Find the best whole life insurance quotes in Canada

Whether or not you need whole life insurance comes down to the length of protection you are looking for. If you want your family to receive a guaranteed death benefit when you pass away, then whole life insurance is the way to go.

Whole life plans are helpful for estate planning in Canada and can help cover taxes on assets like businesses or investment properties so your family doesn’t have to sell them and, instead, can inherit the assets in full. Additionally, whole life policies give you a cash surrender value (CSV), which is an asset you can access during your lifetime. The best approach is to compare quotes using our whole life insurance calculator to find the best rate for your coverage needs.

Most whole life policies are sold by Canada’s big three life insurance companies: Sun Life, Canada Life, and Manulife. These companies offer the most flexible whole life insurance products.

Smaller insurance companies or bank-owned insurers may only offer term life insurance. If you’re interested in bank-owned providers, you may only be able to get a basic form of whole life insurance, like term-to-100 or guaranteed life insurance. Many of the banks – even the big five – don’t offer participating whole life policies or even policies that accumulate a CSV. For more info, see our pages on BMO life insurance, RBC life insurance, and TD Bank life insurance.

Neither term life nor whole life insurance is better than the other; it comes down to your needs and financial goals. Term life insurance is less expensive and provides coverage for a specific period, typically 10, 20 or 30 years. Whole life insurance is more expensive, but it covers you for your entire life and has a guaranteed death benefit. To decide which one is best for you, consider how long your beneficiaries will need your financial support. 

You can cash out your whole life insurance policy in Canada through a withdrawal, loan or by surrendering the policy. Whether there is a penalty depends on the option you opt for. Make sure to consider carefully, as there can be disadvantages to accessing your cash value, such as triggering tax implications, incurring surrender fees, and being required to repay loans.

Whether whole life insurance is a good investment depends on your budget and investment goals, as the low rates of return might not offset the high premiums. The main benefit of a life insurance policy is that it pays out a guaranteed return, but the premiums are expensive and not suitable for most people. As an investment, a whole life policy provides you with coverage and earns you interest over time in a cash value account. This type of investment may best suit high net worth individuals and parents with lifelong financial dependents.

For more information, read our blog on this exact topic: Is whole life insurance a good investment?

Yes, a whole life insurance policy has a “guaranteed” cash value that will grow according to a formula the insurance company determines. The amount that is guaranteed will be calculated on your policy coverage amount. The bigger your premium, the larger the cash value of your life insurance.

Yes, you can borrow against a whole life insurance policy. The process of borrowing is a quick and easy way to access cash when you need it. Essentially, a policy loan is created that is borrowing against your death benefit, and your insurance company uses your whole life policy as collateral for the loan. Keep in mind that this isn't an interest-free loan, as your life insurance company will add interest to the balance, which accrues whether the loan is paid monthly or not. It's best to ask your insurance company how the borrowing process works, including the repayment plan and interest requirements.

For more information, read our guide to borrowing against a life insurance policy in Canada.