PAR) policies, additional factors like dividend scale and investment performance can also affect pricing.

For instance, for a 38-year-old male smoker opting for an EstateMax whole life insurance with $150,000 in coverage and a 10-Pay plan with an annual premium of $8,342, the cash benefits can be as follows:

Cash benefits of an Empire Life EstateMax participating whole life insurance

*Illustration for a 38-year-old male smoker, EstateMax policy with $150,000 in coverage, 10-Pay plan, with an annual premium of $8,342.

How can you pay for Empire Life whole life insurance?

Empire Life offers 8-pay, 10-pay, 20-pay, and Life pay options for its whole life insurance plans, allowing policyholders to choose a structure that best fits their financial goals and budget. Here’s a breakdown of the available payment options:

• 10-pay: With the 10-pay option, you can pay off the entire premium for your policy in 10 years. This option is ideal for individuals who prefer a shorter payment period and want to ensure their coverage is fully paid up quickly
• 20-pay: The 20-pay option allows you to pay your premiums over 20 years. This provides a balance between affordability and shorter commitment compared to lifetime payments
• Life pay: The Life pay option involves paying premiums for the duration of the policyholder’s life. While the annual premiums may be lower compared to 10-pay or 20-pay, it requires a lifelong commitment to payments
• Optimax Wealth 8 pay: Empire Life’s Optimax Wealth plan includes a unique 8-pay option to pay off your policy in just eight years. The 8-pay option is designed for those seeking rapid accumulation of cash value while minimizing the long-term payment burden and is exclusive to the Optimax Wealth plan

What are the whole life insurance coverage types available for Empire Life?

Empire Life offers three coverage types for their life insurance policies – Single Life, Joint First Death, and Joint Last Death.

• Single Life: This coverage is for an individual, providing a death benefit to the beneficiaries upon the policyholder’s passing
• Joint First Death: This coverage insures two individuals, typically spouses or business partners. The policy pays out the death benefit upon the first death, providing financial protection for the surviving individual
• Joint Second Death: This coverage also insures two individuals, but the death benefit is only paid out after both insured individuals have passed away. This type of policy is commonly used for estate planning, as the benefit can help cover estate taxes or provide inheritance to beneficiaries after both policyholders’ deaths

What are the various dividend options on Empire Life’s participating whole life insurance?

Empire Life’s participating whole life insurance policies offer five flexible dividend options: paid-up additions, cash payout, premium reduction, enhanced coverage, and cash accumulation. These options allow policyholders to choose how their dividends are used. Here’s an overview:

1. Paid-up additions (PUAs)

Dividends can be used to purchase additional participating life insurance that is fully paid up, meaning no further premiums are required to keep this extra coverage in force. This option increases both the policy’s death benefit and cash value over time.

2. Enhanced coverage

Dividends are applied first to purchase one-year term life insurance up to the maximum allowable Enhanced coverage amount (calculated as the Enhanced coverage amount minus PUAs). 

Any leftover dividends are then used to buy paid-up participating life insurance. This option includes a Lifetime Guarantee, ensuring that the combined total of one-year term insurance and paid-up additions will never fall below the Enhanced coverage amount, provided all policy conditions are met.

3. Cash accumulation

Dividends are deposited into an account that grows at a competitive interest rate. This option is ideal for those seeking to accumulate funds within the policy while earning favorable returns.

4. Cash payment

Dividends are paid directly to the policyholder as cash. This provides immediate liquidity and is a good choice for individuals who want to use their dividends for other purposes outside the policy.

5. Annual premium reduction

Dividends can also be utilized to offset part or all of the next year’s premium. This can help reduce out-of-pocket costs while keeping the policy active.

How are the dividends calculated and paid by Empire Life?

Empire Life’s participating policies, including the EstateMax and Optimax Wealth plans, provide policyholders with dividends based on the performance of the participating or PAR account. This account reflects various factors such as investment returns, claims experience, and operational expenses.

When the par account performs better than expected—such as achieving higher investment gains or experiencing lower-than-anticipated claims—policyholders become eligible to receive dividends. These surplus earnings are allocated at the discretion of Empire Life’s Board of Directors, ensuring an equitable distribution among eligible policyholders.

Empire Life has maintained a strong dividend scale interest rate, showcasing resilience in the face of turbulent market conditions.

Empire Life whole life dividend scale for 2022-2024

• 2022: 6.00%
• 2023: 6.00%
• 2024: 6.00%

Can I get a loan against my Empire Life whole life insurance policy?

Yes, you can take a policy loan on Empire Life whole life insurance policies, provided the policy has accumulated enough cash value. The minimum loan amount is $250, allowing policyholders to access funds for personal or financial needs while keeping their policy active.

Policy loans are an attractive feature because they offer quick access to cash without the need for external credit checks. The loan amount is borrowed against the policy’s cash value, and interest is charged on the outstanding balance. Any unpaid loan balance, including interest, will be deducted from the policy’s death benefit or cash value if the loan is not repaid.

However, policy loans can be subjected to taxes so it is better to go through your policy documentation before applying for a loan.

What are additional deposit options (ADO) in the Empire life insurance policy?

The Additional Deposit Option (ADO) in Empire Life’s Optimax Wealth participating life insurance policy allows policyholders to make extra contributions, which enhance both the cash value and the life insurance coverage. 

When a deposit is made into the ADO, the funds are used to purchase paid-up additions. These PUAs increase the policy’s total cash value and death benefit, and they also earn dividends, further boosting the policy’s growth over time.

Here are some of the common minimum deposit values decided by Empire Life regardless of an insured individual’s age:

• Monthly: $10
• Annual: $100

Deposits to the ADO are processed quickly, immediately increasing the cash value and coverage provided by the policy. This feature is available for all issue ages and offers flexibility for policyholders to accelerate the growth of their policy’s value.

Who is eligible for the additional deposit options?

The Additional Deposit Options (ADO) rider is eligible for individuals who meet certain conditions including purchasing the paid up additions and enhanced coverage policies or investing in the participating whole life options. Here are a few criteria that must be followed:

• The policyholder must select either the Paid-up Additions or Enhanced Coverage dividend option
• The ADO rider is available for the EstateMax and Optimax Wealth products only. Even the 8-Pay version of Optimax Wealth does not qualify for the ADO rider
• The ADO rider cannot be added at the time of issue due to limited tax-exempt room. However, starting in Year 9, it becomes eligible if evidence of insurability is submitted

The ADO rider is subject to annual and lifetime maximums, ensuring compliance with policy constraints

What is the EstateMax Side Account feature?

The EstateMax Side Account feature is a flexible prepayment option offered by Empire Life that allows policyholders to deposit additional funds beyond their required premiums. These funds earn interest and can be used for future premium payments or other policy-related expenses.

Some of the key benefits of the Side Account include:

• Interest growth: Funds in the Side Account earn a competitive interest rate, enhancing its value over time
• Flexible access: Policyholders can access these funds if needed, providing liquidity while maintaining the life insurance policy
• Prepayment option: It allows for early payment of future premiums, ensuring the policy remains active even if regular payments are missed

This feature is particularly useful for those who wish to manage their policy efficiently while maximizing financial flexibility.

Why should I get Empire Life whole life insurance for my grandchildren?

Empire Life Kid-Start whole life insurance is an ideal choice for grandparents who want to provide their grandchildren with a head start in life. It allows them to offer a lasting gift that helps ensure their grandchildren’s financial security and sets them on a path toward future stability. 

With this policy, grandparents can play a key role in building a strong financial foundation, allowing their grandchildren to benefit from the long-term growth and security of a whole life insurance policy.

Some of the benefits of buying whole life insurance for your grandchildren include:

• Tax-deferred transfer: No taxes are payable when transferring the policy from grandparent to grandchild
• Low-cost permanent coverage: Purchasing when the grandchild is young provides affordable lifetime coverage
• Access to funds: The grandchild can use the policy’s accumulated funds for education, starting a business, or buying a home
• Limited payment option: The policy can be fully paid in 8, 10, or 20 years, offering permanent coverage without further premiums
• Dividend-driven growth: Dividends purchase additional insurance, increasing coverage without requiring medical evidence
• Guaranteed insurability benefit: The grandchild can purchase more coverage at key life events without having to go through additional medical examination

Are there any administrative fees associated with Empire Life whole life insurance policy?

Yes, Empire Life whole life insurance policies have an annual administrative fee of $50. This fee helps cover the costs associated with managing and servicing the policy. It ensures the smooth operation of the policy, including maintaining the policy records, processing dividends, and providing customer support.

What are the additional benefits and riders offered by Empire Life whole life insurance policy?

Empire Life offers several additional benefits and riders that can be added to their non-participating and participating whole life insurance plans, including options from the Solution Series, as well as coverage for critical illness and disability. The available riders are:

Here are the rider options for participating and non-participating whole life insurance:

• Solution Series: Solution ART, Solution 10, Solution 15, Solution 20, Solution 25, Solution 30, and Solution 100 life insurance options offering term, permanent, and participating options to meet diverse needs
• Empire Life CI Protect & CI Protect Plus: Comprehensive critical illness insurance with optional enhanced coverage and return of premium features
• Empire Life Disability Credit Protect: Disability insurance designed to protect loan and credit payments during periods of income loss
• Term to 100: Affordable permanent life insurance with guaranteed premiums and lifetime coverage

The additional benefits for Empire Life whole life insurance include:

• Additional Deposit Option (ADO): Allows policyholders to make extra deposits, enhancing cash value growth within the policy’s limits. This benefit option is only available with the EstateMax and Optimax Wealth plans
• Waiver of Premium: Ensures premiums are waived if the policyholder becomes totally disabled, maintaining coverage without additional cost
• Payor Waiver of Premium: Waives premiums if the payor (not the insured) dies or becomes disabled, securing the insured’s coverage
• Guaranteed Insurability: Provides the option to increase coverage at specified intervals without medical evidence, ensuring adaptability to life changes
• Accidental Death and Dismemberment (AD&D): Offers additional coverage for accidental death and dismemberment, enhancing financial protection against unforeseen events
• Children’s Life Rider: Adds life insurance coverage for the policyholder’s children under a single rider for affordable family protection
• Children’s Critical Illness Rider: Provides critical illness coverage for children, offering financial support for covered conditions during treatment or recovery

What are the pros and cons of Empire Life whole life insurance policy?

Empire Life whole life insurance has several pros such as survivor benefits, temporary insurance after the first death for a joint policy, pre-payment options, and a stable dividend scale. However, there are some cons such as the 8-pay plan only available for Optimax Wealth, significant administrative fee, and an age cap of 75 years.

Pros and cons of Empire Life whole life insurance

How to find the best Empire Life whole life insurance quotes in Canada?

Finding the best whole life insurance quotes in Canada can be challenging, especially with so many options to compare. While you could research and compare policies manually, this approach can be overwhelming and time-consuming. That’s where a platform like PolicyAdvisor makes a difference.

PolicyAdvisor simplifies the process by offering competitive pricing and access to multiple insurance options in one place. What truly sets it apart is the lifetime support provided by its team of expert advisors. 

Once you’ve chosen a policy, their advisors remain available to assist with any questions or adjustments, ensuring you’re supported long after your policy is in place. This hassle-free approach ensures you get the best coverage tailored to your needs, with peace of mind for the future.

Securing your financial future and protecting your loved ones doesn’t have to be complicated. Imagine a life insurance plan that provides peace of mind with guaranteed coverage and grows in value over time, serving as a financial asset you can count on. That’s exactly where Equitable whole life insurance comes in!

Equitable Life has positioned itself as Canada’s leading whole life insurance provider, blending protection with growth and making it an attractive choice for individuals and families alike. In this review, we’ll explore Equitable’s whole life insurance – its features, benefits, and why it might be the right fit for your financial goals.

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

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

Key features of whole life insurance from Equitable Life

What is Equimax by Equitable Canada?

Equimax by Equitable Life of Canada is a participating whole life insurance product that combines lifelong protection with cash value growth. Equimax provides policyholders with guaranteed coverage, stable premiums, and the potential for financial growth through participating dividends. 

It is offered in two variations of plans for people with varied requirements: Equimax Estate Builder and Equimax Wealth Accumulator.

How does Equimax’s participating whole life insurance work?

Participating whole life insurance policies by Equitable provide lifelong coverage for individuals, along with guaranteed cash value, fixed premiums, and flexible rider options.

• Lifelong protection: Provides permanent coverage for the insured as long as premiums are paid, ensuring peace of mind for the policyholder and their beneficiaries
• Guaranteed cash value: Builds cash value over time, which can be accessed through policy loans or withdrawals to meet financial needs
• Fixed premiums: Ensures consistent payments throughout the life of the policy, making long-term budgeting easier
• Flexibility with riders: Allows policyholders to customize their coverage with optional riders such as critical illness coverage or accidental death benefits
• Tax-advantaged growth: Cash value accumulates on a tax-deferred basis, and the death benefit is typically tax-free to beneficiaries

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

Equitable Life offers two primary whole life insurance plans, Equimax Estate Builder whole life plan and Equimax Wealth Accumulator plan, each designed to meet different financial and protection goals. While Equimax Estate Builder focuses on building long-term wealth, Equimax Wealth Accumulator prioritizes accumulating significant cash over a shorter time frame. 

Here’s an overview of these plans and a comparison table to help you make an informed decision.

Key differences between Equimax Estate Builder and Equimax Wealth Accumulator

How much does Equitable Life whole life insurance cost?

The cost of Equitable whole life insurance is influenced by various factors, including the individual’s age, gender, health status, coverage amount, and the specific plan selected. 

To illustrate, let’s explore how the death benefit and cash value might differ for a 35-year-old, non-smoker, male opting for a 20-Pay Equimax Estate Builder whole life plan or Equimax Wealth Accumulator policy, paying $10,000 as an annual premium.

Cash benefits of an Equimax Estate Builder

*Projected cash value for a 35-year-old, non-smoker, male opting for a 20-Pay with a $10,000 annual premium

Cash benefits of Equimax Wealth Accumulator

*Projected cash value for a 35-year-old, non-smoker, male opting for a 20-Pay with a $10,000 annual premium

How can you pay for Equitable whole life insurance?

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

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

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

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

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

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

Let us take a look at the projected cash value and death benefit for this policy:

Cash benefits of Equimax plans for children

*Projected cash value and death benefit for a 5-year-old female with a 20-pay policy and $1,200 annual premium

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

Source: Equitable Life

Does Equimax help with tax payouts during death?

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

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

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

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

How are whole life insurance dividends determined by Equitable?

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

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

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

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

Equitable Life dividend scale over 30 years

Source: Equitable dividend scale interest rate, 2024

Which Equitable whole life plan type is right for you?

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

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

Source: Equitable Life

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

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

• Paid in cash: Dividends are paid directly to you annually in cash but may have tax consequences, requiring reporting as income
• Premium reduction: Dividends are applied to reduce your current policy premium, with potential tax implications
• Paid-up additions: Dividends are used to purchase additional participating paid-up insurance, which is payable alongside the death benefit
• On deposit: Dividends are deposited with Equitable Life and accumulate with compound interest, with interest reported as income
• Enhanced Protection: Dividends are used to purchase one-year term insurance for single life policies, with any excess used to buy paid-up additions

What is the Living Benefit offered by Equimax whole life insurance?

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

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

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

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

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

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

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

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

Who should invest in Equitable Life whole life insurance policy? 

Equimax participating whole life insurance by Equitable Life offers a versatile solution for individuals with diverse financial goals. Whether you’re planning to leave a legacy, protect your wealth, manage debts, or secure a financial foundation for your children or grandchildren, this policy provides lifelong coverage and the opportunity to grow cash value. Its flexibility and tax-advantaged features make it an excellent choice for long-term planning.

Equimax can be a great option for:

– Estate planners aiming to create a financial legacy for loved ones or charities 

– Wealth protectors looking to preserve and pass on their hard-earned assets  

– Individuals ensuring their taxes and debts are covered after their passing  

– Investors wanting to grow wealth with tax-deferred savings and accessible funds

– Parents or grandparents securing protection and future wealth for children or grandchildren

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

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

Pros and cons of Equitable whole life insurance

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

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

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

Sun Life is a leading provider in the Canadian insurance market, known for its comprehensive range of financial products. In this review, we’ll take a closer look at its whole life insurance offerings, evaluating their key features, benefits, and pros and cons.

Whether you’re looking for lifetime coverage or a strategic investment option, this review will help you decide if Sun Life’s whole life insurance policies align with your budget and financial goals.

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

Sun Life’s whole life policies offer lifetime coverage with a cash value component that accumulates over time. They also include flexible payment options, allowing you to choose between paying premiums for life (Life Pay) or a limited period of 10, 15, or 20 years (10 Pay, 15 Pay, and 20 Pay).

They also offer 3 coverage options:

• Single Life: Covers one person and pays a tax-free death benefit upon their passing
• Joint first-to-die: Covers two people and pays a tax-free death benefit upon the death of the first insured person. It also includes a survivor benefit that allows the surviving person to apply for a new policy within 90 days without medical underwriting
• Joint last-to-die: Covers two people and pays a death benefit upon the death of the last insured person. One variant of this policy considers premiums fully paid after the death of the first insured person. The other requires premiums to be paid until the death of the last insured person.

Types of whole life insurance offered by Sun Life

Sun Life offers three participating, one non-participating, and a guaranteed whole life insurance plan. 

Participating whole life plans by Sun Life:

• Sun Par Protector II Life Insurance
• Sun Par Accumulator II Life Insurance
• Sun Par Accelerator life insurance

Non-participating whole life insurance by Sun Life:

• SunSpectrum Permanent Life II Insurance

Guaranteed whole life insurance by Sun Life:

• Sun Life Go Guaranteed life insurance

Here’s a complete breakdown of their core differences and key features:

Sun Life’s participating whole life plans

Sun Life’s participating whole life plans include all the standard benefits of whole life insurance: lifetime coverage, fixed premiums, cash value accumulation, and a guaranteed death benefit. Additionally, they pay annual dividends, based on the profits generated by the “par” account, which is funded by participating policy premiums.

Currently, Sun Life offers three participating whole life plans:

• Sun Par Protector II: This policy offers affordable lifetime coverage starting at $50,000 for adults and $25,000 for children aged 0–17. It also includes a cash value component, which starts accumulating after 5 years, and various dividend options, like premium reductions, cash withdrawal, interest accumulation on deposits, and paid-up additions
• Sun Par Accumulator: This policy provides lifetime coverage with early access to cash value starting after the first year. It offers the same dividend options as the Sun Par Protector II plan
• Sun Par Accelerator: Premiums for the Sun Par Accelerator plan are payable for only 8 years, after which it becomes fully paid up. Like the Accumulator plan, it offers early access to cash value starting after the first year. However, unlike other participating plans, its dividend options are only issued as paid-up additions

Key features of Sun Life’s Participating Whole Life Policies

How are dividends distributed in a Sun Life participating policy?

Dividends in Sun Life participating policies, such as Sun Par Protector and Sun Par Accumulator, are distributed based on the performance of the participating, or “par” account. This account tracks investments, operational expenses, policy claims, and other factors. 

Policyholders become eligible for dividends when the par account outperforms expectations, such as receiving higher investment returns or lower mortality claims. Dividends are then allocated by policy type and purchase date to ensure a fair distribution of earnings.

While dividends are not guaranteed and can vary from year to year, Sun Life has an excellent track record of maintaining its dividend scale. 

Sun Life whole life dividend scale for 2022-2024

• 2022: 6.00%
• 2023: 6.00%
• 2024: 6.25%

How are the premiums for my Sun Par Protector and Sun Accumulator invested?

Premiums from Sun Par Protector and Par Accumulator are invested in a diversified portfolio managed under the par account. The portion of premiums not required to pay for current benefits and operational expenses is allocated to various asset classes, including: 

• Government and corporate bonds
• Equities
• Real estate
• Commercial mortgages
• Private fixed income

Are par account investments affected by market conditions? 

Yes, par account investments are affected by market conditions. While Sun Life employs a long-term investment strategy and diversifies across various asset classes to stabilize returns, fluctuations in interest rates and stock prices can still affect the account’s earnings.

Sun Life’s non-participating and guaranteed whole life plans

These policies offer lifelong protection but differ significantly in benefits. The non-participating plan accumulates a cash value over time, while the guaranteed plan focuses solely on lifelong protection without building additional funds. Neither pays annual dividends.

Here’s an overview of their key features:

• SunSpectrum Permanent Life II (non-participating plan): This whole life policy provides a guaranteed death benefit and cash value, which begins accumulating after 2 years. It also offers coverage up to $25,000,000
• Sun Life Go Guaranteed Life Insurance: Designed for individuals with pre-existing health conditions, this plan offers lifetime coverage of up to $25,000 without requiring medical information. Unlike other whole life insurance from Sun Life, it does not offer coverage options like single life, joint-first-to-die, or joint-last-to-die

Key features of SunSpectrum and Go Guaranteed whole life insurance

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

Sun Life’s whole life policies offer several benefits, including lifelong coverage, fixed premiums, cash value growth, dividend options, and additional riders for enhanced coverage. However, they also have some drawbacks, like higher costs, delayed cash value growth, and limited coverage on certain plans. Let’s take a closer look at the pros and cons of Sun Life Whole Life insurance below:

How to apply for Sun Life’s whole life insurance?

You can get an instant Sun Life whole life insurance quote from PolicyAdvisor, where you can compare different plans and see how they stack up against other offerings from Canada’s top insurance providers.

For personalized guidance, PolicyAdvisor offers licensed advisors who can provide expert advice tailored to your requirements. We also offer lifetime after-sales support to assist you with any questions or adjustments in the future.

Whole life insurance typically costs between $45-$100 per month. However, 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 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. 

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.

How much is a $25,000 whole life insurance policy?

The cost of a $25,000 whole life insurance policy typically ranges from $50 to $150 per month. The exact premium depends on several factors, including the insured’s age, health condition, and gender, as well as the underwriting criteria of the insurance provider. These factors collectively determine the overall cost of coverage.

How much is a $50,000 whole life insurance policy?

The cost of a $50,000 whole life insurance policy varies based on age, smoking status, and gender. For example, a 20-year-old male, non-smokers pay around $26.82 per month, while smokers pay $29.61. At age 30, female non-smokers pay approximately $31.46, compared to $36.41 for smokers. 

The premium differences reflect the increased health risks associated with smoking and aging, highlighting the importance of maintaining a healthy lifestyle for affordable coverage.

How much is a $100,000 whole life insurance policy?

The monthly premium for a $100,000 whole life insurance policy typically ranges between $150 and $300. However, the exact cost depends on several factors, including the insured’s age, overall health, and lifestyle habits such as smoking. Additionally, the specific terms and underwriting policies of the insurance company can influence the premium amount.

How much is $500,000 life insurance?

For a $500,000 participating whole life insurance policy, premiums vary by age, gender, and smoking status. For a 30-year-old male, non-smokers pay approximately $232.15 per month, while smokers pay $280.93. At age 35, non-smokers pay around $311.14, compared to $358.93 for smokers.

For females, the premiums are slightly lower. A 30-year-old non-smoker pays about $193.27, while smokers pay $225.35. At age 35, non-smokers pay approximately $253.43, while smokers face premiums of $284.31. 

What is the cash value of a $10,000 whole life insurance policy?

The cash value of a $10,000 whole life policy depends on factors like the policy age, premiums, and dividends. In the illustration below, the table shows how the cash value of a $10,000 whole life insurance policy increases over time. Initially, the cash value is minimal, but it grows as premiums are paid and dividends accumulate. 

By age 40, the cash value reaches $40,412, with dividends boosting it further. At age 60, the cash value rises to $301,902, and by age 70, it exceeds $439,000.

By age 80, the cash value reaches $555,467, with dividends pushing the total value above $2 million, illustrating the long-term growth potential of the policy.

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 age, gender, smoking status, lifestyle, occupation, policy type, etc.

• 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
• 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

How much do you get when you cash out a whole life insurance policy?

The amount you get when cashing out a whole life insurance policy depends on the policy’s accumulated cash value, which grows over time. Factors such as how long you’ve maintained the policy, premium payments, and any loans or withdrawals can impact your cash-out value. 

• Policy duration: The longer you’ve held the policy, the more time the cash value has had to grow through premium payments and interest accumulation
• Premium contributions: Higher or consistent premium payments can increase cash value over time
• Loans or withdrawals: Any outstanding loans or prior withdrawals reduce the death benefit
• Surrender charges: Cashing out early may result in surrender fees, which can significantly lower the payout amount
• Policy type and features: Some policies may offer dividends or other bonuses that add to the cash value

Before cashing out, consult with an insurance professional (like our experts at PolicyAdvisor) to understand the full implications and make sure it aligns with your financial goals.

What happens when you pay off whole life insurance?

Once you pay off a whole life policy, it becomes fully paid-up, meaning no further premiums are required. This type of policy is known as limited pay whole life insurance.

The policy remains active for life, and the death benefit stays intact. The cash value will continue to grow, and you can still access it through loans or withdrawals.

This is especially helpful if you are buying a whole life policy for your children. While you pay the premiums till your child is 20-years-old, they remain protected for life and have access to cash value that they can use for any future financial obligations such as education costs.

Here’s what a paid-up policy would look like for a 5-year-old child:

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

Get a whole life insurance quote in Canada

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.

As one of the almost 2.5 million Canadians with diabetes (source: Statistics Canada), you may have hit some stumbling blocks or even brick walls on your search for insurance of any kind. Getting life insurance when you are diabetic can be a little less straightforward than for those without it. But, it is possible to obtain life insurance for diabetics, and it may be less expensive than you assumed.

Why does diabetes affect insurance rates?

Diabetes is a disease that affects how your body uses and produces insulin, a hormone produced by your pancreas.

As you no doubt know there are multiple types of diabetes:

Type-1 diabetes

It is also known as insulin-dependent diabetes, is an auto-immune disorder. For Type-1 diabetics, their pancreas no longer produce insulin, a hormone that helps your body convert sugar to the energy you need. You need to administer synthetic insulin to cover for the food you eat

Type-2 diabetes

People with type-2 diabetes produce insulin, but their body does not use or recognize it correctly. They can deal with the condition through oral medication or diet. Type-2 diabetes is the most common form of diabetes in Canada, with approximately 90% of diabetics living with Type-2

Gestational diabetes

It is a temporary form of diabetes associated with pregnancy. The body cannot produce an adequate amount of insulin, leading to an increase in the amount of blood sugar. In most cases, gestational diabetes goes away post-pregnancy

So why would diabetes affect life insurance policy premiums? Well, the stress of constantly fluctuating blood sugar levels puts stress on your internal organs like your heart and kidneys. The added stress means they are prone to failure in your older years, thus approving your application takes on added risk factors and adds to the cost of life insurance.

More specifically, Type-1 insulin-dependent diabetes is usually diagnosed in childhood and puts a lifetime of stress on one’s body. This is why insurance rates for Type-1 diabetics are higher.

Type 2 diabetes is more prevalent in individuals after the age of 40, and its effects can be quickly remedied by diet; organ stress is not as great of a factor in medical underwriting.

Gestational diabetes does not usually affect insurance rates, as most expecting mothers opt to do any medical underwriting before or after their pregnancy.

Can diabetics get life insurance?

Yes, diabetics in Canada can get life insurance in Canada. Diabetics who are in good health, with consistent medication levels, and who keep their blood sugar levels in control can qualify for standard, medically underwritten life insurance coverage.

In medically underwritten life insurance, the life insurance company will arrange for a blood test and likely request for a physician’s report to evaluate and screen for a pre-existing condition and grant approval for a life insurance policy. This process may provide more a higher death benefit for a lower premium, than no medical life insurance.

Much like anyone with a pre-existing health condition, no medical life insurance is another choice for diabetics. No medical life insurance is a policy that is issued without the insured having to undergo a medical exam. It usually has the added advantage of a simpler and faster issuance process that doesn’t require details for every medical condition one may have.

The two most common types of no medical life insurance are simplified issue and guaranteed issue. Read more about simplified vs guaranteed. 

What are the types of life insurance available to diabetics?

In Canada, diabetics have several life insurance options, though the specifics can vary based on individual health conditions and insurance providers. Here are the primary types of life insurance policies accessible to diabetics:

Term life insurance

Term life provides coverage for a specific period (e.g., 10, 20, 30 years) and is generally more affordable than permanent life insurance.

Term life insurance may have higher premiums for diabetics depending on how well the condition is managed and overall health factors

Permanent life insurance

A permanent life insurance policy includes whole life and universal life insurance. It offers lifetime coverage with an added savings or investment component and has higher premiums than term life insurance. This may also require more stringent medical exams for diabetics

Simplified issue life insurance

Simplified issue life insurance requires no medical exam but only a health questionnaire, designed for individuals with health issues who might have difficulty qualifying for traditional life insurance. This policy typically has higher premiums and lower coverage amounts and is often easier for diabetics with well-managed conditions to obtain

Guaranteed issue life insurance

A guaranteed issue policy involves no medical exams or health questions and guarantees acceptance up to a certain age (e.g., 75 years). It has higher premiums and lower coverage amounts and often includes a waiting period (e.g., 2 years) before the full death benefit is paid out.

This is suitable for diabetics with significant health issues or those who have been declined other types of insurance

Best life insurance for type 1 diabetics

The availability of a life insurance policy for people with type 1 diabetes depends on the age of the applicant, duration of the disease, and degree of control. Traditional life insurance companies that require lab results will also seek a doctor’s statement to establish the stability of the treatment and the condition.

In most cases, a life insurance company may apply a rating (higher premium) when approving life insurance for those with type 1 diabetes. No-medical, questionnaire-based options make for an easier and faster process in such cases, albeit they offer life insurance for diabetics at higher premiums.

For no-medical questionnaires, the focus is primarily on the age of the insured, the stability of the medication, and the risk of complications. If you are older, with no change in your insulin dependence in the last 12 months and no associated complications, you can easily get life insurance with no medical exam or obligation to provide medical records.

Best life insurance for type 2 diabetics

People with type 2 diabetes can get life insurance in Canada with the possibility of standard, competitive pricing. Life insurance companies are usually more accommodating when offering life insurance to people with diabetes who do not require insulin injections.

Traditional insurance companies may even consider granting standard regular-health pricing (even more affordable life insurance) to someone who is:

• Above the age of 50
• Controlling their blood glucose levels and providing lab results with A1C levels
• Undergoes regular medical check-ups with a physician or specialist
• Is treated with oral medications that have not been increased in the past 12 months
• Follows a diet
• And has no diabetes diagnosis associated complications

There are also several options with no medical exam for people with diabetes who may not be able to get standard pricing or those that may want easier and faster access to life insurance.

Most no-medical life insurance questionnaires contain a few questions that seek to assess how long you have had type 2 diabetes, whether your medications have changed recently, and whether you have any complications associated with this type of diabetes. Based on simple binary questionnaires, the eligibility of life insurance for diabetics can be established fairly quickly.

Best life insurance companies for diabetics in Canada

There are several companies in Canada that cater to individuals looking for life insurance in Canada. Here are some of the best ones to look out for:

• Canada Life
• Sun Life Assurance Company of Canada
• Manulife
• Desjardins Financial Services
• Industrial Alliance Life Insurance
• Beneva Inc.
• Royal Bank of Canada (RBC)

What factors affect insurance rates for diabetes?

Several factors affect insurance rates for diabetics, as insurers evaluate risk based on how well the condition is managed and its impact on overall health. Here’s a collated list of factors that influence insurance rates:

Age

• Your age when you apply for a policy: Younger applicants generally secure better rates due to lower perceived risk
• Your age when you were diagnosed with diabetes: Earlier diagnosis can lead to higher rates due to longer potential exposure to complications

Type of diabetes

• Type 2 diabetes: More common and generally considered less risky compared to Type 1 diabetes but still affects rates
• Type 1 diabetes: Often associated with higher risk due to its complexity and potential for complications
• Gestational diabetes: Typically resolves after pregnancy; however, if it leads to Type 2 diabetes later, it can affect rates

Severity of your diabetes or blood sugar control

• Well-controlled diabetes with stable blood sugar levels is viewed more favorably by insurers
• Poor control with fluctuating blood sugar levels or complications can increase risk and lead to higher premiums

Other medical conditions

• Additional health issues can increase risk and affect premiums
• A family history of diabetes or related health conditions can influence rates
• Excessive alcohol consumption can impact overall health and increase insurance premiums

Tips to lower life insurance rates for diabetics

Lowering life insurance rates for diabetics will require you to take proactive steps to manage your condition effectively and demonstrate overall good health to insurers. Here are some tips to help reduce premiums:

• Maintain good control of blood sugar levels through regular monitoring and adherence to treatment plans, which shows effective management of diabetes to insurers
• Adopt a healthy lifestyle with a balanced diet and regular exercise, which can help improve overall health and potentially reduce the risk of diabetes-related complications
• Avoid smoking and limit alcohol consumption, as these factors can negatively impact health and lead to higher insurance premiums
• Regularly visit healthcare providers for check-ups and management of diabetes, showing insurers that the condition is being actively monitored and managed
• Keep detailed records of your diabetes management, including medications, lifestyle changes, and doctor visits, to provide evidence of effective control to insurers
• Compare quotes from multiple insurance providers, as different companies may have varying criteria and rates for diabetics
• Work with an insurance expert who specializes in high-risk cases so you can find a policy that suits your specific health conditions

How to get life insurance with diabetes?

Getting life insurance with diabetes can be more challenging, but with the right approach, you can find suitable coverage. Here’s a step-by-step guide to help you:

Gather your medical information

• Collect recent medical records, including blood sugar levels, HbA1c test results, and any other relevant health information
• Prepare a list of all medications you are taking
• Note any lifestyle changes you’ve made, such as diet and exercise routines

Manage your diabetes effectively

• Regularly monitor and maintain your blood sugar levels within the target range
• Follow a balanced diet, exercise regularly, avoid smoking, and limit alcohol consumption
• Visit your healthcare provider regularly for diabetes management and check-ups

Provide accurate information

• Submit accurate and detailed records of your diabetes management, including medications, lifestyle changes, and doctor visits, to show that you are managing your condition well

Apply for insurance

• Complete the application process, which may include a medical exam for some types of insurance
• If a medical exam is required, prepare by fasting if instructed, getting a good night’s sleep, and avoiding strenuous activities beforehand

Review and choose the best policy

• Policy review: Carefully review the terms, conditions, and exclusions of your policy
• Cost vs. coverage: Balance the cost of premiums with the coverage provided to ensure it meets your needs and budget
• Final decision: Choose the policy that offers the best balance of coverage and affordability

Why does timing matter with life insurance for diabetics?

Timing matters when applying for life insurance as a diabetic because your current health status and diabetes management can significantly influence the premiums and coverage options you receive. Here are some reasons why timing is crucial:

• Stable condition: Applying when your diabetes is well-controlled and stable can result in more favorable premiums.  
• Recent health improvements: If you’ve recently made positive changes to your lifestyle, such as losing weight, quitting smoking, or improving your diet and exercise habits, waiting until these changes are reflected in your medical records can lead to better rates
• Medical advancements: If new treatments or medications for diabetes have been effective for you, showing a period of stability and improved health can work in your favor with insurers
• Age considerations: Life insurance generally becomes more expensive as you age, so, applying when you are younger and your diabetes is under control can help lock in lower rates.
• Health monitoring: Regular check-ups and maintaining detailed health records over time can demonstrate a consistent pattern of good diabetes management, which can be appealing to insurers
• Temporary health issues: If you have temporary health issues unrelated to diabetes, waiting until you recover from these conditions can help you avoid higher premiums that might result from a recent illness or medical event
• Gestational diabetes resolution: If you developed gestational diabetes during pregnancy and it has since resolved, waiting until you have a track record of normal blood sugar levels and stable health can improve your chances of obtaining better life insurance rates

Life insurance and diabetes: What can help or hurt your case

When applying for life insurance with diabetes, several factors can influence your application positively or negatively. Understanding these factors can help you navigate the process and potentially improve your chances of securing favorable rates.

What are some questions insurers may ask about your diabetes?

When applying for a policy that requires a health questionnaire or physical exam, insurers will ask about your general health, lifestyle, and family medical history. They will also have specific questions regarding your diabetes, such as:

• What type of diabetes do you have? Understanding whether you have Type 1, Type 2, or gestational diabetes helps insurers assess risk levels
• When were you diagnosed? The age of diagnosis can impact perceived risk, with earlier diagnoses potentially affecting rates
• Do you monitor your glucose levels regularly? Regular monitoring indicates effective management of your condition
• Are you taking insulin, oral medication, or both? If so, provide details on the number of insulin units per day, types of medications, and dosages
• What is your current diet and exercise routine? Your lifestyle choices can affect your overall health and diabetes management
• What is your current A1C level? This provides insight into your long-term blood sugar control
• What has been your average A1C reading over the past year? Consistency in A1C levels is important for assessing diabetes control
• Have you had any other tests related to your diabetes? This includes tests for complications or related conditions
• Who is your primary care doctor and when was your last visit? You may need to provide contact details for your healthcare team, including endocrinologists
• Do you have any diabetes-related complications? This could include high blood pressure, vision impairment, blackout spells, or kidney issues
• Have you been diagnosed with any other serious medical conditions? Conditions like coronary artery disease or kidney disease can affect insurance rates
• Have you ever experienced a diabetic or insulin coma? Such events may impact your risk profile and premiums
• Are you currently on dialysis? Dialysis indicates severe complications and can significantly affect insurance costs
• Have you had any recent hospitalizations or emergency room visits related to your diabetes? Recent health events can influence risk assessment
• Have you made any recent changes to your diabetes medication or treatment plan? Recent changes can affect your current health status and risk profile
• What is your current weight, and have you experienced any significant changes recently? Weight fluctuations can impact diabetes management and overall health
• Have you been advised by your doctor to make any lifestyle changes or undergo additional treatments? Shows ongoing medical advice and treatment adjustments

Frequently asked questions

What is the best type of life insurance for diabetics in Canada? 

The best type of life insurance for diabetics often depends on individual health conditions and needs. Generally, term life insurance may be more affordable, while permanent life insurance offers lifetime coverage and an investment component. Simplified issue and guaranteed issue life insurance policies might also be options for those who prefer not to undergo a medical exam.

Can diabetics get approved for life insurance in Canada? 

Yes, diabetics can get approved for life insurance in Canada. Approval and rates depend on factors such as the type of diabetes, control of blood sugar levels, and overall health. Insurance companies assess these factors to determine eligibility and premiums.

How much does life insurance cost for diabetics in Canada? 

The cost of life insurance for diabetics in Canada varies based on several factors, including the type of diabetes, age, overall health, and the level of coverage required. Premiums may be higher than for individuals without diabetes due to the increased risk associated with the condition.

When is the best time for a diabetic to apply for life insurance in Canada? 

The best time for a diabetic to apply for life insurance is when their diabetes is well-controlled and stable. Applying when you are younger and healthier can also help secure better rates. It is advantageous to apply after recent improvements in diabetes management or overall health.

Do all life insurance companies in Canada offer coverage for diabetics? 

Not all life insurance companies in Canada offer coverage for diabetics. Some insurers specialize in high-risk cases and may provide coverage options tailored to diabetics. It is important to compare policies and work with a broker who can help find insurers willing to offer coverage.

Can diabetics get a life insurance policy if they have been turned down before?

Yes, diabetics can get life insurance if they have been turned down before or denied coverage. Read more about your life insurance options when your application has been declined.

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.

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?