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- Foresters Financial offers the most affordable whole life insurance for smokers, with low premiums starting at $88/month for a 30-year-old female smoker
- iA Financial is the best choice for seniors and retirees, owing to its Superior Risk Tolerance Program and simplified issue options
- Manulife consistently provides the lowest overall whole life premiums across multiple age groups and policy types. Its participating plans, especially with the Vitality Plus program, reward healthy habits and offer long-term savings
- Equitable Life offers the most value in participating whole life policies, with a high 6.4% dividend scale interest rate in 2024
- What affects whole life insurance costs in Canada?
- Which companies provide the cheapest whole life insurance in Canada?
- Can I use whole life insurance as a tax-free investment in Canada?
- Can I get whole life insurance in Canada without a medical exam?
- Can I use whole life insurance for retirement income in Canada?
- How to choose the right whole life insurance company in Canada?
- Is whole life insurance worth it in Canada in 2025?
- Frequently asked questions
Whole life insurance is gaining immense popularity among Canadians, not just for its lifelong coverage, but also for its ability to build cash value over time. In 2023, LIMRA reported that participating whole life premiums rose by 12%, leading to overall growth in the life insurance market. However, whole life insurance is fairly expensive. That’s why it’s important to find the cheapest whole life insurance companies that offer strong long-term value at the lowest possible cost.
In this guide, we’ll talk about the cheapest whole life insurance companies in Canada, categorized by what they’re best at, helping you make the best choice for your financial future.
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What affects whole life insurance costs in Canada?
Whole life insurance offers guaranteed lifetime coverage and builds cash value, but it also comes at a higher cost than term insurance. Insurance companies use several factors to calculate your premium. Understanding these can help you make a more informed decision when choosing a policy.
- Age and health: Your age plays a major role in how much you pay. The older you are when you apply, the higher your premium will be. Health conditions such as high blood pressure, diabetes, or a history of serious illness can also lead to increased rates, as they raise the risk for the insurer
- Smoking status: If you smoke or use tobacco products, insurers will classify you as a higher-risk applicant. As a result, your premiums can be higher compared to non-smokers. Quitting and remaining tobacco-free for at least 12 months can help you qualify for non-smoker rates
- Type of policy: Participating whole life policies pay dividends and allow your cash value to grow faster, but they usually cost more. Non-participating policies do not pay dividends, so they offer lower premiums but less growth potential
- Cash value growth and Dividend Scale Interest Rate (DSIR): Policies with strong cash value growth often rely on higher dividend scale interest rates. These policies offer better long-term returns but usually come with higher upfront costs
- Riders and customization: Adding optional riders like critical illness coverage, child term riders, or accidental death and dismemberment (AD&D) benefits increases your premium
Which companies provide the cheapest whole life insurance in Canada?
Several life insurance providers in Canada offer competitively priced whole life policies tailored to different needs. Whether you’re a senior, a smoker, or simply looking for the best value, there’s an option that fits. Here are the top companies known for offering the cheapest whole life insurance in 2025, each excelling in a specific category:
- Foresters Financial – Cheapest for smokers
- iA– Cheapest for seniors and retirees
- Canada Life – Cheapest for riders and customizations
- Manulife – Cheapest for overall premiums
- Equitable Life – Cheapest for participating whole life policies with dividend rates
- Sun Life – Cheapest for high-net-worth individuals
- Canada Protection Plan – Cheapest for individuals with pre-existing conditions
Cheapest whole life insurance for smokers – Foresters Financial
Smokers typically pay higher premiums for life insurance, but Foresters Financial offers one of the most affordable options through its Essential Whole Life policy. This non-participating plan provides lifetime coverage with guaranteed premiums and benefits, making it a budget-friendly choice for smokers.
Foresters is also known for its Quit Smoking Incentive Plan, which can allow eligible smokers to qualify for non-smoker rates after one or two years of being tobacco-free, potentially reducing costs further over time.
Cost of Forrester Financial whole life insurance
| Age | Monthly Premium (Male Smoker) | Monthly Premium (Female Smoker) |
| 30 years | $97/month | $88/month |
| 40 years | $141/month | $126/month |
| 50 years | $217/month | $189/month |
| 60 years | $376/month | $336/month |
*Illustrated monthly costs for smokers of various age ranges seeking $100,000 in coverage for a whole life insurance plan
Cheapest whole life insurance for seniors and retirees – iA
iA Financial Group stands out as one of the most senior-friendly insurers in Canada due to its Superior Risk Tolerance Program. This underwriting approach gives older applicants a better chance of approval and access to lower premiums, even with moderate health risks.
iA offers both participating and non-participating whole life options, with simplified issue choices for faster approval and less medical scrutiny. This makes iA an ideal fit for retirees seeking final expense planning and wealth building.
Showcasing iA’s Non-PAR L100 cash value and paid-up insurance benefits
| Age | Coverage amount | Cash value (Guaranteed) | Paid-up insurance (Guaranteed) |
| 30 years | $100,000 | $680 | $1,667 |
| 40 years | $100,000 | $3,540 | $18,333 |
| 50 years | $100,000 | $6,710 | $35,000 |
| 60 years | $100,000 | $15,590 | $51,667 |
| 65 years | $100,000 | $21,770 | $60,000 |
| 70 years | $100,000 | $29,460 | $65,714 |
| 80 years | $100,000 | $48,620 | $77,143 |
| 90 years | $100,000 | $71,480 | $88,571 |
| 100 years | $100,000 | $100,000 | $100,000 |
*Illustrated the cash value and paid-up insurance for an individual seeking l100, Non-PAR whole life insurance plan with $100,000 in coverage
Cheapest whole life insurance for riders and customizations – Canada Life
When it comes to flexibility and personalized protection, Canada Life offers some of the most customizable whole life insurance plans in Canada. While their base premiums are competitive, it’s their wide selection of optional riders and policy features that make them the top choice for people who want tailored coverage without overpaying.
Some of the key customization options from Canada Life include:
- Accidental Death Benefit rider: Boosts the payout if death results from an accident
- Waiver of Premium: Keeps your policy active by waiving payments if you become disabled
- Children’s term rider: Adds coverage for your children with the option to convert later without a medical exam
- Guaranteed Insurability Option (GIO): Lets you increase your coverage later in life without new underwriting
- Additional Deposit Option (ADO): Allows lump-sum contributions that grow your cash value and death benefit faster
Additionally, Canada Life’s participating whole life plans let you choose how to use dividends: reinvest them into the policy, reduce premiums, or take them in cash.
Cheapest whole life insurance for overall premiums – Manulife
When comparing whole life insurance providers in Canada, Manulife consistently ranks among the most affordable across multiple ages and coverage levels. Whether you’re a young adult starting a financial plan or a 50-something preparing for retirement, Manulife offers some of the lowest base premiums for guaranteed lifetime coverage. The cost-effectiveness extends across both participating and non-participating policy types.
Manulife’s affordability stands out particularly in policies offering:
- Level, guaranteed premiums for life
- Multiple payment options (life-pay, 10-pay, 20-pay, pay to 90)
- Competitive pricing for both single and joint coverage
- Access to Vitality programs that reward healthy habits and may reduce long-term costs
Manulife Par and Manulife Par with Vitality Plus products do include premium savings potential and strong cash value growth. Manulife’s overall pricing strategy, combined with stability and brand reputation, makes it one of the best whole life options in Canada today.
Cost of whole life insurance for Manulife
| Age | Male | Female |
| 20 years | $31.95/month | $22.50/month |
| 25 years | $32.40/month | $22.95/month |
| 30 years | $32.40/month | $23.40/month |
| 35 years | $34.65/month | $26.10/month |
| 40 years | $49.05/month | $36.90/month |
| 45 years | $77.40/month | $55.80/month |
| 50 years | $131.40/month | $91.80/month |
| 55 years | $242.10/month | $166.95/month |
| 60 years | $433.35/month | $308.70/month |
| 65 years | $718.20/month | $598.60/month |
*Illustrated cost of a non-participating whole life insurance policy for an individual of various age ranges seeking $100,000 in coverage
Cheapest whole life insurance for participating whole life policies – Equitable Life
When it comes to participating whole life insurance, where policies build cash value and pay annual dividends, Equitable Life of Canada stands out as the most cost-effective choice in 2025.
Equitable Life offers two flagship participating products under the Equimax line: Equimax Estate Builder, which focuses on maximizing long-term death benefit and estate value, and Equimax Wealth Accumulator focuses on early cash value growth and flexibility
Equitable Life is particularly attractive due to the combination of affordable premiums and strong performance:
- Dividend Scale Interest Rate (DSIR) of 6.40% as of 2024—one of the highest in Canada
- Historically consistent dividend payouts, even in low-interest environments
- Ideal for both estate planning and long-term cash accumulation
- Available in 10-pay, 20-pay, and life-pay structures
Equitable’s participating policies consistently outperform others in cash value growth per premium dollar, offering clients a mix of affordability and long-term cash value growth.
Cash value growth of an Equimax Estate Builder plan
| Age | Annual dividend | Cash value | Death benefit |
| 40 years | $1,846 | $7,562 | $394,916 |
| 50 years | $7,069 | $184,187 | $531,571 |
| 60 years | $14,099 | $389,805 | $782,338 |
| 70 years | $24,762 | $715,682 | $1,120,579 |
| 80 years | $44,515 | $1,243,427 | $1,609,758 |
| 90 years | $69,389 | $2,020,478 | $2,317,661 |
| 100 years | $76,830 | $3,170,490 | $3,170,490 |
*Projected cash value for a 35-year-old, non-smoker, male opting for a 20-Pay with a $10,000 annual premium
Cheapest whole life insurance for high-net-worth individuals – Sun Life
Sun Life stands out as the top choice for high-net-worth individuals looking for substantial and flexible whole life coverage. With minimum coverage starting at $250,000, their policies are well-suited for clients seeking to preserve wealth, plan their estates, or leave a financial legacy.
Sun Life offers both participating and non-participating whole life insurance options. The participating plans provide long-term value through annual dividends and strong cash value growth, while the non-participating options offer guaranteed premiums and predictable benefits.
High-net-worth clients can choose from premium payment options like 10-pay, 20-pay, or life-pay, and further tailor the policy with riders and additional deposit options
Cheapest whole life insurance for individuals with pre-existing conditions – Canada Protection Plan
Canada Protection Plan (CPP) is one of the top choices in Canada for individuals seeking whole life insurance without undergoing a medical exam. Their simplified application process makes coverage more accessible, especially for those with pre-existing conditions or health concerns.
Applicants can choose from coverage amounts ranging from $10,000 to $1,000,000, depending on eligibility and plan type. Some policies come with immediate full death benefits, while others include a two-year waiting period before full coverage kicks in.
To further customize the policy, CPP also offers optional riders such as the Accidental Death Benefit, Child Term Benefit, and Hospital Cash Benefit, allowing policyholders to tailor their protection to suit their family’s specific needs.
Cost of whole life insurance for the Canada Protection Plan
| Age | Male (Non-Smoker) | Female (Non-Smoker) |
| 20 | $100/month | $90/month |
| 30 | $140/month | $130/month |
| 35 | $150/month | $145/month |
| 40 | $250/month | $220/month |
| 45 | $275/month | $263/month |
| 50 | $310/month | $287/month |
| 55 | $385/month | $365/month |
| 60 | $600/month | $550/month |
*Illustrated cost for individuals of varied age ranges seeking $200,000 in coverage with a Life Pay option
Can I use whole life insurance as a tax-free investment in Canada?
Yes, you can use whole life insurance as a tax-efficient investment in Canada, especially with participating policies. These policies build cash value over time, which grows tax-deferred. You can access this cash through policy loans or withdrawals, often without triggering immediate taxes.
Additionally, the death benefit is paid out tax-free to your beneficiaries. Participating whole life insurance also offers dividends, which can be reinvested to increase your policy’s value or reduce premiums. This makes it a popular strategy for high-net-worth individuals looking to grow and transfer wealth efficiently.
Can I get whole life insurance in Canada without a medical exam?
Yes, you can get whole life insurance in Canada without a medical exam. Several Canadian insurers offer these types of policies, including Canada Protection Plan, Assumption Life, Foresters Financial, and iA Financial Group.
These policies are commonly known as “no-medical” or “simplified issue” whole life insurance, and they are designed for people who:
- Prefer a quick and easy application process
- Have pre-existing medical conditions
- Want to avoid medical tests like bloodwork or physicals
Can I convert my term life policy into whole life in Canada?
Yes, you can convert many term life insurance policies into whole life insurance in Canada, often without needing a medical exam. The term conversion option allows you to switch to permanent coverage based on your original health status, even if your health has changed since you first bought the policy.
Most insurers offer the term conversion feature up to a certain age, usually between 65 and 70. The new whole life premiums are calculated based on your age at the time of conversion, not your age when you purchased the term policy.
Some insurers also allow partial conversions, meaning you can convert only a portion of your existing term life insurance coverage into a whole life insurance policy.
Can I use whole life insurance for retirement income in Canada?
Yes, you can use whole life insurance to supplement retirement income in Canada, especially through participating policies with strong cash value growth. Over time, the policy builds tax-deferred cash value, which you can access through policy loans or withdrawals.
These funds can provide a flexible, tax-efficient source of income during retirement. Since policy loans don’t trigger immediate taxation and don’t require repayment on a fixed schedule, they offer financial flexibility.
However, any unpaid loan balances reduce your death benefit. It’s important to structure the policy properly with the help of a licensed advisor to ensure it fits your long-term retirement and estate planning goals.
How to choose the right whole life insurance company in Canada?
When choosing a whole life insurance company in Canada, it’s important to look beyond just the monthly premium. Whole life insurance is a long-term financial product, and your provider should offer strong performance, stability, and value over decades.
- Look for value: Focus on long-term value, including cash value growth, flexibility, and total returns, not just the cheapest premium
- Check dividend history (for participating policies): A reliable whole life insurance dividend track record shows how consistently the company rewards policyholders and signals financial health
- Understand cash value growth and access: Find out how quickly your policy accumulates cash value, and whether you can access it easily through loans or withdrawals
- Review financial strength and claims record: Choose a company with strong credit ratings (e.g., A.M. Best, DBRS) and a solid reputation for paying claims promptly
- Evaluate product customization: Consider whether the insurer allows riders, premium payment options (e.g., 10-pay, 20-pay), or partial conversions if your needs change
- Consider customer support: Good customer service, online access to policy information, and responsive claims support are essential for long-term satisfaction
Is whole life insurance worth it in Canada in 2025?
Whether whole life insurance is worth it in Canada in 2025 depends on your financial goals and personal situation. With rising dividend scale interest rates and stronger insurance options from top insurers like Equitable Life and Canada Life, whole life insurance continues to be a solid choice for high-net-worth individuals and families seeking permanent coverage.
However, for those with limited budgets or short-term needs, term life insurance might offer more flexibility at a lower cost. You can seek the help of our expert advisors at PolicyAdvisor to get customized whole life insurance quotes from 30+ top providers in Canada.
Our experts can help you get customized quotes based on your unique needs through our whole life insurance calculator, along with additional riders to help you find maximum coverage at the most affordable prices. Schedule a call with us today!
Frequently Asked Questions
Can I pause or skip premium payments on my whole life insurance policy?
Yes, some whole life policies allow for flexible premium arrangements after enough cash value has built up. Once you’ve accumulated sufficient cash value, you may use it to cover future premiums through automatic premium loans or paid-up additions.
However, this depends on your policy type and provider. Skipping payments without planning can reduce your cash value or cause the policy to lapse, so it’s important to review the policy terms or consult your advisor before doing so.
Will my whole life insurance premiums ever increase?
No, whole life insurance comes with guaranteed level premiums, meaning they stay the same throughout the life of the policy. This is one of the key benefits of whole life insurance compared to term policies.
However, if you’ve added certain riders or opted into non-guaranteed elements, like paid-up additions through dividends, your premiums may change based on those selections.
Can I use my whole life policy to fund a child’s education?
Yes, many Canadians use whole life insurance as an alternative or complement to RESPs. Participating whole life policies build cash value over time, which can be accessed via loans or withdrawals to help fund major expenses like a child’s post-secondary education. While not designed solely for education savings, the tax-deferred growth and loan access make it a flexible financial tool.
What happens if I surrender my whole life insurance policy?
If you surrender your whole life policy, your coverage ends permanently, and the insurer pays you the cash surrender value, the accumulated cash value minus any surrender charges or outstanding loans.
This can be a useful option if you no longer need the coverage or want to access funds. However, surrendering early can result in low payouts or tax consequences, especially if the policy is still young.
Can I have more than one whole life insurance policy in Canada?
Yes, you can own multiple whole life insurance policies, even from different companies. People often layer policies to meet specific goals, like one for estate planning and another for cash value accumulation. Insurers will assess your total insurance needs and financial situation to determine if multiple policies are justified.
However, managing several policies can be more complex and costly. If your needs grow, a better option may be to increase coverage or add riders to an existing plan.
In 2025, Canada’s most affordable whole life insurance providers will cater to different needs. Foresters Financial offers the lowest rates for smokers, with added savings through its Quit Smoking Incentive. iA Financial is ideal for seniors, providing flexible underwriting and strong guaranteed cash values. Manulife leads in overall affordability across age groups, with options like Vitality for added savings. Equitable Life is best for participating policies, featuring a top-tier 6.4% DSIR. Canada Life excels in policy customizations, while Sun Life suits high-net-worth clients. Canada Protection Plan offers no-medical coverage for those with health concerns.
LIMRA. 2024. “Record Year for Canadian Life Insurance Sales in 2023.” LIMRA, February 28, 2024.
