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- Canada Life offers two participating whole life policies that offer lifetime coverage, cash value growth, annual dividends, and flexible payment options (Max 10, Max 20, Pay to age 100)
- Estate Select is the more affordable option, starting at $25,000, with delayed access to cash value
- Wealth Select focuses on early cash value access and starts at $100,000
- You can include term life insurance for your children with these policies. Any future children will be covered at no additional cost until you turn 55
Canada Life’s participating life insurance policies maintain a dividend scale interest rate of 5.75%, unchanged from the previous two years. Additionally, Canada Life has consistently paid dividends for over 170 years, and its participating account has never missed a distribution year. This is a remarkable record that reflects the insurer’s financial resilience and reliability across economic cycles.
In this review, we explore Canada Life’s whole life insurance offerings, that provide lifelong protection, guaranteed cash value accumulation, and long-term dividend potential.
Wealth Select
My Par Gift
20-pay
pay-to-100
PolicyAdvisor rating
Canada Life whole life insurance earns a 4 out of 5 rating from PolicyAdvisor. It is a leading choice for Canadians who want to use whole life insurance to support charitable giving. Its My Par Gift plan is specifically designed for charitable contributions, with a single premium and cash value starting from year one. It is also known for its long history of dividend payments, a large and financially strong participating account, and disciplined long-term financial management.
Canada Life’s participating plans share in company earnings through annual, non-guaranteed dividends. Dividends depend on participating account investment returns, insurance claims, expenses, taxes, lapses, policyholder behaviour, and surplus management. Each year, Canada Life’s Board of Directors reviews and approves the dividend scale for the following policy year.
Canada Life participating account financials:
- Participating account size: $59.2 billion in total assets
- Policies in force: 1.4 million participating life insurance policies
- Participating account surplus: $3.06 billion
- Dividend history: Dividends paid to participating policyowners since 1848
- Participating account structure: Canada Life operates the largest combined open participating account in Canada
- Dividend drivers: investment experience, mortality experience, expenses, taxes, lapses, withdrawals, and policy terminations
Canada Life’s long dividend history and sizable participating account support stable long-term performance. However, like all insurers, dividends are not guaranteed and can increase or decrease depending on annual experience.
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Canada Life offers two participating whole life options
- Estate Select: A traditional participating whole life policy focused on long-term guarantees and stable estate protection
- Wealth Select: A participating whole life policy designed for higher early cash value growth, long-term accumulation, and estate enhancement potential
Both plans provide lifetime coverage with guaranteed base values and the opportunity to enhance policy value through dividends.
Source: Canada Life Financial Facts 2024
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Canada Life whole life insurance costs and value
This example shows the projected premiums, cash value growth, and death benefit for a 30-year-old non-smoker female purchasing $100,000 of Canada Life whole life coverage with life pay and enhanced paid-up additions.
| Policy Year | Age | Annual premium paid | Total premiums paid | Total cash value | Death benefit |
| 0 | 30 | $800.00 | $800.00 | $0 | $100,000.00 |
| 10 | 40 | $800.00 | $8,000.00 | $1,745 | $100,000.00 |
| 20 | 50 | $800.00 | $16,000.00 | $13,419.00 | $100,000.00 |
| 30 | 60 | $800.00 | $24,000.00 | $36,739.00 | $100,000.00 |
| 40 | 70 | $800.00 | $32,000.00 | $68,267.00 | $121,507.00 |
| 50 | 80 | $800.00 | $40,000.00 | $118,346.00 | $164,409.00 |
| 55 | 85 | $800.00 | $44,000.00 | $151,779.00 | $192,112.00 |
| 60 | 90 | $800.00 | $48,000.00 | $190,882.00 | $224,144.00 |
* Values shown are non-guaranteed illustrations based on current assumptions and the insurer’s dividend scale. Actual premiums, cash values, and death benefits may vary. This example is for informational purposes only and does not constitute a policy guarantee.
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. However, ADO is subject to MTAR limits, so excess payments may be restricted once the policy is close to the tax-exempt shelf
- Flexibility with premium offset: You can cover some or all of your premium payments using dividends. However, you must bear in mind that premium offset is not guaranteed and depends on investment performance, interest environment, and company experience
- 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 55
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
| Category | Estate Select | Wealth Select |
| Premium type | Fixed, with flexible payment options (Max 10, Max 20, and Pay to age 100) | Fixed, with flexible payment options (Max 10, Max 20, and Pay to age 100) |
| Coverage amount range | $25,000 to no maximum | $100,000 to no maximum |
| Dividend options |
|
|
| Policy loan availability | Allow loans from cash value. However, ADO premium payments are paused while a loan is active. They resume after full repayment | Allow loans from cash value. However, ADO premium payments are paused while a loan is active. They resume after full repayment |
| Payment flexibility | Monthly or annually | Monthly or annually |
| Living benefits |
|
|
| Additional riders | Accidental death benefit, waiver of premium benefit, guaranteed insurability rider, business growth protection rider (if policy corporately-owned), and child’s term life insurance rider | Accidental death benefit, waiver of premium benefit, guaranteed insurability rider, business growth protection rider, and child’s term life insurance rider |
Source: Canada Life
What are the pros and cons of Canada Life’s whole life insurance?
Canada Life’s whole life policies offer several benefits, from unlimited coverage to multiple payment and dividend options. However, they also have some limitations. Let’s take a closer look at them:
| Pros | Cons |
| Offers unlimited coverage based on your needs (special quote needed for amounts over $50M) | Under the joint-last-to-die (first death) plan, Additional Deposit Option (ADO) payments stop after the first insured person’s death. That means the survivor can no longer enhance their policy using ADO contributions |
| Includes term life insurance rider for children that covers future children at no additional cost (until you turn 55) | Premium offset availability depends on the participating account’s earnings |
| Offers flexibility to increase coverage and cash value through the additional deposit option (ADO) | Canada Life has the lowest dividend rate compared to other insurers |
| Allows you to offset some or all of your premiums using dividends |
Highlights of Canada Life’s whole life insurance policy document
A Canada Life whole life insurance policy document (for Estate Select or Wealth Select) typically includes the following core sections and details:
- Policyholder and insured information: Names, birth dates, and identifying information for the policy owner and the insured person
- Coverage amount: The face amount payable as the death benefit, along with any additional coverage or riders selected.
- Premium schedule: The premium amount, payment frequency (monthly, annual, etc.), and payment duration (10-pay, 20-pay, or to age 100). This section also outlines grace periods and the consequences of missed payments
- Dividend options: The available choices for using annual dividends, such as receiving them in cash, reducing premiums, purchasing paid-up additions, or selecting enhanced coverage
- Guaranteed values: Tables showing the annual buildup of guaranteed cash value and death benefit. Non-guaranteed values based on current dividend scales are also typically included
- Policy loans and withdrawals: Rules for accessing cash value, including loan interest rates and how additional deposits are treated if a policy loan is active
- Riders and optional benefits: Information on add-on features such as children’s term insurance, accidental death benefits, waiver of premium, and guaranteed insurability, along with the conditions for each
- Beneficiary designation: Instructions for naming or changing beneficiaries and an explanation of revocable versus irrevocable beneficiary status
- Plan structures: Details on whether the contract is single life, joint-first-to-die, or joint-last-to-die, and any related privileges such as survivor purchase rights
- Termination and surrender conditions: Requirements and outcomes if the policy is cancelled or surrendered, including any surrender charges and the cash value payable to the owner
- Investment and participating account disclosure: Information on how premiums are invested within the participating account and how dividends are determined for policyholders
- Other legal provisions: Definitions, limitations, exclusions, such as the suicide clause, incontestability rules, reinstatement rights, and instructions on how to submit a claim
These sections are designed to give policyholders clear disclosure of their coverage, obligations, and available options throughout the life of a Canada Life whole life insurance policy.
What are the different limited-pay options offered by Canada Life?
Canada Life offers its participating whole life policies (Estate Select and Wealth Select) with three standard premium payment structures: 10-pay, 20-pay, and pay-to-age-100. The first two are true limited-pay designs, while pay-to-100 is a lifetime premium schedule that is often grouped with them as a third option.
- Max 10 (10-pay): All required premiums are paid over 10 years. After year 10, the base policy is fully paid-up as long as no new riders or additional deposits are added
- Max 20 (20-pay): Premiums are level and payable for 20 years. After year 20, the base policy becomes paid-up for life
- Pay to age 100: Premiums remain level and continue until age 100. This is not a limited-pay option in the strict definition, but it is one of the three standard payment patterns available
Estate Select and Wealth Select can be issued using any of the three premium schedules (Max 10, Max 20, or pay-to-100) for both single-life and joint-life structures. Policyholders can later use features such as premium offset, where dividends cover ongoing premiums, to reduce or eliminate out-of-pocket payments. Contractually, however, the three payment structures listed above are the available choices at issue.
What are the different whole life dividend options that Canada Life offers?
Canada Life offers four dividend options that allow policyholders to customize the performance of their participating whole life insurance to their financial goals.
- Cash payments: Dividends can be received as cash payouts, providing immediate flexibility, though the amount received may be taxable depending on the policy’s adjusted cost basis
- Premium reductions: Dividends can reduce or eventually eliminate out-of-pocket premiums through a premium-offset strategy, depending on long-term dividend performance
- Paid-up additions: Many policyholders reinvest dividends to buy paid-up additional coverage, which increases the death benefit, guaranteed cash value, and future dividend-earning potential, helping the policy compound over time
- Enhanced coverage: This option combines paid-up additions with a term insurance component, offering higher early protection while gradually transitioning to permanent paid-up coverage as the policy matures
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.
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 5.75% over the past three years.
Dividend Scale - Participating Whole Life Insurance
Compare dividend rates from top Canadian insurers
| 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|
| Equitable | 6.05% | 6.25% | 6.40% | 6.40% |
| Manulife | 6.10% | 6.35% | 6.35% | 6.35% |
| iA Financial Group | 5.75% | 6.00% | 6.25% | 6.35% |
| Desjardins Insurance | 5.75% | 6.20% | 6.30% | 6.30% |
| RBC Insurance | 6.00% | 6.00% | 6.25% | 6.30% |
| Sun Life | 6.00% | 6.00% | 6.25% | 6.25% |
| Empire Life | 6.00% | 6.00% | 6.00% | 6.25% |
| Foresters Financial | 5.50% | 5.50% | 5.50% | 6.25% |
| Co-operators | 5.90% | 5.90% | 6.00% | 6.00% |
| Assumption Life | 5.75% | 5.75% | 5.75% | 5.75% |
| Canada Life | 5.25% | 5.50% | 5.50% | 5.75% |
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| Asset class | % of Account | What it means for policyholders |
| Fixed income (Total 60.0%) | Stable returns that support guarantees | |
| Public bonds | 28.3% | Long-term stability and predictable income |
| Private placements | 14.9% | Higher yield with controlled risk |
| Mortgages | 9.8% | Strong cash flow and diversification |
| Cash & equivalents | 7.0% | Liquidity for claims and guarantees |
| Non-fixed income (Total 30.7%) | Helps support future dividend potential | |
| Public equity | 13.7% | Market growth participation |
| Real estate | 12.3% | Inflation hedge and rental income |
| Private equity | 4.7% | Long-term growth with low correlation |
| Other assets | 9.3% | Derivatives and other holdings used for risk management |
Source: Canada Life Combined Open Participating Account – June 30, 2025
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.
How can I access my Canada Life whole life cash value?
You can access your policy’s cash value through:
- Cash withdrawals: You can withdraw part or all of your cash value. A full withdrawal will result in your policy’s cancellation
- Policy loans: You can borrow against your cash value. However, you won’t be able to make Additional Deposit Option (ADO) payments while your loan is active
- Collateral loan: You can use your policy as collateral for a loan
- Premium offset: If you have enough cash value, you can use it to pay part or all of your due premiums
What additional benefits or riders does Canada Life offer on their whole life plans?
Canada Life offers several additional benefits or riders on its whole life policies, including:
- Total disability insurance benefit: Covers required premium payments if the insured experiences certain disabilities. To qualify, the insured must be 18 or older when the policy is issued
- Accidental death benefit: Provides a higher payout if death is caused by certain types of accident. This can help beneficiaries manage unexpected payments that may arise due to the covered accident
- Waiver of premium benefit: Covers required premium payments if the insured under this benefit becomes disabled
- Guaranteed insurability rider: Allows you to obtain new permanent policies on the insured person without medical underwriting
- Business growth protection rider: Allows you to purchase additional permanent policies on the insured person over a 10- or 15-year period
- Children’s term life insurance rider: Provides term life insurance coverage for your children, including adopted and stepchildren. Future children are automatically added at no additional cost until you turn 55
How to apply for Canada Life’s whole life insurance with PolicyAdvisor?
You can get a personalized whole life insurance quote for Canada Life through PolicyAdvisor, where you can compare different plans and policies from Canada’s top providers. Schedule a free consultation with our licensed advisors to explore the best options to protect your legacy.
Frequently asked questions
Is Canada Life’s whole life insurance worth it?
If you want lifelong protection with cash value growth that you can access in many ways, a whole life policy could be a smart choice. However, premiums for whole life insurance are generally higher than those for term life and may exceed some budgets.
Does Canada Life offer participating policies with dividends?
Yes. Canada Life offers two participating whole life policy plans, Estate Select and Wealth Select, with flexible payment options.
Do I need medical underwriting for a Canada Life whole life insurance plan?
Yes, Canada Life requires medical underwriting for new whole life insurance policies. However, if you already have whole life insurance, you can enhance your coverage using the Guaranteed Insurability Rider, without any underwriting.
How does the Canada Life participating account work?
Canada Life’s participating account pools premiums from all participating policyholders and invests them in a diversified portfolio of assets. The account’s earnings are influenced by various factors, including investment returns, mortality claims, policy cancellations, and operational expenses. When the account’s earnings exceed expectations, the surplus is distributed among policyholders as dividends.
What is the children’s term life insurance rider?
The children’s term life insurance rider is an optional add-on to Canada Life’s whole life insurance policies. It provides term life coverage for your biological, adopted, and stepchildren. Future children are automatically covered at no additional cost until you turn 55.
What happens if I stop paying my premiums?
If you miss a payment on your Canada Life whole life insurance policy, you have 31 days to make it up. If the premium remains unpaid after this period, Canada Life will automatically take out a policy loan on your behalf, provided your policy has enough cash value. This loan will keep your policy active as long as there’s sufficient cash value to cover future premiums and interest charges.
Canada Life’s participating whole life insurance provides lifetime protection with guaranteed cash value growth and long-term dividend potential. Its two plans, Estate Select and Wealth Select, offer flexible premium structures, access to living benefits, and strong liquidity options supported by a participating account that has paid dividends every year for more than 170 years. These policies are designed for Canadians who want permanent insurance, predictable growth, and tax-efficient estate or wealth planning
