7 Best Whole Life Insurance in Canada

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Getting life insurance plays a significant role in easing your life and finances. Although life insurance is not akin to older adults alone, younger adults can get life insurance, especially if they have dependents who need financial support. However, for seniors, life insurance can come in handy in covering tons of expenses such as outstanding debt, funeral costs, medical bills, etc.

Generally, life insurance can be pretty pricey as you age; nonetheless, since there is lesser term life insurance for seniors, whole life insurance comes as an alternative.

This article will be reviewing the seven best whole life insurance in Canada, their features, pros, and cons.

What is Whole Life Insurance?

Whole life insurance is also referred to as permanent life insurance, is an insurance type that offers consumers protection from purchase day till death. Also, this insurance typically comes with an investment or cash value element linked to it.

Once you pay for whole life insurance coverage, your insurer invests a part of your premium and uses it to generate cash value – this is usually a tax-deferred saving or investment. In turn, you can withdraw or borrow against this cash value during your lifetime.

However, since whole life insurance gives you lifetime coverage, it usually has a higher premium. Nonetheless, these policies do not expire as long as you pay your premiums.

Approach to Whole Life Insurance

Different perks come with buying a whole life insurance plan. These perks differ per insurance company, and below are some of them:

  • Enhanced Protection 

Enhanced protection is available to consumers who usually purchase one-year term life insurance for the policyholder, in addition to the whole life plan. Conversely, doing this allows the insurance company to offer a more competitive price for protection. Also, it frees up the premiums that go towards investment instead of direct protection.

  • Paid-Up Additions 

With paid-up additions, you can earn dividends while the value of your investment continues to grow indefinitely. On the other hand, you can use the premium to purchase additional whole life insurance, which increases your total payout size.

  • On Deposit/Cash Accumulation 

On Deposit/Cash Accumulation allows the insurance company to handles all dividends due to a policyholder. In addition, this procedure, in turn, makes the insured earn a competitive interest rate.

  • Paid in Cash 

The paid-in cash method is the most accessible approach of all. It involves the insurance company paying each policyholder’s dividends directly to them. In addition, you may have to report a part or all the paid-in cash on your income tax return if you are using this approach.

  • Premium Reduction

With the premium reduction approach, the insurance company uses the dividends due to a policyholder to pay for a part or all of the insurance policy’s premiums. However, if the available dividend exceeds the premium due, your insurer will use the excess as the On Deposit/Cash Accumulation approach.

7 Best Whole Life Insurance

Below are the seven best whole life insurance in Canada, their features, pros, and cons.

1. Assumption Life

Assumption life has a unique insurance system that does not require its members to undergo a medical test before getting coverage, depending on their ages and plan range. Their plan comes in five different products for consumers looking for non-medical life insurance policies.

Nonetheless, you can get coverage up to CA$999,999 for clients between the ages of 18 – 45. Note that the amount of coverage accelerated issues lessens as one ages. However, it still averages between CA$50,000 for ages 66 – 69.

Assumption Life Product Coverage

  • Life insurance
  • Group insurance (life, health, dental, disability)
  • Critical illness
  • Travel insurances
  • Mortgage loans
  • Financial services
  • Annuities and segregate funds.

Pros of Assumption Life Insurance

  • Accessible and simplified non-medical coverage
  • Flexible
  • Swift and easy processing
  • Package exchange and conversion option
  • Online access
  • Tons of term coverage options
  • Mortgage coverage option

Cons of Assumption Life Insurance

  • No digital policies
  • Pricey policy fees and rider fees on non-medical policies

2. BMO Whole Life Insurance

BMO offers a unique whole life insurance plan for individuals, common-law partners, or business owners. The coverage extends to mortgages and other debts. Also, it caters to dependents, and consumers can use it to protect their businesses and key staff.

However, since it is a non-participating plan yearly, your insurer adds a performance bonus instead of a dividend for you. Some of these benefits include premium change, policy loans, additional payments, and premium offset.

Features of BMO Whole Life Insurance

  • Guaranteed level premiums
  • Death benefit
  • Guaranteed cash value

Pros of BMO Whole Life Insurance

  • Affordable
  • Multiple term life coverage option
  • Coverage alteration
  • Benefit program availability
  • Coverage conversion option
  • Online access
  • Multi-policy discount availability

Cons of BMO Whole Life Insurance

  • No digital policies
  • Longer-term life insurance policies are not renewable.

3. Canada Protection Plan Whole Life Insurance

Canada Protection plan provides tons of non-participating whole life insurance options for users. Their packages are pretty affordable, starting from CA$10,000.

Ideally, they have coverage for funeral costs and other expenses. And as long as you are consistent with your payment, your premium is guaranteed for life.

Yet, depending on your health situation and the coverage amount, you might not require a medical exam to start as the Canada protection plan has a non-medical option.

Canada Protection Plan Coverage

  • Guaranteed acceptance life
  • Deferred life
  • Simplified life
  • Preferred life

Pros of Canada Protection Plan

  • Variety of products to choose from
  • Swift accessibility
  • Online application
  • Several terms availability
  • Accessible to temporary residents
  • Credit card payment
  • Convertible coverage plans
  • Decreasing term option

Cons of Canada Protection Plan

  • Pricey
  • Limited coverage amount
  • Shorter coverage age – coverage ends a the age of 80

4. Empire Life Insurance

Empire Life insurance is unique for its 8-pay option, and it offers eight different ways to pay off your whole life insurance premiums. Also, it provides coverage for 10, 20, or 30-years and a permanent product up to age 100. The packages are flexible, affordable, and renewable.

Empire Life Insurance Coverage

  • EstateMax
  • Empire whole life insurance
  • Optimax

Pros of Empire Life Insurance

  • Versatile coverage option
  • Policy exchange
  • Instant approval
  • Online access
  • Personalizable
  • Competitive premiums
  • Cash values
  • Electronic contract delivery

Cons of Empire Life Insurance

  • Limited-term options
  • Pricey renewable term coverage

5. Equitable Life Whole Life Insurance

Equitable is prominent for offering affordable life insurance options available for both term and permanent life insurance. Generally, these options are made for individuals and business owners.

The opportunity for individuals offers basic protections for families’ financial security. On the other hand, the alternative for business owners is designed for entrepreneurs and businesses.

Equitable offers a non-guaranteed cash value suitable for Canadians looking for long-term financial planning. In turn, the company rewards consumers with cash values.

Equitable Life Whole Life Coverage

  • Equimax Estate Builder 

The Equimax estate builder is a long-term value plan that allows users to pass on wealth to loved ones and other beneficiaries for estate planning and charitable purposes.

  • Equitable Wealth Accumulator

The Equimax Wealth Accumulator centers on enhancing cash value during a client’s earlier years. As a result, this option is suitable for small businesses as it provides business protection. Also, individuals can leverage this option to access their cash values in their early retirement years.

Pros of Equitable Life Whole Life

  • Online account access
  • Family plan availability
  • Prospect to qualify for EquiLiving critical illness insurance
  • Critical illness coverage
  • Term policies conversion

Cons of Equitable Life Whole Life

  • No payment term option
  • Lack of electronic policy
  • Average policy rates
  • Limited-term options

6. Foresters Financial

Foresters Financial is a term insurance product, although users can renew and convert the plan to their permanent life insurance product. In addition, this insurance company provides both participating and non-participating whole life products to consumers.

Foresters financial is suitable for individuals for meeting alternating and different financial needs. Also, it comes with the perks of optional plans for:

  • Children’s life insurance
  • Accidental death benefit
  • Waiver of premiums
  • Additional term conditions

Foresters Financial Coverage

  • Simplified Non-Par Whole

This product is a fixed, non-participating premium product without medical exam requirements. And it is suitable for consumers looking for coverage for end-of-life expenses.

In addition, individuals on this plan will not have any outstanding income taxes on the death benefit. Also, it offers up to CA$1,000 to the beneficiaries for bereavement aid. Beneficiaries can use this fund for grief counselling.

  • Advantage Plus Whole Life

The Advantage Plus Whole Life package is a more flexible plan that allows customization. And it provides financial security for beneficiaries.

In addition, it has lifetime death protection, guaranteed cash value, and guaranteed premiums. It comes with a premium payment option of 10-pay, 20-pay, or pay-to-age-100.

Pros of Foresters Financial

  • Availability of multiple coverages
  • Flexible payment option
  • Membership perks
  • Convertible plan

Cons of Foresters Financial

  • Lack of online access
  • No digital or e-policy
  • Pricey

7. Industrial Alliance

Industrial Alliance offers a non-participating whole life insurance plan that comes with unique customization. It has different payment options and plan categorization ranging from the 10-pay, 20-pay, pay-to-65, to the life-pay

In addition, industrial alliance insurance has a package covering up to 9 people on the same policy alongside several optional riders. Also, it comes with a flexible payment option that allows policyholders to choose packages that suit their financial conditions.

Pros of Industrial Alliance

  • Flexible policy options
  • Customizable coverage
  • Availability of non-medical products
  • Pick-a-term option
  • Online access
  • Optional disability rider

Cons of Industrial Alliance

  • No digital policy
  • Pricey

Conclusion

When it comes to whole life insurance, there are tons of unique options available to Canadians. However, each has its distinct feature that differentiates them from others.

Ultimately, you might want to evaluate a company’s size, financial strength, and technology they offer to see if they suit you before choosing an insurance company.

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.