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- Permanent life insurance can help provide a lifelong financial legacy, cover final expenses, and support estate planning
- Equitable Life, Manulife, Canada Life, RBC Insurance, Sun Life, and Empire Life are among the best permanent life insurance companies in Canada
- The right insurer depends on your needs, including whether you prefer participating or non-participating whole life insurance or need coverage for seniors or smokers or any other profile
- Seniors and smokers can qualify for permanent life insurance, although eligibility, premiums, and underwriting requirements vary by insurer
- Consider your family’s needs, outstanding debts, estate planning goals, and desired cash value when deciding how much permanent insurance coverage to buy
The best permanent life insurance companies in Canada include Equitable Life, Manulife, Canada Life, RBC Insurance, Sun Life, Empire Life, iA Financial, Foresters Financial, Beneva, Wawanesa, and BMO. The right insurer can vary depending on whether you prefer guaranteed cash value, potential dividends, flexible premium payments, or coverage based on your age and health.
Quick overview:
| Category | Insurers |
| Best whole life insurance companies | Equitable Life, Manulife, Empire Life, Sun Life |
| Best participating whole life insurance companies | Equitable Life, Manulife, Canada Life, RBC |
| Best non-participating whole life insurance companies | Manulife, Wawanesa, iA, BMO |
| Best permanent life insurance for seniors | Canada Life, Manulife, Wawanesa, iA Financial |
| Best permanent life insurance for smokers | Foresters Financial, Equitable Life, Beneva, Manulife |
Types of permanent life insurance policies
A permanent life insurance policy provides lifelong coverage as long as the policy remains in force and its contractual requirements are met. Unlike term life insurance, which covers a specified period, permanent insurance can provide a death benefit whenever the insured dies.
The two main types of permanent life insurance are:
- Whole life insurance: Provides lifelong coverage with guaranteed premiums, a death benefit, and cash value features, as outlined in the policy contract. Participating whole life insurance policies may pay dividends, which are not guaranteed, while non-participating (non-par) policies offer contractual guarantees without any potential dividends
- Universal life insurance: Provides lifelong coverage with flexible premiums, adjustable coverage options and an investment account. However, investment returns are not guaranteed, and policy fees and insurance charges can reduce account value. If returns underperform or premiums are insufficient, you may need to contribute more to keep the policy in force
What are the best permanent life insurance companies in Canada?
The following insurers offer permanent whole life insurance options worth comparing across different coverage and applicant categories.
Best whole life insurance companies
To get the right whole life insurance company, compare features such as payment options, cash value potential, and coverage needs. The best whole life insurance companies include Equitable Life, Manulife, Sun Life, and Empire Life.
- Equitable Life offers two participating Equimax plans: Equimax Estate Builder and Equimax Wealth Accumulator for estate planning and wealth accumulation. These plans also include the built-in KIND program, which provides compassionate benefits of up to 50% of the base coverage amount
- Manulife provides multiple premium payment options, including pay 10, pay 20, pay to 90, and pay to 100, as well as wellness rewards through its Vitality program
- Sun Life is worth considering for high-net-worth buyers seeking more extensive coverage. It offers Sun Par Protector II, Sun Par Accumulator II, and SunSpectrum Permanent Life II with multiple coverage options, including single life, joint first-to-die or joint last-to-die
- Empire Life has multiple whole life insurance options: Term 100, Solution 100, EstateMax and Optimax Wealth. The participating account is backed by a $1.32 billion fund size, and Optimax Wealth has multiple payment options: 8 Pay, 10 Pay, 20 Pay and Life Pay to age 100 options
We selected insurers based on their range of whole life plans, premium payment options, coverage options, cash value features, DSIR, and suitability for different financial goals, including estate planning and wealth accumulation. For instance, Equitable Life has the highest DSIR as of 2026 at 6.40%; Manulife has multiple payment options and wellness rewards; Empire Life has EstateMax for estate planning benefits; and Sun Life has multiple coverage options.
Best participating whole life companies
Equitable Life, Manulife, Canada Life, and RBC Insurance are among the leading participating whole life providers. These policies may pay dividends and build cash value, although dividends are not guaranteed. To get the best dividend-paying whole life insurance companies, you should compare features such as dividend options, dividend scale interest rate, participating account fund size, and financial strength.
- The 2026 dividend scale interest rates (DSIR) for top whole life insurance companies range from 6.00% to 6.40%: Equitable Life leads at 6.40%, followed by Manulife, RBC at 6.30%, and Canada Life at 6.00%
- Canada Life also stands out for its $62.8 billion participating fund, which is the largest in Canada, while its history of paying dividends dates back to 1848
- Equitable Life and Manulife are worth comparing for their dividend-paying policies and cash value potential, and dividend scale and interest rate stability. Manulife offers multiple payment options with its participating policies: 10-pay, 20-pay, and pay to 90 or 100 options
- RBC whole life insurance is available with five dividend options: cash, premium reduction, dividends on deposit, paid-up additions, and enhanced insurance
We assessed insurers based on their participating policy options, dividend choices, current dividend scale interest rates (DSIRs), participating fund information, and long-term cash value potential. Canada Life has the largest participating account fund size, Equitable Life has the highest DSIR, while Manulife and RBC have flexible policy features.
| Insurer name | Dividend scale interest rate (as of 2024) | Dividend scale interest rate (in %, as of 2025) | Dividend scale interest rate (in %, as of 2026) |
| Equitable Life | 6.40% | 6.40% | 6.40% |
| Manulife | 6.35% | 6.35% | 6.35% |
| Canada Life | 6.25% | 6.30% | 6.30% |
| RBC | 5.50% | 5.75% | 6.00% |
*Dividend scale interest rates are not guaranteed and may change annually. They are not the actual dividend rate paid to policyholders.
Dividend scale interest rate (DSIR)
- Dividend scale interest rate (in %, as of 2024)
- Dividend scale interest rate (in %, as of 2025)
- Dividend scale interest rate (in %, as of 2026)
- Dividend scale interest rate (in %, as of 2024)
- Dividend scale interest rate (in %, as of 2025)
- Dividend scale interest rate (in %, as of 2026)
Best non-participating whole life companies
Manulife, Wawanesa, iA, and BMO are some of the best non-participating whole life insurance companies in Canada. You can compare their coverage limits, premium structures, and policy guarantees to find the right fit.
- Manulife’s Family T100 lets you pick from multiple coverage options starting from $100,000. It also offers a living benefit that lets you advance up to 50% of your total coverage if diagnosed with a terminal illness that has a life expectancy of less than a year
- BMO’s whole life insurance provides non-participating coverage for those who prioritize contractual guarantees over potential dividends. BMO’s current performance bonus rate is 6.00%
- iA offers a non-participating plan with coverage of up to $10 million. It provides limited-pay options of pay 10, pay 20, pay 65, or pay to 100
- Wawanesa whole life insurance is an option for buyers seeking straightforward permanent life coverage. The company determines the premium based on age-based pricing and offers Lifetime Term to Age 100, which provides coverage for a lifetime
We picked insurers offering contractual guaranteed premiums, death benefits, flexible payment periods, and coverage options suited to buyers who prefer certainty over potential dividends. BMO was the best pick for us in this category, followed by iA, Manulife, and Wawanesa.
Best permanent life insurance for seniors
The top life insurance companies for seniors include Canada Life, Manulife, iA Financial, and Assumption Life. Seniors should compare permanent policies based on age eligibility, health underwriting, premium affordability and the amount of coverage needed for final expenses, estate costs or inheritance planning. Some policies may offer simplified underwriting, but coverage limits and eligibility vary.
- Canada Life is a good choice for seniors who want flexible coverage. Its Wealth Achiever Plus and Estate Achiever Plus accept applicants up to age 85 and also offer a unique 5-year term option for older applicants
- Manulife offers guaranteed issue coverage limits with up to $100,000 in coverage for seniors who don’t qualify for traditional coverage
- Assumption Life offers simplified and guaranteed issue whole life insurance options for seniors who may have difficulty qualifying for traditionally underwritten policies. Its Platinum, Golden, and Silver Protection plans offer coverage without a medical examination, although applicants must answer health questions and meet the applicable eligibility requirements
- iA Financial Group offers permanent life insurance options for seniors who want lifelong protection, including simplified underwriting alternatives for those who may have difficulty qualifying for traditional insurance
We considered age eligibility, underwriting requirements, simplified or guaranteed issue options, available coverage amounts, and premium affordability. We also assessed how well each insurer’s permanent life insurance products meet seniors’ needs, including covering final expenses, preserving an inheritance, and managing estate costs. Our final selections prioritize insurers that offer accessible coverage options for older applicants, with flexibility to accommodate different health conditions and financial circumstances.
Best permanent life insurance for smokers
The best life insurance companies for smokers include Foresters Financial, Equitable Life, Manulife, and Beneva. Smokers can compare permanent life insurance from multiple insurers because underwriting rules, tobacco classifications and premiums differ. The best fit depends on smoking frequency, age, medical history, desired coverage and payment period.
- Foresters Advantage Max stands out because its Quit Smoking Incentive Plan allows smokers to benefit from lower premiums immediately, rather than waiting until they’ve quit smoking to qualify
- Equitable Life’s Equimax participating whole life insurance allows smokers to request a change to a non-smoker classification after the policy is issued, without needing to purchase an entirely new policy
- Beneva offers life insurance options for smokers who want financial protection today and the opportunity to qualify for lower premiums after quitting. This applies to policyholders who have stopped using tobacco for at least 12 consecutive months
- Manulife Par with Vitality Plus combines permanent life insurance with a wellness program that rewards healthier habits, including activities related to smoking cessation
We compared insurers based on tobacco underwriting rules, premium considerations, available permanent policy options, and features that may benefit smokers or policyholders who quit smoking and seek a non-smoker classification. We also considered each insurer’s flexibility in reassessing smoking status and the potential for policyholders to reduce premiums after meeting non-smoker eligibility requirements.
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Factors to consider when choosing the right permanent life insurance company
You should evaluate policy guarantees, cash value growth, dividend potential, financial strength and how well the insurer’s products align with your long-term goals. Here are things to consider when comparing permanent life insurance providers in Canada.
- Understanding types of permanent policies: Before choosing an insurer, decide which product suits your needs. The two main options are whole life and universal life insurance. Whole life policies can be participating, which may pay dividends, or non-participating, which offer contractual guarantees. Your choice should depend on whether you prefer potential dividend growth or predictable policy values
- Review guaranteed cash value and death benefits: Compare each insurer’s guaranteed cash surrender values and death benefits at different policy durations. For participating policies, review guaranteed values separately from illustrated values that include projected dividends
- Check premium payment options: Insurers may offer limited-pay options, such as 10-pay or 20-pay, or premiums payable until a specified age. Choose a payment schedule that fits your budget and long-term financial plans
- Compare dividend scale interest rates: If you are considering buying participating whole life insurance, review the insurer’s current dividend scale interest rate (DSIR) and historical changes. A higher DSIR does not necessarily mean a higher policyholder return, so compare the full policy illustration and dividend options
- Evaluate financial strength and insurer stability: Review the insurer’s financial strength ratings, regulatory disclosures and ability to meet its long-term obligations. Permanent life insurance can last for decades, making the insurer’s financial stability an important consideration
How much permanent life insurance coverage do you need?
The amount of permanent life insurance coverage you need is roughly 5 to 10 times your annual income. However, the final coverage will be dependent on your financial obligations, income, outstanding debts, estate planning goals, and the inheritance you want to leave to your beneficiaries. To estimate your coverage needs, add up your major financial obligations and goals, then subtract existing life insurance coverage and available assets you intend to use toward these needs.
To estimate your coverage needs, add up your major financial obligations, including:
- Outstanding debts: Personal loans, credit card balances and other liabilities
- Income replacement: The income your dependants would need to maintain their lifestyle
- Mortgage: The remaining mortgage balance on your home
- Education expenses: Future education costs for your children
- Final expenses: Funeral costs, outstanding medical bills and other end-of-life expenses
- Estate planning and business succession: Estate settlement costs, applicable taxes, business debts and ownership transfer expenses
For example, suppose Mr. John has $50,000 in outstanding debts, $1 million in income replacement needs, a $400,000 mortgage, $100,000 in education expenses and $15,000 in final expenses. His estimated coverage need would be $1.565 million. If he already has $200,000 in life insurance and $100,000 in available assets dedicated to these needs, he may need approximately $1.265 million in additional coverage.
Thus, the final coverage amount should reflect your financial goals and the premiums you can comfortably maintain over the long term.
How is permanent life insurance taxed for Canadians?
In Canada, permanent life insurance offers several tax advantages, depending on the policy and how you use it:
1. Tax-deferred growth:
Investment or cash value growth within an exempt permanent life insurance policy generally accumulates on a tax-deferred basis
2. Death benefit taxation:
- Paid to named beneficiaries: Death benefits paid to a named beneficiary are generally received tax-free and are not treated as taxable income
- Paid to the estate: If you do not name a beneficiary, the death benefits go to the estate; they may be subject to probate fees, depending on the estate’s outstanding liabilities
3. Withdrawals, surrenders and policy loans
- Policy surrender: Cancelling a policy may trigger taxable income if the proceeds exceed the policy’s ACB
- Partial withdrawals: Withdrawals may result in a taxable policy gain, depending on the amount withdrawn and the policy’s ACB
- Policy loans: Borrowing against cash value can trigger taxable income depending on the loan amount and the policy’s ACB
4. Life insurance premiums
- Personal policies: Premiums are generally not tax-deductible
- Employer-paid premiums: Employer-paid life insurance premiums may be a taxable benefit to the employee, depending on the type of coverage and arrangement
Is permanent life insurance worth it?
Whether permanent life insurance is worth it or not depends on your coverage requirements and budget. Permanent life insurance can be worth it if you want lifelong coverage, tax-deferred cash value growth and a way to leave a financial legacy. It may be particularly useful for estate planning, covering final expenses or funding business succession.
However, permanent policies typically cost more than term life insurance, and accessing cash value can have tax implications. If you only need coverage while paying off a mortgage or raising children, term life insurance may be a more cost-effective option.
Which is better: whole life or universal life insurance?
Whole life insurance may be a better fit if you want lifelong coverage, predictable premiums and guaranteed cash value, depending on the policy. Universal life insurance offers more flexibility in premiums and investment choices but requires closer monitoring because investment performance and policy charges can affect cash value. For those who want a simple policy structure and long-term financial stability, whole life insurance can offer greater peace of mind.
Our advisor’s take on the best permanent life insurance in Canada
At PolicyAdvisor, we help our clients compare permanent life insurance options across 30+ insurers, based on their long-term financial goals, coverage needs, and budget. We recently helped a client who wanted lifelong protection, affordable premiums, and the potential to build cash value. Based on his preferences, we recommended Equitable Life’s Equimax participating whole life insurance.
Client profile:
- Age: 40 years
- Occupation: Software engineer
- Family: Married with children
- Primary concern: Lifelong financial protection and leaving an inheritance
- Coverage goal: Permanent life insurance with cash value potential
- Additional priority: Predictable premiums and long-term financial planning
Why we would consider Equitable Life’s Equimax:
- Lifelong protection for his family: As a married professional with dependants, he wanted coverage that would remain in place beyond his working years to help provide a financial legacy for his family
- Excelerator deposit option: This deposit option allowed him to make extra tax-deferred contributions to enhance the policy’s cash value
- Variable dividend options: Multiple dividend options to reduce the premiums, increase the death benefit, receive cash, or earn interest
- High DSIR: Equitable Life has maintained the highest DSIR of 6.40% in 2026 in Canada, which offered him the potential for long-term dividend growth
How to buy permanent life insurance in Canada
At PolicyAdvisor, our licensed advisors will help you compare life insurance quotes from 30+ insurers. Here’s how you can get started:
- Speak with a licensed advisor: Get personalized guidance on which policy best suits you from one of our expert advisors
- Share your needs: Tell us about your coverage goals, budget, age and financial priorities
- Compare quotes: Explore whole life insurance options from multiple insurers, including participating and non-participating plans
- Choose your policy: Select the plan that aligns with your long-term goals and budget
- Complete your application: Submit the required information and complete any underwriting steps, including a medical exam if needed
- Review your policy: Review your policy documents, confirm the details and activate your coverage once approved
Ready to get life insurance coverage? Schedule a free call with one of our licensed advisors and get permanent life insurance coverage that best fits your needs.
Call 1-888-601-9980 to speak to our licensed advisors right away, or book some time with them below.
Frequently asked questions
What are the best permanent life insurance companies in Canada?
Some of the leading permanent life insurance companies in Canada include Equitable Life, Manulife, Canada Life, RBC Insurance, Sun Life, Empire Life, iA Financial, and BMO Insurance. Based on your budget and coverage needs, you can pick any of these insurers for your permanent coverage needs.
What is a better type of permanent life insurance: whole life or universal life?
Whole life insurance may suit people who want lifelong coverage, predictable premiums, and guaranteed cash value under the policy contract. Universal life insurance on the other hand requires monitoring because investment performance and policy charges can affect cash value.
What is the difference between participating and non-participating whole life insurance?
Participating whole life insurance may pay dividends based on the insurer’s participating account performance and dividends, these dividends are however not guaranteed. Non-participating whole life insurance does not pay policyholder dividends but can offer contractual guarantees for premiums, death benefits, and cash values.
Can seniors qualify for permanent life insurance in Canada?
Yes, seniors can qualify for permanent life insurance, depending on their age, health, and the insurer’s eligibility rules. Some providers offer simplified or guaranteed issue policies with fewer medical requirements, although these may have lower coverage limits, higher premiums, or waiting periods. Canada Life, Manulife, Assumption Life, and iA Financial Group are options to explore.
Should I buy permanent life insurance in Canada?
Yes, you can consider buying permanent life insurance if you need lifelong coverage, want to leave an inheritance, or have estate planning or business succession goals. Whole life insurance policies can also build cash value along with offering lifelong protection.
Which Canadian insurance company offers the best participating whole life insurance?
Equitable Life, Manulife, Canada Life, and RBC Insurance are worth comparing for participating whole life insurance. Equitable Life offers Equimax Estate Builder and Equimax Wealth Accumulator, while Canada Life stands out for its participating fund and long history of paying dividends.
How much permanent life insurance coverage do I need?
The amount of permanent life insurance you need depends on your outstanding debts, mortgage, dependants’ financial needs, final expenses, and estate planning goals. You can add these financial obligations together, then subtract existing life insurance coverage and assets available to meet those needs.
What is the difference between permanent and term life insurance?
Permanent life insurance provides lifelong coverage as long as the policy remains in force, and some policies build cash value. Term life insurance covers you for a set period, such as 10, 20, or 30 years, and generally does not build cash value. Permanent insurance usually costs more but may suit people seeking lifelong protection and estate planning, while term insurance can be a more affordable choice for temporary financial needs.
Permanent life insurance in Canada provides lifelong coverage and may build cash value over time. The best companies, including Equitable Life, Manulife, Canada Life, and RBC Insurance, offer different whole life options to suit various financial goals. You can compare premiums, guarantees, dividend potential, and payment flexibility to find the right policy for your needs.
