Find the best whole life insurance quotes in Canada
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What is whole life insurance?
Matt Hands, VP, Insurance
Whole life is a type of permanent life insurance, meaning it lasts for the duration of your life – as long as you continue paying your premiums on time. When you pass away, your beneficiaries will receive a death benefit from your insurer. Because the policy is virtually guaranteed to pay out eventually, whole life insurance premiums are more expensive than the premiums for term life insurance. Aside from the payout, there are other advantages, including the accumulation of a cash value within your policy.
Whole life insurance is a popular type of coverage in Canada and is considered the ‘standard’ permanent life insurance plan. These plans never expire, so it's a great option for people who want to maintain their life insurance coverage during their old age.
Whether or not whole life insurance is the right coverage option for you will depend on your personal coverage needs and overall preferences. Find out more about why and how a whole life policy might be right for you so you can confidently compare your own personalized life insurance quotes once you're ready.
Is whole life insurance worth it?
The cost of a whole life insurance policy is generally much more expensive than that of a term life policy. While most people won't need coverage for their entire lifetime, a whole life plan can be worth it, depending on the needs of your specific situation. Here are examples of when permanent life insurance coverage could be a good idea.
Trust fund
If you want to build a trust fund for future generations, a whole life policy can be just what you need.
Estate planning
A whole life policy is one tax-advantaged way to leave your beneficiaries with a large sum of money.
Business operations
As a business co-owner, permanent life insurance can provide the funds needed for a buyout upon death.
The benefits of whole life insurance
Aside from covering you for your entire life, whole life insurance has a number of other key features that set it apart from other products – here are three advantages to choosing a whole life policy.
Compare the best whole life insurance quotes in Canada
In just a few steps, you can request customized permanent life insurance quotes from Canada's top life insurers – it's easy to find your best rate today.
How much does whole life insurance cost?
While the cost of whole life insurance in Canada will differ depending on the policyholder's individualized profile, here are a few sample quotes we pulled in April 2025. For a more thorough analysis of pricing, read our page about how much life insurance costs in Canada.
- $205/mo
Whole life policy with $250,000 coverage
for a 40-year-old, non-smoking male
- $221/mo
Whole life policy with $500,000 coverage
for a 35-year-old, non-smoking female
- $1,244/mo
Whole life policy with $1,000,000 coverage
for a 50-year-old, non-smoking male
How are whole life insurance policies calculated?
Generally speaking, the more risk you bring as a policyholder, the higher the cost of whole life insurance. Here, we cover a few main factors insurance companies look at to help determine your rate.
Age
The older you are, the more expensive your whole life premiums will be. But keep in mind that locking in a low rate early can also mean you're making more payments during your lifetime.
Gender
When it comes to buying life insurance, males generally pay higher rates. This is due to the statistical risk factors of life expectancy.
Health
Life insurance companies like to see low-risk policyholders, so pre-existing conditions, smoking, substance abuse, and a complicated family medical history will lead to higher whole life insurance policy rates.
Payment period
Not all whole life policies require premiums to be paid until death. If you choose to accelerate your payment plan (e.g. pay off in 10 years), expect your rate to be much higher.
Coverage amount
While the death benefit on a whole policy isn't fixed, selecting a higher face value or a higher guaranteed return rate will lead to more expensive premiums.
Dividends
Participating policies pay out dividends – so insurance rates are typically higher for these plans. But dividends can also be credited as part of your premium, lowering your out-of-pocket cost.
Whole life policy vs. term life insurance
The overwhelming decision for many Canadians when shopping for life insurance is choosing between term life and whole life coverage. Here, we cover the main differences between the two, so you can choose the one that best suits your needs.
|
Feature |
Term life insurance |
Whole life insurance |
|---|---|---|
|
Coverage period |
Term life insurance only covers you during the fixed term you choose – be it five years, 10 years, or 30. |
Whole life insurance covers you for an entire lifetime – from the policy start date until the day you pass. |
|
Coverage needs |
Term policies are well-suited if you only need financial protection for a specific period (e.g. mortgage debt). |
Whole life insurance is recommended if you have a lifetime need for coverage (e.g. estate planning). |
|
Death benefit |
Your death benefit is the set amount purchased – it'll also only be paid out if you pass away during the term. |
Your death benefit is usually also fixed to a certain amount, but it can change in some cases – it's also guaranteed to pay out after you pass. |
|
Cash value |
Term life insurance policies don't accumulate in cash value, so you won't be growing a reserve. |
Whole life plans can accumulate in cash value, so you can access funds during your lifetime. |
|
Withdrawals |
You can't withdraw from a term life insurance policy during your lifetime. |
With whole life insurance, you're generally able to withdraw or borrow against your cash value reserve. |
|
Cost |
Term life is generally much more affordable than whole life – that's because you might not need a payout. |
Whole life insurance policies are eventually paid out, so expect to pay much more for this coverage. |
*To learn more, check out our blog on the difference between whole life insurance and term life.
Whole life insurance vs. universal life insurance
There are three main differences between whole and universal life insurance policies: premiums, benefits, and investments. Click on each feature below to learn what differentiates these two types of life policies.
*To learn more, check out our blog on the difference between whole life insurance and universal life.
Additional whole life insurance resources
While a whole life policy can seem like a daunting purchase, it doesn't have to be – taking the time to learn all about the product will help you understand the ins and outs of your coverage. For more resources on whole life insurance, be sure to read our blog posts below.