Whole life insurance is a powerful financial tool that combines lifelong coverage with a cash value component that can be used to achieve various financial goals. By leveraging the cash value policyholders can supplement their retirement income, plan their estates, and even grow their business. In this blog, we’ll answer a question many Canadians ask: how to use whole life insurance to create wealth.

Whether you’re looking to enhance your financial portfolio or secure your family’s future, a whole life policy can help you achieve both these goals. 

Why do you need life insurance?

Life insurance is essential for ensuring your loved ones are financially secure in the event of your unexpected passing. A life insurance policy can help cover expenses such as:

• Funeral costs
• Outstanding debts
• Mortgages
• Daily living expenses
• Children’s education
• Retirement planning 

A life insurance policy is a versatile financial tool that brings financial protection and peace of mind to you and your loved ones. 

How does whole life insurance work as an investment?

A whole life policy can help build wealth because of the two key components it offers: cash value for both participating and non-participating policies, and dividends for participating policies only. Policyholders can leverage either of these two components to create a source of income for various financial goals, supplement retirement income, fund large expenses, and even invest in new businesses. 

The cash value component and dividends (for participating policies) can be accessed in different ways. The cash value can be:

• Withdrawn 
• Accessed as a policy loan
• Used as a loan collateral

Withdrawing the cash value and taking a policy loan can be taxable if the amount exceeds the policy’s true value. When you use it as a loan collateral with a third party lender, it is not taxable. 

Dividends on the other hand can be used in two different ways:

• Policyholders can reinvest the dividends into their policy (enhanced protection and paid-up additions)
• Get paid in cash or hold on deposit 

When the dividends are reinvested into the policy, they are not liable to any taxes. If the policyholder chooses to get paid in cash or hold the dividend payout on deposit, it is subject to taxes. 

Whole life insurance for estate tax funding

When you pass away, it is assumed that you have disposed of all your assets and an executor will be required to pay any taxes before your estate is distributed among your beneficiaries. These assets include any Registered Retirement Savings Plan (RRSPs), capital gains, and more. 

The substantial value of these assets are also subject to the highest tax rates. Paying off these taxes significantly reduces the value that your beneficiaries get. 

If you pass away with an active whole life insurance policy, your beneficiaries (such as surviving family members) receive a tax-free cash payout from your insurance company. This payout is not considered part of your income or your beneficiaries’ incomes and is not taxed as such when you pass. This is because you paid your life insurance premiums using funds on which you paid income tax as well.

The payout from your whole life insurance policy offsets the taxes on your estate and provides immediate liquidity to meet any other estate settlement costs. 

Retirement planning with whole life insurance

While the primary purpose of a whole life policy is the death benefit, retired individuals can use the cash value component and the dividends to supplement their income. The cash value serves as an emergency fund that can be used for medical emergencies, paying off debt, travelling post retirement, children’s weddings or education, and more. 

The dividends can be reinvested in the policy to increase the death benefit and to buy additional coverage. This will enhance the legacy a policyholder leaves for their loved ones. Depending on the dividend strategy, policyholders can also access it as cash when required. 

Using whole life insurance for businesses

Whole life insurance offers several benefits for business owners, including key person insurance, funding a buy-sell agreement, and serving as collateral for a business loan. A whole life policy ensures the stability and continuity of business operations. Here’s how:

Diversify your investment portfolio

A whole life insurance policy is a reliable way to diversify your investment portfolio. It offers stability and guaranteed cash value growth and death benefit, making it a more stable investment as compared to market-dependent assets. 

Whole life insurance keeps you protected against market volatility especially during downturns. 

What is whole life insurance?

Whole life insurance is a type of permanent life insurance that offers lifelong coverage, has a death benefit, and a cash value component, all of which remain active as long as premiums are paid. With its investment component, a whole life policy offers a unique blend of stability, growth, and flexibility, making it a powerful financial product. 

The death benefit is the amount paid to beneficiaries upon the insured’s death, while the cash value is a savings feature that grows over time, offering guaranteed returns. 

Key features of whole life insurance

The features of a whole life insurance policy can be different based on whether it’s a participating or non-participating policy. Participating policies allow policyholders to receive dividends, which can be used to reduce premiums, purchase additional coverage, or be taken as cash.

These dividends are not guaranteed but depend on the insurer’s financial performance. In contrast, non-participating policies do not offer dividends but often come with fixed premiums and guaranteed benefits, providing more predictable coverage.

Both types offer lifelong protection and a cash value component, but the choice depends on individual financial goals and risk preferences.

Features of a participating vs. non-participating whole life policy

Whole life insurance vs other investment options

When compared to other investment options such as stocks, bonds, or real estate, whole life insurance proves to be a lower risk choice. This is because of the guaranteed cash value and dividends (in case of participating policies). 

Here is how whole life insurance compares to other investment options:

Can you make money on whole life insurance?

Yes, you can make money on a whole life insurance using the cash value and/or the dividends your policy generates. Both cash value and dividends are living benefits and can be accessed in different ways. 

While the cash value is technically a portion of your death benefit, accessing it as a policy loan that you repay will ensure your policy’s value remains intact. You can use your cash value to for any small or large financial needs such as:

• Medical emergencies
• Weddings 
• Children’s education
• Supplementing retirement income 
• And more

The dividends can either be reinvested into the policy or taken as cash or deposit. If you take the dividends as cash or deposit, they may be subject to tax. Dividends can be used for similar purposes as cash value. 

Do wealthy people use whole life insurance?

Yes, wealthy people use whole life insurance to grow, protect, and transfer their wealth. The death benefit from a whole life policy is tax-free, making it an ideal inheritance for the wealthy. High-net worth individuals with a whole life policy that has a significant cash value component can use it to invest in their businesses, take out a collateral loan, plan their estates, and more.

Common misconceptions about whole life insurance

Whole life insurance is often misunderstood due to its complex nature and the different investment options it offers. Some of the common misconceptions about whole life insurance are:

• It is too expensive: The high premiums of a whole life policy include the death benefit and the cash value or dividends. The investment components also grow in a tax-deferred manner, offsetting the high initial premium costs
• Other investment options are better: Unlike stocks, bonds, mutual funds, and real estate, whole life insurance is not subject to market risks. It is a less volatile investment option
• Whole life insurance is for the wealthy: This is a common misconception owing to the high premiums. But whole life insurance is for anyone who is looking for lifelong protection with guaranteed returns

How long does it take to build up money in a whole life insurance policy?

A whole life insurance policy typically starts building cash value after a few years, often around the second or third year of the policy. In the early years, most of the premium payments go toward covering the cost of insurance and administrative fees. 

The growth of cash value depends on the policy’s design, premium payments, and investment performance within the insurer’s portfolio. The timeline varies based on the policy structure and premium allocation.  

• Early years: Some cash value is generated, but most of the premium amount goes towards administrative costs 
• 3-5 years: Cash value begins accumulating meaningfully
• 10+ years: Cash value growth accelerates, benefiting from compound interest

Start building wealth with whole life insurance 

A whole life insurance policy is more than just a safety net for your loved ones—it is a versatile financial tool that offers guaranteed growth while you are alive. If you want to build wealth with a whole life policy but are unsure of how to go about it, schedule a call with one of our licensed advisors. 

A whole life insurance policy is a valuable and reliable tool for lifelong financial protection. This blog explores how Manulife’s whole life insurance can secure your family’s future while building a cash value that can be accessed as a living benefit. 

Learn about the key benefits of Manulife’s whole life insurance policy, and discover how it can play a role in your long-term financial planning.

What are the key features of Manulife whole life insurance?

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

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

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

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

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

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

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

Let’s understand the factors influencing the participating account:

Mortality rates: The death benefits of whole life policies are paid from the participating account. Insurers typically plan for the number of death benefits that they may have to pay in a given year. They make this assumption based on Canada’s overall life expectancy. Higher death benefits than expected will deplete the participating account’s funds faster, lower death benefits will have the opposite effect. This is why mortality rates are a crucial factor in determining how a participating account performs fiscally.

Policy cancellations: Based on past consumer behaviour, Manulife makes pricing assumptions of the number of policies that will be cancelled every year. If the cancellation numbers are lower, the participating account may be adversely affected, and vice versa.

Expenses and taxes: Underwriting costs, issuing contracts, making policy changes, and other administrative and operating expenses play a role in the participating policy’s performance. Manulife allocates resources towards these expenses in a manner that is fair and reasonable to the policy holders. If the operating charges are less than the company’s estimates, the participating account’s performance will be positive. If not, the performance may be affected negatively. 

Investment returns: The expected returns on an investment play a key role in determining the profitability of a participating account. If the actual returns on an investment exceed Manulife’s pre-determined numbers, it positively affects the participating account. The latter is true if the returns are lower than anticipated. 

Factors that influence Manulife’s participating accounts

Source: Manulife Participating Insurance Insight, 2023

Backed by one of Canada’s largest financial institutions, RBC Insurance offers a wide range of products designed to secure your financial legacy. In this review, we’ll explore their whole life insurance offerings, focusing on their key features, benefits, and pros and cons to help you decide if they’re the right fit for your needs.

What are the benefits of RBC’s whole life insurance?

RBC’s whole life insurance offers lifelong coverage with a cash value component you can access during your lifetime. Key benefits include:

• Five dividend options: You can choose to have your annual dividends issued as cash payments, reduced premiums, interest-earning deposits, paid-up additions, or enhanced insurance
• $25,000-$25M coverage: Depending on your needs, you can select coverage amounts ranging from $25,000 to $25 million
• Customizable add-ons: You can get enhanced coverage with optional add-ons like RBC YourTerm 10,15, 20, or 25 life insurance
• Coverage for ages 0-80: You can get coverage for yourself or loved ones at any stage of life
• Flexible payment options: You can choose between lifetime premium payments (Life Pay), or limited payment terms of 10 or 20 years (10 Pay, 20 Pay)

They also have three coverage options:

• Single-life: Insures one person and pays a tax-free death benefit upon their passing
• Joint-first-to-die: Insures two people and pays a tax-free death benefit when the first insured person dies
• Joint-last-to-die: Also insures two people but pays a death benefit when the second insured person dies

What are the different types of RBC whole life insurance?

RBC offers two participating whole life plans with lifetime coverage and cash value accumulation: RBC Growth Insurance and RBC Growth Insurance Plus. The plans also pay annual dividends, based on the performance of the “par” account, which is funded by premiums from participating policyholders. 

Here’s a closer look at the two plans:

• RBC Growth Insurance: Provides lifelong coverage starting at $25,000, with cash value accessible after five years. Annual dividends can be issued as:

• • Cash payments

• • Paid-up additions

• • Reduced premiums

• • Interest-earning deposits

• • Enhanced insurance (adds term coverage to your whole life insurance)

For policyholders under 18, the plan includes a juvenile guaranteed insurability benefit at no additional cost.

• RBC Growth Insurance Plus: Offers lifelong coverage starting at $250,000, with cash value accessible after the first year. It includes the same dividend options as the Growth Insurance plan.   

Key features of RBC’s Grow Insurance and Grow Insurance Plus

Source: RBC Growth Insurance and RBC Growth Insurance Plus Guide

What are the different whole life dividend options that RBC offers?

RBC’s whole life policies offer 5 dividend options:

• Cash payments: You can receive your dividends as cash, though it may be taxable
• Premium reductions: Dividends are applied to your premiums for the following year. Any excess dividends are paid to you directly
• Interest-earning deposits: Dividends are deposited into an interest-bearing account, which you can access anytime. Any interest earned is taxable
• Paid-up additions: This option uses dividends to buy additional life insurance. The added coverage can earn dividends and build its own cash value over time
• Enhanced insurance: Your dividends can also be used to buy a mix of paid-up additions and one-year term insurance. The insurance purchased using paid-up additions can earn dividends and build cash value in the future

How are dividends for RBC’s participating policies distributed?

Dividends in RBC’s participating plans—Growth Insurance and Growth Insurance Plus—are based on the performance of the participating, or “par” account. Various factors, including investment returns, policy cancellations, mortality claims, and administrative costs, can affect its surplus.

When the “par” account outperforms expectations, such as through higher investment returns or lower mortality claims, dividends are distributed to policyholders, based on their purchase date and policy type.

While dividends are not guaranteed and may vary, RBC has a strong track record of maintaining a stable dividend scale.

RBC whole life dividend scale for 2022-2024

• 2022: 6.00%
• 2023: 6.00%
• 2024: 6.25% (available till 31st March, 2025)

How much dividend does RBC pay?

RBC’s dividend payments depend on their dividend scale which changes annually. While the dividends in a par account are not guaranteed, historically, RBC has maintained a dividend scale interest rate of 6.00%. This was recently increased to 6.25%, effective April 1, 2024. Policyholders can expect their dividends to be paid according to this new rate until March 31, 2025.

As Canada’s first domestic life insurance company, Canada Life has a proven track record of helping Canadians secure their financial legacy. In this review, we’ll explore its whole life insurance offerings, designed to provide lifetime coverage with a built-in savings component.

Whether you’re looking to protect your estate or build wealth over time, this guide will help you decide if Canada Life’s whole life insurance meets your specific needs.

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

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

• No maximum coverage: Canada Life’s whole life policies have no set upper limit, meaning you can get as much coverage as you need. However, amounts over $50 million require special underwriting
• Four dividend options: Dividends can be received in the form of cash payments, premium reductions, paid-up additions, and enhanced insurance
• Additional Deposit Option (ADO): You can increase your policy’s coverage and cash value by making extra payments
• Flexibility with premium offset: You can cover some or all of your premium payments using dividends
• Children’s term life insurance rider: You can include term life insurance on your children with these policies. Future children are added at no additional cost until you turn 60

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

• Single life: Covers one person and pays a death benefit upon their passing
• Joint-first-to-die: Covers two people and pays a death benefit when the first insured person dies. The surviving person remains covered for an additional 60 days, during which they can buy a new policy on their life, with no underwriting
• Joint-last-to-die (premiums to first death): Covers two people with premiums payable until the death of the first insured person. Premium payments are higher under this plan
• Joint-last-to-die (premiums to last death): Covers two people with premiums payable until the death of the second insured person. Premium payments are lower under this plan

Types of whole life insurance offered by Canada Life

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

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

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

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

Canada Life provides four dividend options for policyholders:

• Cash payments: Receive dividends as cash payouts, though they may be taxable
• Premium reductions: Use dividends to reduce or stop out-of-pocket premium payments
• Paid-up additions: Purchase additional coverage to increase both death benefit and cash value
• Enhanced coverage: Combine paid-up additional coverage and term life insurance for maximum protection

How are dividends for Canada Life’s participating policies distributed?

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

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

Source: Canada Life

While dividends are not guaranteed and can vary, Canada Life has a strong track record of maintaining its dividend scale, having paid annual dividends at an interest rate of 5.25% to 5.50% over the past three years.

Canada Life whole life dividend scale 2022-2024:

• 2022: 5.25%
• 2023: 5.50%
• 2024: 5.50%

How are my Canada Life whole life insurance premiums invested?

Canada Life invests its participating policy premiums into two types of assets:

• Fixed-income assets: These investments provide steady returns through fixed-interest payments:
  • Public bonds: Government and corporate bonds with high credit ratings
  • Private debt: Loans made to companies by private financial institutions
  • Mortgages: Residential and commercial mortgage loans offering stable income
• Non-fixed-income assets: These investments carry more risk but offer higher potential returns:
  • Real estate: Commercial and residential properties generating rental income and capital appreciation
  • Public equity: Shares of publicly traded companies offering long-term growth potential
  • Private equity: Ownership stakes in private companies not publicly traded

Are “par” account investments affected by market conditions?

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

Life throws us surprises—some exciting, some challenging, and some that remind us why having a solid plan matters. While we can’t predict the future, we can prepare for it, and that’s where iA Whole Life Insurance comes in. Offered by iA Financial Group, this policy is designed to provide financial protection and a sense of security that grows with you over time. 

Whether you’re looking to safeguard your family, build long-term savings, or leave a meaningful legacy, iA Whole Life Insurance promises to be a steady partner in your financial journey. In this review, we’ll delve into the key features, benefits, and how it can stack up against your insurance needs.

What are the key features of iA whole life insurance?

iA’s whole life insurance comes in two varieties: non-participating whole life insurance and participating whole life insurance. 

While iA non-participating insurance has a minimum coverage of $10,000, iA PAR options have a starting coverage value of $25,000. Both plans have several additional benefits and riders to provide complete financial protection to insured individuals. Check out the main features of these whole life insurance options:

Key features of whole life insurance from iA

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

iA Financial Group offers a range of whole life insurance plans tailored to meet different financial goals, with options for both participating and non-participating whole life insurance. 

For participating whole life, there are primarily two plans to choose from: iA PAR Estate and iA PAR Wealth. While the Estate plan focuses on higher death benefits with lesser upfront cash value, the  Wealth plan generates higher cash value for the short-term goals of the insured individual.

1. Non-participating whole life insurance

iA Financial Group’s non-participating whole life insurance is designed for those who seek simple, reliable, and lifelong protection. 

This policy is an excellent solution for anyone looking to safeguard their family’s financial future or preserve their estate, offering guaranteed coverage and a range of benefits that remain in effect for life.

Key features of iA non-participating whole life insurance

• Guaranteed face amount and premiums: The policy provides a guaranteed face amount, ensuring that your loved ones or estate receives a predetermined benefit upon your passing
• Guaranteed surrender values: Over time, the policy builds guaranteed surrender values, offering an additional layer of financial security. This feature allows policyholders to access a portion of their policy’s value in case of emergencies or specific financial needs
• Paid-up insurance: With the option of paid-up insurance, you can enjoy full coverage without having to pay premiums for life. This provides flexibility and financial relief in later years, making it a highly appealing feature for those planning their retirement
• Flexible and personalized coverage: You can enhance your coverage with a variety of riders and additional benefits, including critical illness coverage, accidental death benefits, or child protection riders

Who can benefit from iA non-participating whole life insurance?

iA’s non-participating policy is ideal for individuals who value predictability and long-term security. It works especially well for individuals planning to leave behind a legacy or people looking to accumulate high financial coverage without placing bets on unpredictable dividends. Non-participating policies can benefit:

• Families looking to ensure their loved ones are financially secure
• Individuals aiming to leave a clear and structured legacy for their estate
• Those who prefer a straightforward insurance solution without market-based dividend fluctuations

What are the coverage options in iA non-participating whole life insurance?

iA Whole Life Insurance offers flexible premium payment options to suit various needs: L10 (payable in 10 years), L20 (payable in 20 years), L65 (payable until age 65), and L100 (payable until age 100). 

iA also offers T100 which gives insured individuals a simple way to access cost-effective lifetime coverage without cash value. These plans cater to diverse financial goals, from quick pay-offs to long-term commitments.

What are the different coverage options for iA whole life insurance?

iA whole life insurance is available in four different types to suit different coverage needs. Individual insurance covers only one person, with the face amount paid out upon their death. This type of insurance is also the only option compatible with the Child Life & Health Duo plan. 

For shared coverage, there is joint first-to-die insurance, which insures up to two people and pays the face amount upon the death of the first insured, terminating the policy thereafter.

Alternatively, joint last-to-die insurance covers two individuals but pays out only after both have passed, with premiums continuing after the first death. A variation of this, joint last-to-die, paid-up on first death, provides similar coverage but halts premium payments once the first insured dies, ensuring the coverage amount is paid upon the death of the second insured.

What are the riders and available benefits for iA non-participating whole life insurance?

iA Financial Group offers a variety of riders and additional benefits such as accidental death, AD&D, Guaranteed Insurability, waiver of premiums, critical illness coverage, and more, to enhance its non-participating whole life insurance policies. 

These options allow policyholders to create a comprehensive, tailored plan that aligns with their specific needs, providing extra financial security for unforeseen events.

Additional benefits

• Accidental Death (AD): Provides an extra payout if death occurs due to an accident
• Accidental Death and Dismemberment (AD&D): Offers benefits for accidental death or serious injuries, such as loss of a limb or eyesight
• Accidental Fracture (AF): Covers specific payments for fractures caused by accidents.
• Guaranteed Insurability (GI): Allows the insured to purchase additional coverage at future dates without needing further medical evidence
• Waiver of Premiums in the Event of the Applicant’s Disability (WPDis): Premium payments are waived if the applicant becomes disabled
• Waiver of Premiums in the Event of the Insured’s Disability (WPIDis): Premiums are waived if the insured becomes disabled
• Waiver of Premiums in the Event of the Applicant’s Death (WPD): Premium payments cease if the applicant passes away

Riders

• Child Critical Illness: Covers critical illnesses specific to children, offering financial relief during treatment
• Child Module and Child Module Plus: Provide comprehensive protection for children, including coverage for critical illness, death, and other risks
• Critical Illness: Pays a lump sum benefit if the insured is diagnosed with a covered critical illness
• Disability Credit: Offers financial assistance if the insured becomes disabled
• Hospitalization: Provides a daily benefit if the insured is hospitalized
• Hospitalization and Home Health Care: Covers hospitalization and expenses related to home health care
• Paramedical Care in the Event of an Accident: Covers paramedical services required due to an accident
• Supplementary Income (SI): Offers an additional income stream if specific conditions are met

2. Participating whole life insurance

Participating plans from iA Financial Group let policyholders benefit from the company’s performance through annual dividends. These dividends can be reinvested to grow your policy’s cash value or used in other ways, depending on your preferences. iA offers two standout participating whole life plans:

iA PAR Estate

Designed for individuals who want to leave a lasting legacy, iA PAR Estate is focused on maximizing the death benefit for estate planning purposes. This plan helps you efficiently transfer wealth to your loved ones or chosen beneficiaries while benefiting from the policy’s growth over time.

iA PAR Wealth

This plan is tailored for those aiming to build and access cash value during their lifetime. With a focus on wealth accumulation, iA PAR Wealth offers flexibility for personal or business financial needs, making it a popular choice for individuals with long-term growth objectives.

Features of iA PAR Estate and iA PAR Wealth

How much does whole life insurance from iA cost?

The cost of whole life insurance can vary on several factors such as age, sex, medical status, smoking status, coverage type, etc of the insured individual. For PAR policies, factors such as dividend scale and investment performance can also impact the cost of whole life insurance.

While the premiums can be the same, the surrender value and other benefits may differ from person to person.

For instance, for a 20-year-old, non-smoker female purchasing L100 whole life insurance with the face (coverage) amount of $100,000, the cash benefits can be as follows:

Non-PAR L100 cash value and paid-up insurance benefits

*For a 20-year-old, non-smoker female purchasing L100 whole life insurance with the face (coverage) amount of $100,000

How can you access dividends in an iA whole life insurance?

iA Financial Group offers four dividend options including paid-up additions, annual premium reduction, cash payouts and deposits with interest for their participating whole-life insurance plans:

• Paid-up additions: Dividends are used to purchase additional paid-up insurance, increasing both the policy’s face amount and its cash surrender value
• Annual premium reduction: Dividends are applied to reduce the amount of the next annual premium payable, lowering the out-of-pocket cost for the policyholder
• Payable in cash: Dividends are paid directly to the policy owner, providing immediate liquidity. This option may have tax implications 
• Deposit with interest: Dividends are deposited into a savings account managed by iA Financial Group, where they earn interest. The interest earned is taxable at the end of the year

How does iA calculate dividends?

Dividends are not guaranteed and may differ from one year to another based on the performance of iA’s participating (PAR) account. Each year, iA’s Board of Directors decides the dividend amount based on the company’s dividend policy, which ensures fair distribution among policyholders.

The dividend amount depends on the dividend scale, which reflects the financial performance of the participating account. This performance is influenced by factors such as investment returns, mortality rates, policy lapses, and expenses related to iA’s participating contracts. 

The dividend scale can go up or down based on these factors. Once dividends are declared, it is paid to the policyholder on the policy’s commencement date.

Here’s what iA’s dividend scale looked like in the last five years:

iA dividend scale interest rates

*Source: iA PAR account overview 2024

iA has announced that the dividend scale interest rate for 2025 is likely to surpass the 6.25% mark, showcasing higher cash value rises in participating account policies for the upcoming year.

Does iA whole life insurance offer surrender cash value?

Yes, iA whole life insurance provides surrender cash value, but its availability and timing vary depending on the type of policy:

• iA PAR Estate: Policyholders can access the surrender value starting from the 5th policy anniversary
• iA PAR Wealth: Surrender values become available as early as the 1st policy anniversary, offering greater flexibility
• Non-Participating Policies: The surrender value is accessible starting from the 11th policy year. However, T100 plans do not offer any cash surrender value

The surrender value serves as a source of liquidity for policyholders when needed. It can be accessed in several ways, such as by requesting a total surrender of the contract, making a partial withdrawal, or obtaining a policy loan advance. 

This flexibility allows policyholders to use the surrender value to meet financial needs while maintaining their policy benefits.

What are the additional benefits and riders offered by iA participating whole life insurance?

iA Financial Group offers a range of additional benefits and riders including additional term coverage, waiver of premiums, critical illness coverage and accidental benefits for their participating whole life insurance policies. 

These options allow policyholders to tailor their coverage to meet specific needs and enhance the value of their policy.

1. Term coverage

Policyholders can supplement their permanent life insurance with renewable and convertible term life insurance options, providing extra protection for a set period. Options include:

• T10 (Renewable and Convertible): Provides coverage for 10 years, with the option to renew or convert to permanent insurance without additional medical exams
• T20 (Renewable and Convertible): Similar to T10 but offers coverage for 20 years
• Pick-A-Term Options:
  • T25: Provides coverage for 25 years
  • T30: Offers coverage for 30 years

2. Child benefits

These riders ensure additional protection for children under the policy:

• Child Module: Offers basic life insurance coverage for children, providing financial protection and peace of mind for parents
• Child Module PLUS: Includes enhanced benefits for children, offering more comprehensive protection

3. Accident benefits

Accident riders provide additional financial support in case of accidental injuries or death:

• Accidental Death (AD): Pays an extra benefit to the beneficiaries if the insured’s death is due to an accident
• Accidental Death and Dismemberment (AD&D): Offers financial compensation for accidental death or dismemberment, helping cover unexpected expenses
• Accidental Fracture (AF): Provides a lump-sum benefit in the event of accidental fractures, helping offset medical costs

4. Waiver of premium riders

These riders ensure the policy remains active without requiring premium payments under specific circumstances:

• Waiver of Premiums in the Event of the Applicant’s Disability (WPDis): If the person who applied for the policy becomes disabled, premiums are waived to keep the coverage intact
• Waiver of Premiums in the Event of the Insured’s Disability (WPIDis): If the insured individual becomes disabled, the premiums are waived to ease the financial burden
• Waiver of Premiums in the Event of Death (WPD): If the policyholder passes away, future premiums are waived to ensure the policy benefits remain available to beneficiaries

What is iA’s Large Case Solutions program?

The iA Large Case Solutions program is a comprehensive support service tailored specifically for financial advisors working with clients who have more complex needs. It is designed to assist with the development and implementation of advanced financial strategies, particularly in the areas of insurance and savings products. 

This program helps advisors navigate intricate sales concepts and optimize tax strategies to create customized solutions that align with each client’s unique financial goals. By offering specialized expertise and resources, the iA Large Case Solutions provides clients with well-rounded, tax-efficient solutions that meet their long-term financial needs.

What is the disability benefit under iA participating whole life insurance?

iA’s participating whole life insurance offers a disability benefit designed to provide financial support to the policy owner when the insured, aged 18 or older, becomes totally disabled. This benefit, available at no extra charge, is drawn from the surrender value of the paid-up insurance. 

While it provides liquidity during periods of disability, it also reduces the face amount of the paid-up insurance. Below are the conditions and key terms associated with this benefit.

Conditions for receiving the disability benefit

• The insured must be totally disabled and remain so for at least 30 consecutive days before a request can be made
• Policy owners can request one disability benefit per 12-month period, issued as a single lump-sum payment
• The benefit amount cannot exceed the surrender value of the paid-up insurance at the time of the request
• The company may require evidence of total disability, including medical documentation
• Each payment may be subject to transaction and medical assessment fees
• Disability payments cease as soon as the insured is no longer considered totally disabled
• Restrictions and exclusions may apply

What is the Child Life and Health Duo plan offered by iA?

The Child Life and Health Duo plan from iA Financial Group is a comprehensive insurance solution designed to provide both life and critical illness coverage for children. This plan ensures financial security for families by addressing potential medical and financial challenges while building a foundation for the child’s future.

Some of the main features of the Child Life and Health Duo plan include:

• Dual coverage: Combines life insurance and critical illness insurance into one policy
• Critical illness protection: Provides coverage for a range of critical illnesses, offering a lump-sum benefit to help with medical expenses, recovery costs, or other financial needs
• Life insurance benefit: Ensures a payout in the event of the child’s passing, providing financial support for the family during a difficult time
• Convertibility: Offers the flexibility to convert the child’s coverage into an adult policy later in life without requiring additional medical exams
• Affordable premiums: Designed to offer comprehensive protection at a cost-effective rate
• Cash value growth: Includes a savings component that builds cash value over time, which can be accessed in the future for various financial needs

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

Yes, you can take out a loan against your iA whole life insurance policy through two types of policy loan advances: the cash loan advance and the automatic loan advance. 

Both types of loan advances allow the policyholder to access the cash value of the policy while still maintaining eligibility for dividend payments, though there are some important details and limitations to consider.

1. Cash loan advance

• The policy owner can request a cash loan advance at any time in writing
• The loan amount cannot exceed 90% of the surrender value of the basic coverage (including any reduced paid-up insurance, if applicable) plus 90% of the surrender value of any paid-up insurance, minus any amounts owed to the company

2. Automatic loan advance

• This type of loan advance is automatically initiated by the company if premiums are due and have not been paid by the end of the grace period
• The automatic loan advance cannot exceed the total surrender value of the policy, which includes the surrender value of the basic coverage, any reduced paid-up insurance, the surrender value of the paid-up insurance, and the balance of the dividend deposit account (if applicable)
• The total outstanding loan balance, including any other amounts owed to the company, cannot exceed the policy’s total surrender value

Are there any transaction fees applicable on iA whole life insurance?

Yes, iA whole life insurance policies may incur transaction fees, which are calculated per policy, not per insured. If multiple changes are made within the same policy, only the highest fee is charged, unless additional coverage or benefits are requested, in which case all fees are waived. 

If the same change is processed on multiple policies, a transaction fee will be applied to each policy. Additionally, a $50 fee is charged for loan or premium history requests. These fees are important to consider when making changes or requests related to your policy.

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

iA whole life insurance has several pros such as multiple dividend options, a variety of riders for both their PAR and non-PAR plans, faster plan approval via accelerated underwriting, and the pioneering iA Large Case Solutions program. 

However, there are some disadvantages such as non-availability of cash surrender value in the T100 plan and limited disability benefit access.

Pros and cons of iA whole life insurance

How to find the best iA life insurance quotes in Canada?

When searching for the best iA whole life insurance quotes in Canada, you have a few routes to consider. While you could spend hours browsing various websites and comparing policies on your own, this process can quickly become overwhelming and time-consuming. That’s where PolicyAdvisor comes in.

What makes PolicyAdvisor stand out isn’t just our competitive pricing and wide range of options, but also our lifetime after-sales support. Once you’ve secured your policy, we don’t leave you on your own. 

Our team of expert advisors is always available to assist with any questions or adjustments you may need, ensuring you receive continuous support throughout your journey. It’s a seamless, stress-free way to get the best coverage, knowing you’re fully supported now and in the future.

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.