Best Whole Life Insurance Companies in Canada (2024)

The best companies for whole life insurance in Canada include Manulife, BMO Insurance, Sun Life, Empire Life, Desjardins, and more. The one you should choose depends on your needs.

Our expert advisors have ranked the top 15 Canadian whole life insurance providers to help you find the perfect match. We’ve ranked them based on the best for performance, the best for added features, the best for children’s policies, and more.

Keep reading to see our ratings and reviews of the best companies for whole life insurance in Canada!

How does whole life insurance work?

Whole life insurance works in the following manner:

• Lifetime coverage: Whole life insurance provides coverage for your entire life, as long as premiums are paid, ensuring your beneficiaries receive a guaranteed death benefit when you pass away.
• Cash value component: A portion of each premium payment goes into a cash value account that grows over time on a tax-deferred basis, offering a savings component alongside the insurance coverage
• Access to funds: The accumulated cash value can be accessed through policy loans or withdrawals, providing financial flexibility for emergencies, education expenses, or retirement income
• Dividends: Some whole life insurance policies pay dividends, which can be used to purchase additional coverage, reduce premiums, or be taken as cash, enhancing the policy’s value
• Financial security: The death benefit is generally paid out tax-free to beneficiaries, covering funeral costs, and debts, and providing ongoing financial support, ensuring peace of mind and financial stability for your loved ones

What are whole life insurance living benefits?

Whole Life Insurance Living Benefits include cash value accumulation, policy loans, dividends, and accelerated death benefits. As you pay premiums, a portion of the money builds cash value, which grows over time and can be accessed through loans or withdrawals. This cash value can fund a child’s education, cover emergency expenses, or supplement retirement income. Additionally, policy loans offer a flexible source of funds with typically lower interest rates and no credit check requirements, though unpaid loans reduce the death benefit.

Another key living benefit is the potential to receive dividends from the insurance company, which can be used to increase the policy’s cash value, reduce premiums, or be taken as cash. Furthermore, accelerated death benefits allow access to a portion of the death benefit if diagnosed with a terminal illness, providing financial support for medical expenses or other needs during a critical time.

What are whole life insurance death benefits?

Whole Life Insurance Death Benefits guarantee a payout to beneficiaries upon the policyholder’s death, offering financial security and peace of mind. The death benefit is paid out tax-free, ensuring that the full amount can be used for necessary expenses such as funeral costs, outstanding debts, or ongoing living expenses. This benefit provides a crucial safety net for your loved ones, ensuring they are not burdened with financial stress during a difficult time.

Additionally, whole life insurance can play a vital role in estate planning by covering estate taxes and providing liquidity to the estate, preventing the need to quickly sell valuable assets. The death benefit can be used to pay off debts like mortgages or car loans, relieving your family of these financial obligations. It also serves as an income replacement, maintaining your family’s standard of living by covering everyday expenses, education costs, and other financial needs.

The best whole life insurance in Canada 2024

Our team at PolicyAdvisor.com has spent years studying the industry to bring you a list of top companies with the best offerings in different categories.

The following reviews are a must-read for anyone thinking about purchasing whole life insurance. They will help you decide the best options for you and your family.

Full list: 15 Best Whole Life Insurance Companies in Canada – March 2024

• Assumption Life: Best for quick issue
• Beneva: Best for complimentary additional features
• BMO: Best for non-participating plans
• Canada Life: Best for charitable giving
• Canada Protection Plan: Best for non-medical
• Desjardins: Best for paying off premiums early
• Empire Life: Best for balanced performance
• Equitable Life: Best mutual company
• Foresters: Best for smokers
• iA: Best for health accommodation
• Manulife: Best for overall performance
• RBC: Best for children’s plans
• Sun Life: Best for high net-worth individuals
• UV: Best for long-term growth
• Wawanesa: Best value for guaranteed benefits

Assumption Life Whole Life Insurance Review

Canada’s best whole life insurance for:
Quick-issue policies

Assumption Life Insurance wins the award for its potential for a fast-issue policy with no doctors or blood tests. They don’t ask you to do a medical test if you’re 18-45 and if you want whole life insurance coverage up to $999,999. This is sometimes called accelerated issue policies.

As you get older, they may not give you accelerated issue for as much coverage. But you can still get up to $50,000 without a medical exam up to age 69.

But that’s not the only reason Assumption came out on top in our rankings. They offer two types of coverage: one that pays dividends (participating) and one that doesn’t (non-participating). If you choose the participating policy, you have 5 options for how you get dividends, and you can change your options every year.

They also offer extra options called life insurance riders to help you add more coverage. And, if you want a plan without answering any medical questions at all, they also offer non-medical plans.

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Beneva Whole Life Insurance Review

Canada’s best whole life insurance for:
Complimentary additional features

Beneva whole life insurance products are a good choice if you want a whole life policy that includes additional benefits. Their plans have all the usual benefits included in a whole life insurance plan. But their plans can also:

• Cover multiple lives — up to 5, depending on the plan
• Include 4 benefits free of charge to give you additional coverage: Extreme Disability Benefit, Disability Waiver of Premium Benefit, Accidental Death & Dismemberment (AD&D) Benefit, and Accidental Fracture Benefit
• Have 2 rider options, which can give you extra coverage at a low price: Critical Illness Insurance Rider and Child Rider

They give you several payment options if you want to finish paying your life insurance premiums early. And you can get policies without a medical exam with their simplified or guaranteed plans.

Most of Beneva’s plans are life insurance with cash value but not dividends. But they do offer Universal Life Insurance, which is a permanent life insurance plan that pays out dividends but comes with a higher risk.

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BMO Whole Life Insurance Review

Canada’s best whole life insurance for:
Non-participating plans

Bank of Montreal (BMO) is a great choice for people who want whole life insurance with cash value and aren’t too concerned about getting dividends.

Their policies are all non-participating, so you don’t get dividend payments. But you get cash value and a yearly Performance Bonus that you can use similarly to how you would use dividends.

BMO Insurance also gives you A LOT of choices for how to handle your life insurance costs:

• Premium switching, which lets you change your premium payment period
• Premium offset, where you can stop paying premiums and have them deducted from your paid-up cash value instead
• Additional payments, where you can pay extra premiums to increase the death benefit and cash value
• Policy loans, where you can borrow against your cash value

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Canada Life Insurance Whole Life Insurance Review

Canada’s best whole life insurance for:
Charitable giving

Canada Life’s My Par Gift is the perfect plan for people who want to leave a lasting impact by donating to charity. This whole life policy was created just to help you do that.

You just pay one tax-advantaged lump sum premium of $10,000 and the policy is locked in. The charity receives the policy’s cash value and dividends, which they can then use however they need to.

Once you pass away, the charity receives the full death benefit. This means you can help the charity and its work for more than a lifetime.

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Canada Protection Plan Whole Life Insurance Review

Canada’s best whole life insurance for:
Non-medical coverage

Canada Protection Plan is a great option if you want whole life coverage without taking a medical test. The plans are non-participating, so you will not get dividends. But they’re still straightforward, affordable life insurance policies that can give you at least $10,000 in coverage.

Their plans are also good for funeral insurance. This type of insurance covers expenses related to the end of life, such as funeral costs or any remaining debts.

CPP gives you a wide range of coverage options if you have health isssues, so your chances of finding a plan that fits your needs are very high.

They also have regular policies for people who are healthy and who want quick approval.

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Desjardins Whole Life Insurance Review

Canada’s best whole life insurance for:
Paying off premiums early

Desjardins gives you some of the best options to pay off your policy early so you only have to pay it for a certain number of years. This is called limited pay, and Desjardins is one of the only Canadian companies that lets you pay it off in as little as 5 years.

You pay higher yearly or monthly premiums for those 5 years only and then you don’t have to pay anything else for the rest of your life. Or you can choose to pay in 10, 20, 15 years, or until age 100.

When you choose limited pay, you can rest easy knowing you have lifetime protection, cash value growth, annual dividends, and no more bills!

Desjardins’ plans also come with a lot of benefit options you can add on for even more coverage. They offer basic plans without dividends and a special permanent life policy for seniors 50+ who don’t want to take a medical exam.

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Empire Life Whole Life Insurance Review

Canada’s best whole life insurance for:
Balanced performance

Empire Life’s whole life product, EstateMax, is a great option for people who want to build wealth in the long term and increase their life insurance payout. They don’t give the highest cash values in the Canadian market, but they’re far from being the lowest.

This is a good choice if you want steady, secure growth — especially the longer you have your policy.

Their Optimax plan is also designed specifically for people who plan to retire soon and want to access their plan’s cash value in the policy’s first 20 years.

Empire’s policies can be just as affordable as some Term-to-100 policies. It’s no wonder they’re one of the most popular choices for whole life coverage in Canada.

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Equitable Life Whole Life Insurance Review

Canada’s best whole life insurance for:
Mutual values

If you specifically want to work with an insurance company that is partially owned by the people who have insurance with them, Equitable Life may be the right choice for you.

This is called a mutual company. This kind of business doesn’t have to answer to stakeholders or market pressures like other carriers do. They can sometimes offer more competitive rates on insurance as a result.

There are other insurance mutuals, like Beneva and Wawanesa. But we feel their strongest points are in other areas, so Equitable takes the cake in this category.

Equitable only offers whole life policies that earn dividends, and their cash values can grow quite well in the long run.

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Foresters Financial Whole Life Insurance Review

Canada’s best whole life insurance for:
Smokers

If you’re planning to quit smoking, wouldn’t it be better if someone was paying you to do it? Foresters Life Insurance doesn’t exactly give you money, but their Quit Smoking Incentive Plan is a great motivator.

Smokers usually get charged more for life coverage, or they can be denied completely. Foresters Financial offers the opposite. They give you lower rates if you commit to stop smoking within 2 years.

That’s more air in your lungs, more money in your wallet, and lifelong coverage that your family can rely on!

All of Foresters’ plans give you cash value, and some also pay dividends. Plus, they have a wide variety of life insurance options for people who have health issues.

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Industrial Alliance Whole Life Insurance Review

Canada’s best whole life insurance for:
Health accommodation

If you have health issues, you should seriously consider Industrial Alliance (iA) for your insurance needs. They have something called a Superior Risk Tolerance Program, where you’re more likely to get approved even if your health isn’t in peak condition.

You can get a participating or non-participating plan, and they give you a lot of flexibility. You have options like:

• Limited pay options to pay off your premiums early
• Cover up to 9 people under the same policy
• Optional life insurance riders and benefits to add to your coverage
• Pay premiums semi-annually, instead of monthly or yearly like most providers

Of course, many Canadian companies also offer no-medical insurance — which we rated Canada Protection Plan as the best in. But if you want standard coverage despite health concerns, iA is a great choice too.

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Manulife Whole Life Insurance Review

Canada’s best whole life insurance for:
Overall performance

There’s a reason why Manulife is one of North America’s largest life insurance companies. They’re quite successful and most of their products are high-quality. In Canada, their whole life plans are no different.

If you want all-around good performance that you can rely on, Manulife is a great choice. They offer both participating and non-participating plans, and plans that don’t make you take a medical exam.

You get all the standard benefits of a whole life policy with Manulife. And, they even give you the option to change your mind and choose a different payment option if you like.

Choose Manulife if you’re not really looking for anything specific but need a policy that checks all the boxes:

• Affordable
• Flexible
• Reliable
• Robust investment options
• Good amount of coverage
• And more!

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RBC Whole Life Insurance Review

Canada’s best whole life insurance for:
Children’s plans

If you’re looking to buy the best whole life insurance for children, Royal Bank of Canada (RBC) Insurance could be a great option.

They have a special feature called the Juvenile Guaranteed Insurability Benefit that will give children a financial leg-up once they grow up. This benefit acts like a Hall Pass for your child or grandchild. When they reach adulthood, they can buy a new policy or add more insurance to their plan without having to take a medical test or go through any hassle to get approved.

Many other companies will give you the option to buy this kind of benefit — but RBC includes theirs for free! This is why we have to recommend them for whole life insurance policies for children in Canada.

Their plans are great for other uses too, like estate planning or just long-term financial planning in general.

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Sun Life Insurance Whole Life Insurance Review

Canada’s best whole life insurance for:
High net-worth individuals

The more you earn, the more insurance you’ll likely need. You’ll want to choose a provider who you know can provide those high amounts of coverage, and Sun Life Insurance is exactly that choice.

Sun Life is another one of Canada’s largest life insurance providers. They offer a minimum coverage amount of $250K, which is way higher than the $10,000 or less some other providers start with.

They offer plans with just cash value (non-participating) and plans with both cash value and dividends (participating). Plus, even if you have health issues you can apply for their plans that don’t ask you to take a medical exam.

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UV Whole Life Insurance Review

Canada’s best whole life insurance for:
Long-term growth

If you want an insurance policy that can give you a LOT of growth over years, UV just might be the right pick for you. They just came out with a new Whole Life High Values plan in 2022 (fairly recent for insurance!) that promises your patience will pay off.

If you keep the plan until you’re 65, your cash value growth could be as much as 50% of what your original coverage amount was with this high-performance plan. That’s no small figure!

UV also gives you life insurance options if you have health issues. But UV’s plans are all non-participating, so you won’t get any dividend payments from them.

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Wawanesa Whole Life Insurance Review

Canada’s best whole life insurance for:
Value for guaranteed benefits

Most investments involve some level of risk. Not so with Wawanesa! They offer high cash values that you can access early on if you need to, especially if you pay the policy off in 20 years.

With Wawanesa, there’s a very good chance you will “break even” — have a higher cash value than the entire amount of premiums you paid to the company in those 20 years or less!

They give you more insurance coverage and have some of the lowest whole life insurance quotes in Canada. It’s no surprise that they’re one of the most affordable options people choose.

You get to choose between a participating or non-participating policy, or one that doesn’t make you take a medical exam.

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Why should I get permanent life insurance Canada?

There are 3 very good reasons why you should get permanent life insurance:

1. To cover your final expenses
2. To access cash value now/during retirement
3. To plan your estate

Of course, you don’t need to fit into just these categories to get permanent life insurance quotes. Most people can benefit from whole life insurance in Canada one way or another!

If you’re unsure, speak with an advisor or insurance broker to find out if a permanent plan can work for you.

Are there any alternatives to whole life insurance?

here are several alternatives to whole life insurance that cater to different financial needs and preferences:

1. Term life insurance:
   • Overview: Provides coverage for a specific period (e.g., 10, 20, or 30 years).
   • Benefits: Typically more affordable than whole life insurance for the same coverage amount.
   • Considerations: Coverage ends at the end of the term, and it does not accumulate cash value.
2. Universal life insurance:
   • Overview: Offers flexible premiums and death benefits, with a savings component linked to interest rates.
   • Benefits: Allows adjustments in coverage and premium payments over time.
   • Considerations: Premiums can vary based on market conditions, and policy performance affects cash value growth.
3. Variable life insurance:
   • Overview: Combines death benefits with investment options in stocks, bonds, or mutual funds.
   • Benefits: Potential for higher returns on cash value compared to traditional whole life insurance.
   • Considerations: Investment risk is borne by the policyholder, and cash value can fluctuate with market performance.
4. Indexed universal life insurance:
   • Overview: Offers flexible premiums and death benefits, with cash value growth tied to a stock market index.
   • Benefits: Potential for higher cash value growth than traditional universal life insurance, with downside protection.
   • Considerations: Returns are capped, and policy performance depends on index performance.
5. Guaranteed universal life insurance:
   • Overview: Provides lifetime coverage with fixed premiums and a guaranteed death benefit.
   • Benefits: Offers permanent coverage without the investment risks associated with other types of permanent insurance.
   • Considerations: Limited or no cash value accumulation, and premiums are typically higher than term life insurance.

Choosing the right insurance type depends on your financial goals, risk tolerance, and budget. Each alternative offers distinct features that may better suit your specific needs compared to traditional whole life insurance.