Best permanent life insurance in 2024: Get free quotes!
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Permanent life insurance, often referred to interchangeably as whole life insurance, is a type of insurance policy that provides guaranteed lifetime coverage as long as premium payments are made.
Permanent life insurance policies may include a savings and investment component alongside the core death benefit coverage. This makes permanent life insurance a valuable tool for financial planning.
But how does permanent life insurance work? What are its pros and cons? What are the best options? Read our guide to find all this and more. Use our free comparator to compare the best permanent life insurance Canada plans right here and get free personalized quotes in no time.
Best permanent life insurance Canada plans
- iA Groupe financier
- RBC Insurance
- Canada Life Insurance
- Sun Life Insurance
- BMO Insurance
- Equitable Life of Canada Insurance
- Ivari Insurance
What is permanent life insurance?
A permanent life insurance policy is a form of life insurance that guarantees coverage for your entire life. Once you have signed up for a permanent life insurance policy, it will remain in force as long as your premiums are paid without any new underwriting, medical questions or renewals.
Permanent life insurance by definition refers to the fact that it does not expire – it covers you for your whole life. It should be noted, however, that whole life insurance is a sub-class of permanent life insurance along with universal life insurance. Additionally, permanent life insurance often has a cash value that increases and investment element, unlike term life insurance.
How does permanent life insurance work?
Permanent life insurance works like most other life insurance policies: by providing your loved ones with a payout should you pass away. You contribute regular premiums In exchange for a death benefit for your beneficiaries when you pass.
The difference with permanent life insurance policies, however, is that the coverage lasts for your entire life and they can come with a range of additional benefits. For example, you can choose a permanent life insurance policy with an investment aspect. We'll look at what makes these policies so useful below.
Expert advice
Permanent life insurance works as an effective estate planning tool. Your investment funds can be held in tax-advantaged accounts and the death benefit will be made to your beneficiaries tax-free.
What are the advantages and disadvantages of permanent life insurance?
There are several permanent life insurance advantages and disadvantages. Each type can be a good match for different individuals depending on their needs. Since permanent life insurance can be complex and expensive, it is best suited for older couples and families with shared finances.
It is also a good solution for long-term planning and older policy buyers who want to guarantee an inheritance for their loved ones. To help you understand the benefits of permanent life insurance we’ve listed the pros and cons of permanent life insurance below.
Pros of permanent life insurance
- Lifetime coverage
- Guaranteed premiums
- Premiums can be flexible
- Tax-advantaged investment element option
- Dividends and increase in cash-value option
- Loan against cash-value policies
Cons of permanent life insurance
- More expensive than other types of life insurance
- Cash value can grow very slowly with modest returns
- Complex products with complex fee structures
- Risk of not affording the premiums forcing termination of the policy
- Some buyers may prefer to separate life insurance from private investments
What is the cost of permanent life insurance?
The cost of permanent life insurance varies significantly between insurance providers, the type of permanent life insurance policy requested (whole life vs universal life), the amount of death benefit, and the applicant’s personal information.
Due to their vast differences, permanent life insurance rates usually have to be requested from life insurance companies directly, who will put you in touch with an advisor to discuss your needs.
However, it is sometimes possible to get permanent life insurance costs from some insurance providers without the need to speak to an advisor. This is usually for permanent whole life insurance plans as they aren’t as complex.
The table below shows the monthly cost of BMO’s Term 100 permanent life insurance policy for healthy, non-smoking males and females with a $250,000 death benefit.
| Age | Female | Male |
|---|---|---|
| 25 | $96.79 | $109.29 |
| 30 | $117.00 | $130.96 |
| 35 | $142.21 | $163.46 |
| 40 | $175.75 | $204.50 |
| 45 | $217.83 | $257.62 |
| 50 | $272.42 | $313.46 |
| 55 | $346.79 | $412.21 |
| 60 | $466.79 | $543.46 |
| 65 | $644.08 | $719.50 |
It is important to get personalized quotes and insurance plans are highly based on individual health, age, and financial situations. You can use our comparator below to get free quotes from the best permanent life insurance plans in Canada in no time.
Compare the best life insurance companies
What types of permanent life insurance are there?
Permanent life insurance is often broken down into two sub-classes of long-term life insurance: whole life insurance and universal life insurance. Both types will offer lifelong coverage while some can provide cash value and investment options.
Due to these differences, a permanent life insurance policy can be either straightforward or complex. Whole life insurance is considered straightforward since your premiums, coverage, and even guaranteed cash value can stay the same.
Universal life insurance, on the other hand, offers flexibility when it comes to several features. A full breakdown of the features of the two types of permanent life insurance are listed below.
| Insurance type | Whole Life Insurance | Universal Life Insurance |
|---|---|---|
| Guaranteed lifetime coverage | ||
| Guaranteed death benefit | ||
| Flexible death benefit | ||
| Guaranteed fixed premiums | ||
| Premium flexibility | ||
| Guaranteed cash value growth | ||
| Tax-advantaged investment option | ||
| Ability to borrow against the policy |
Permanent non-participating vs permanent participating life insurance
Permanent whole life insurance can further be broken down into permanent non-participating and permanent participating life insurance. In short, permanent non-participating life insurance is the simpler version of the two and the cheapest. It offers guaranteed lifetime coverage without any other financial benefit.
Permanent participating life insurance also has guaranteed lifetime coverage but offers a potential cash value which comes in the form of dividends from the investment of premiums.
Unlike universal life insurance, however, a policyholder does not manage the investments themselves. Instead, the insurance provider manages the investment of your premiums along with the premiums of other policyholders, and if the investments do well you will get a share of the earnings as dividends.
Depending on the permanent participating life insurance policy, the dividends can be:
- Guaranteed
- Used to purchase paid-up insurance and increase the death benefit
- Received as cash
- Accumulated to earn further returns
- Used to reduce the premium or fees you pay
What is term vs permanent life insurance?
The difference between term and permanent life insurance is that term life insurance lasts for a specific number of years, while permanent life insurance lasts your entire life, subject to all premiums being paid.
The difference between permanent vs term life insurance can, therefore, be likened to renting or buying property. With term life insurance, your policy will only last as long as your contract whereas you own your permanent life insurance policy for life.
Another important aspect of term life insurance vs permanent life insurance is that when the term insurance length ends, the policy simply ceases to exist and the policyholder receives nothing. However, with permanent life insurance, the policyholder can opt to borrow against the policy’s cash value or to surrender the policy completely and receive the cash value as a payout.
All these extra benefits do come at a cost and permanent life insurance is often considerably more expensive than term life. So, when considering term or permanent life insurance you should always ask if permanent life insurance is worth it to you.
Is permanent life insurance a good investment?
Permanent life insurance is worth it for anybody who has a stable income and needs lifetime financial protection. While it costs more, permanent life insurance comes with the peace of mind of knowing that you will have a guaranteed death benefit at a fixed cost, regardless of any life changes.
In addition, permanent life insurance is a good investment for individuals who want to combine their family protection with retirement and estate planning. It offers a one-stop solution and simplifies future planning.
In Canada, many reliable life insurance providers offer both participating permanent life insurance and universal insurance with tax-advantaged accounts that can be used as a financial planning solution. You can explore them right here using our free comparator below and get free quotes.
Compare the best life insurance companies
Who needs permanent life insurance?
Permanent life insurance is suitable for anyone with a stable career, a growing family, and the need to plan for their long-term future. Permanent life insurance is also perfect for those who want to combine their life insurance with retirement and estate planning so that they can invest through their life insurance or let their premiums build up a cash value over time.
With the many life insurance options available, it is often difficult to decide between term vs permanent life insurance and then which type of permanent life insurance meets your needs. The checklist below shows you which life insurance policy is best depending on a variety of life insurance needs.
| Insurance Type | Whole Life Insurance | Universal Life Insurance | Term Life Insurance |
|---|---|---|---|
| Guaranteed lifetime protection | |||
| Cheapest life insurance available | |||
| Short term coverage | |||
| Guaranteed premiums | |||
| Guaranteed death benefit | |||
| Flexible premiums | |||
| Flexible death benefit | |||
| Ability to loan against policy surrender for cash value | |||
| Guaranteed cash value growth | |||
| Tax-advantaged investment option |
How do I get a permanent life insurance quote?
Permanent life insurance quotes are usually requested directly from insurance providers or licensed insurance agents. This is because permanent life insurance quotes tend to be more complex when compared to term life insurance and contain significantly more variables that affect your coverage needs and premiums.
Advisors are usually also needed to discuss the contract of these policies in-depth to ensure that the buyer fully understands the policy. However, some insurance providers do offer online permanent life insurance quotes for their simpler Term-to-100 whole-life policies. So if you are looking for permanent non-participating life insurance it is possible to get estimated quotes directly through an insurance provider's website.
Before speaking to multiple life insurance providers and requesting quotes, try comparing the best permanent life insurance policies. See 20 of Canada’s top life insurance providers using HelloSafe’s comparison tool.
What are the best permanent life insurance Canada plans?
The best permanent life insurance companies in Canada are companies with significant experience in life insurance and financial services. They all have a strong AM Best rating which indicates that they are financially capable of withstanding economic headwinds.
Expert advice
Don't forget to compare permanent life insurance options at the top of this page for quotes from these and other leading providers.
Here are some of the best permanent life insurance plans.
| Insurance Provider | Product Name | Other Features | Action |
|---|---|---|---|
| iA Groupe financier | Genesis |
| Get a quote from iA Groupe |
| RBC Insurance | Whole Life Insurance |
| Get a quote from RBC |
| Canada Life | Whole life insurance |
| Get a quote from Canada Life |
| Sun Life | SunUniversalLife II |
| Get a quote from Sun Life |
| BMO Insurance | Universal Life Insurance |
| Get a quote from BMO |
| Equitable life of Canada | Equation Generation IV |
| Get a quote from Equitable Life |
| ivari | Ivari life insurance |
| Get a quote from Ivari |
Use our comparator below to explore the above plans in detail and more from Canada's best life insurance companies, and get free personalized quotes in seconds.
Compare the best life insurance companies
How do you convert term life insurance to permanent life insurance?
Converting term life insurance to permanent life insurance is generally a straightforward process as long as your term life policy is with a provider that allows you to upgrade. The insurance provider with whom you have your term life insurance also needs to have permanent life insurance policies available to customers to upgrade to one.
If your insurance provider does offer permanent life insurance, you can most likely upgrade your term life insurance policy without the need to answer medical questions or complete a new medical exam. The conversion of the policy will also likely be restricted to age, as many providers only allow upgrades before an individual's 70th birthday.
How much permanent life insurance do I need?
To determine the appropriate amount of permanent life insurance, assess your financial responsibilities, including outstanding debts, mortgage, education costs, and anticipated future expenses. Factor in your family's lifestyle and income replacement needs.
Consulting with a financial advisor can help tailor the coverage to your unique circumstances, ensuring your loved ones are financially secure in the event of your passing. You can also calculate yourself in quick and easy steps using our HelloSafe permanent life insurance calculator.
Is permanent life insurance bad for me?
The answer is, that it isn’t. Permanent life insurance can get a bad reputation because it is more expensive than term life insurance. Additionally, agents who sell them are sometimes negatively incentivized by their large commissions. But the policies themselves offer some fantastic coverage.
Whereas term life insurance is a great life policy for a lot of people because it is cheap (at least when you are young), permanent life insurance is a great financial planning tool for anyone looking to safeguard the financial future for the long term.
If you’re still confused about whether permanent life insurance is the right solution for you, try comparing all the life insurance policies from Canada’s leading life insurers using our free comparator at the top of this page.
