Best Permanent Life Insurance Canada 2025 (Updated)
- Lifetime protection
- Tax-advantaged savings growth options
- Reduced paid-up insurance option
- Lifetime protection
- Tax-advantaged savings growth options
- Reduced paid-up insurance option
SunSpectrum Universal Life II from Sun Life offers permanent life insurance coverage with a strong investment component, making it a compelling option for individuals looking to combine lifelong protection with long-term wealth accumulation. Available from birth to age 80, this policy provides flexible investment account options allowing for tax-deferred savings growth. The product includes a reduced paid-up option, which lets policyholders stop paying premiums in the future while maintaining some level of coverage. It also supports a fully digital experience with an online application process and digital policy delivery. A range of optional riders further enhances customization, including critical illness or children's benefits. However, the policy comes with high initial premiums, which may not be suitable for cost-sensitive applicants or those with shorter-term protection goals.
Ideal profile: This solution is well-suited for high-net-worth individuals, business owners, and long-term planners seeking to merge estate planning, life insurance, and tax-efficient investment growth in one comprehensive policy.
- Lifetime insurance coverage with strong investment options for tax-advantaged growth
- Digital-friendly: online application and e-policy delivery
- Wide range of riders available for enhanced protection
- Reduced paid-up insurance option allows flexibility later in life
- Suitable from age 0 to 80, appealing to both young families and retirees
- Higher premiums compared to standard permanent or term life products
- May be overly complex for individuals not interested in managing investment-linked insurance
- Possibility to modify the contract at any time
- Tax-sheltered savings option that grows
- Guarantees for children included
- Possibility to modify the contract at any time
- Tax-sheltered savings option that grows
- Guarantees for children included
Permanent Life Insurance from Beneva provides lifetime coverage with a strong focus on flexibility and stability, making it a highly versatile solution for long-term financial security. Coverage is available from birth up to 85 years old, with a maximum death benefit of up to $10 million, addressing both personal and estate planning needs. Premiums are fixed, ensuring long-term cost predictability, and the policy offers a built-in cash value accumulation feature that can be leveraged later as a tax-sheltered savings or even as a supplemental retirement income stream. Policyholders have the flexibility to modify their contracts at any time, allowing adjustments based on changing financial circumstances. Additionally, the product includes guarantees for children's coverage, enhancing its value for families seeking multi-generational protection. While it presents robust benefits, users should carefully evaluate surrender conditions and potential impacts on cash value when accessing funds, as well as compare growth projections to market alternatives for investment efficiency.
Ideal profile: This policy is particularly suitable for individuals or families prioritizing lifelong coverage with cash value growth potential, professionals seeking stable premiums for estate planning, and parents interested in securing coverage for their children within the same contract. It also fits well for retirees who may want to supplement retirement income with accumulated policy cash value.
- Possibility to modify the contract at any time to adapt to evolving needs
- Fixed premiums providing predictable long-term financial planning
- Tax-sheltered savings option growing within the policy for added liquidity
- Included guarantees for children's coverage, enhancing family protection
- Surrendering cash value may reduce death benefit and future growth potential
- Returns on cash value accumulation could be modest compared to other investment vehicles
- Managing policy modifications requires active engagement to optimize benefits
- Lifetime protection
- Tax-advantaged savings growth options
- Range of options for death benefit, insurance cost, and investments
- Lifetime protection
- Tax-advantaged savings growth options
- Range of options for death benefit, insurance cost, and investments
SunUniversalLife II from Sun Life offers a highly customizable permanent life insurance solution, blending lifelong protection with flexible investment opportunities. Available to applicants aged 20 to 60, this policy can provide coverage up to $25 million, making it ideal for both personal financial protection and advanced estate planning. Policyholders benefit from flexible premiums and the ability to adjust the death benefit, insurance costs, and investment allocations over time. The policy’s growth is tax-advantaged, with gains not impacting social security benefits, a strong advantage for high-net-worth individuals planning for retirement income or wealth transfer. However, it’s important to note that while there is strong potential for tax-free growth, returns are capped, and there are no guarantees regarding premium stability, requiring careful financial planning and ongoing monitoring. Its broad array of additional coverage options and the ability to fine-tune benefits and savings strategies make it an attractive tool for sophisticated, evolving financial strategies.
Ideal profile: This product is particularly fitting for affluent individuals or business owners seeking lifetime protection combined with the ability to grow savings in a tax-efficient manner, clients needing dynamic policies that adapt to changing life circumstances, and those focused on estate maximization or supplementing retirement income without impacting government benefits.
- Flexibility in adjusting death benefit, insurance costs, and investments over time
- Tax-free growth and capital gains advantages within the policy
- No impact on social security benefits when leveraging cash value
- High coverage limit up to $25 million suitable for significant estate planning
- Returns on investment components are capped, limiting growth potential
- No guarantees on premium amounts over the life of the policy
- Requires active management to optimize benefits and ensure alignment with financial goals
- Benefit in case of disability and tax-free
- Lifetime protection and tax-advantaged investments
- Option to guarantee a child's or grandchild's insurability
- Benefit in case of disability and tax-free
- Lifetime protection and tax-advantaged investments
- Option to guarantee a child's or grandchild's insurability
RBC Whole Life Insurance offers lifelong protection with strong guarantees, making it a secure and structured solution for individuals seeking predictable long-term financial planning. Available from birth up to 80 years old, with coverage up to $10 million, this product includes guaranteed cash values, the potential for annual dividends, and multiple premium payment options (10, 20 years, or for life). Policyholders benefit from the ability to add multiple riders, manage their policies digitally through online accounts, and access tax-advantaged investment growth within the policy. The dividends, while not guaranteed, can enhance the cash value over time, offering a potential source of accessible funds or increased death benefits. However, eligibility is restricted to Canadian permanent residents, slightly narrowing its accessibility. Overall, RBC’s Whole Life product stands out as a cost-effective and digitally friendly choice for clients valuing stability, with the added bonus of estate planning advantages and protection for future generations through insurability guarantees for children or grandchildren.
Ideal profile: This policy is ideal for Canadian permanent residents looking for a stable, long-term insurance solution, individuals focused on wealth preservation and estate planning, and those valuing both guaranteed growth and the potential for additional dividends over time. It is also suitable for tech-savvy clients who appreciate managing their insurance online.
- Guaranteed lifetime coverage with potential for dividend growth
- Flexible premium structures with 10, 20-year, or lifetime payment options
- Online account access and digital management ease
- Multiple riders available for customization
- Option to guarantee a child’s or grandchild’s insurability
- Only available to Canadian permanent residents
- Dividends are not guaranteed and can vary annually
- Less investment flexibility compared to universal life insurance policies
- Option of level costs or annually renewable term costs
- Three death benefit options
- Non-taxable disability protection
- Option of level costs or annually renewable term costs
- Three death benefit options
- Non-taxable disability protection
Genesis by iA Financial Group is a highly flexible insurance solution designed to provide not just life coverage but also significant financial planning tools, including tax-free estate maximization, mortgage protection, business value safeguarding, and access to liquidity for retirement or unforeseen needs. Available from birth up to 85 years old, Genesis allows coverage up to $10 million and offers a variety of premium options (10, 15, 20 years, or coverage up to 100 years). It stands out with guaranteed insurance costs, an accessible surrender value, and built-in disability protection, providing an additional layer of financial resilience. Policyholders can choose between level cost structures or annually renewable terms and select among three types of death benefit options, tailoring the plan to suit evolving goals. However, the lack of an electronic policy option might seem a bit outdated, particularly for tech-savvy clients who expect full online service capabilities. Despite that, Genesis remains a versatile, solid product, suitable for both personal and business uses where flexibility, guarantees, and liquidity matter.
Ideal profile: This product is a good fit for individuals seeking tax-efficient estate transfer, entrepreneurs wanting to protect business value, or anyone needing a flexible plan that can adapt to major life stages while also building liquidity. It’s particularly suited for conservative investors valuing predictable insurance costs and guaranteed benefits over digital convenience.
- Guaranteed insurance costs for long-term financial stability
- Availability of a surrender value offering liquidity when needed
- Disability benefits included, enhancing personal financial security
- Wide flexibility with premium payments and death benefit structures
- Access up to 85 years old, accommodating a broader demographic
- No fully digital or electronic policy management
- Potentially less attractive for younger, digitally oriented clients
- Annual renewable term costs could become more expensive over time if not carefully managed
Permanent life insurance in Canada offers lifelong coverage, providing financial security for your loved ones while building cash value over time. Unlike term life insurance, which covers you for a fixed period, permanent policies ensure a guaranteed payout regardless of when you pass away.
This guide explores all about permanent life insurance: how it works, what it costs, the different types, and the best policies. You’ll also learn how permanent life insurance compares to term life, helping you decide which option aligns with your financial goals and long-term needs.
Use our free comparator to compare the best permanent life insurance in Canada and get free personalized quotes in no time.
Permanent Life Insurance Canada: Key Points
- Permanent life insurance provides lifelong coverage, ensuring your family’s financial security.
- Builds cash value over time, which can be accessed for loans or withdrawals.
- Premiums remain fixed, offering long-term financial predictability.
- Includes types like whole life, universal life, and term-to-100.
- Offers a tax-free payout to your beneficiaries upon your passing.
- Can be used for estate planning, inheritance, or covering final expenses.
- More expensive than term life insurance but includes savings benefits.
- Ideal for those seeking long-term financial protection and investment growth.
What is permanent life insurance?
Permanent life insurance is a type of policy that provides lifelong coverage as long as you pay your premiums. Unlike term life insurance, it doesn’t expire after a fixed period, ensuring that your beneficiaries receive a guaranteed tax-free payout no matter when you pass away.
It also includes a cash value component that grows over time on a tax-deferred basis. This cash value can be used for loans, withdrawals, or even to pay your premiums later.
Permanent life insurance is ideal for those looking to leave a legacy, cover estate taxes, or have a financial safety net they can access during their lifetime. It offers both protection and a savings element, making it a versatile choice for long-term planning.
For example
Imagine Lisa, a 40-year-old in Ontario. She purchases a permanent life insurance policy with $500,000 coverage. Over the years, Lisa’s policy builds cash value. At 60, she uses a portion of this to help fund her daughter’s wedding, while still keeping the death benefit intact for her family. When Lisa eventually passes, her loved ones receive the tax-free payout to cover expenses and secure their financial future.
How does permanent life insurance work?
Permanent life insurance works by combining lifelong protection with a savings component. When you purchase a policy, part of your premiums funds the death benefit, ensuring your beneficiaries receive a tax-free payout whenever you pass away. The other portion goes toward building cash value, which grows over time on a tax-deferred basis.
Understanding permanent life insurance
- Lifelong Coverage: The policy ensures protection for your entire life, as long as premiums are paid.
- Cash Value Growth: A portion of your premiums accumulates as cash value, which grows tax-deferred and can be accessed during your lifetime.
- Fixed Premiums: Premiums remain consistent throughout the policy, providing financial predictability.
- Flexibility: The cash value can be borrowed against, withdrawn, or used to pay future premiums.
- Estate Planning Benefits: Permanent life policies can cover estate taxes, ensuring your loved ones inherit without financial burdens.
Example of a permanent life insurance policy
For example, consider Emma, a 40-year-old mother in Canada, who buys a permanent life insurance policy with $500,000 coverage. She pays fixed monthly premiums, a portion of which builds her policy's cash value. By the time Emma is 60, she has accumulated $75,000 in cash value.
If Emma needs funds for an emergency or retirement goals, she can borrow or withdraw from this amount. Meanwhile, the $500,000 death benefit remains intact, ensuring financial security for her family. This combination of lifelong coverage and a financial safety net makes permanent life policies a reliable choice for long-term planning.
What are the advantages and disadvantages of permanent life insurance?
Pros
- Lifelong Coverage: Offers financial protection for your entire life as long as premiums are paid.
- Cash Value Accumulation: Builds a savings component that grows tax-deferred and can be accessed through loans or withdrawals.
- Fixed Premiums: Premiums typically remain stable, helping with long-term financial planning.
- Estate Planning: Provides funds for estate taxes or to leave an inheritance for loved ones.
- Loan Options: Allows borrowing against the cash value, often at lower interest rates compared to other loans.
- Guaranteed Payout: Ensures beneficiaries receive a tax-free death benefit no matter when you pass away.
- Flexibility: Can be customized with riders like critical illness or disability coverage.
Cons
- Higher Cost: Premiums are significantly higher compared to term life insurance.
- Complexity: Policies can be complicated to understand, especially with cash value and dividend options.
- Lower Returns: Cash value growth is typically slower compared to other investment options.
- Long-Term Commitment: Requires consistent premium payments to maintain coverage.
- Surrender Charges: Early cancellation often incurs high fees, reducing cash value.
- Not Ideal for Temporary Needs: May not be cost-effective for covering short-term financial obligations.
Is permanent life insurance worth it?
Whether permanent life insurance is worth it depends on your financial goals and personal circumstances. It provides lifelong coverage, builds cash value, and offers tax advantages, making it ideal for those looking to secure a financial legacy, cover estate taxes, or plan for lifelong protection. However, it comes with higher premiums compared to term insurance. If you’re seeking a policy that combines insurance with a savings component, a permanent life insurance policy can be a valuable investment.
How much does permanent life insurance cost?
The cost of permanent life insurance in Canada varies based on factors like age, health, coverage amount, and policy type, with average premiums starting around $100/month for younger, healthy individuals. However, it varies vastly from one provider to another, the coverage you need, and what your goals are.
Average Permanent Life Insurance Costs in Canada
These are typical costs for permanent life insurance in Canada and vary depending on factors such as smoking status and age.
| Coverage Amount | 30-Year-Old Non-Smoker (Monthly) | 30-Year-Old Smoker (Monthly) | 50-Year-Old Non-Smoker (Monthly) | 50-Year-Old Smoker (Monthly) |
|---|---|---|---|---|
| $100,000 | $50-$70 | $80-$110 | $150-$200 | $250-$350 |
| $250,000 | $120-$150 | $200-$250 | $350-$450 | $600-$750 |
| $500,000 | $250-$300 | $400-$500 | $700-$900 | $1,200-$1,500 |
| $1,000,000 | $450-$550 | $750-$950 | $1,300-$1,600 | $2,200-$2,800 |
Permanent Life Insurance Quotes For $250,000 Coverage
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 |
How are permanent life insurance quotes calculated?
Permanent life insurance quotes are calculated based on several personal and policy factors to determine your premium. They are:
- Age: Younger applicants typically pay lower premiums.
- Health: Medical history and current health affect your risk level.
- Gender: Women often have lower rates due to longer life expectancy.
- Coverage Amount: Higher coverage leads to higher premiums.
- Policy Type: Features like cash value or dividends impact costs.
- Smoking Status: Smokers pay significantly more than non-smokers.
- Payment Duration: Limited pay policies cost more due to shorter payment terms.
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 to get free quotes from the best companies in Canada in no time.
Term vs Permanent life insurance
Term life insurance provides affordable coverage for a specific period (e.g., 10, 20, or 30 years), ideal for temporary needs like paying off a mortgage or supporting young children. Permanent life insurance, on the other hand, offers lifelong coverage with a cash value component, making it suitable for long-term goals like estate planning or leaving an inheritance. Choosing between the two depends on your financial goals, budget, and the length of coverage you need.
Here is the difference between term and permanent life insurance:
| Feature | Term Life Insurance | Permanent Life Insurance |
|---|---|---|
| Duration | Fixed term (e.g., 10-30 years) | Lifetime coverage |
| Cost | Lower premiums | Higher premiums |
| Cash Value | Builds tax-deferred cash value | |
| Purpose | Temporary needs | Long-term financial planning |
| Premiums | Increase at renewal | Typically fixed |
| Payout | Paid if death occurs during term | Guaranteed payout upon death |
| Best For | Young families, mortgage coverage | Estate planning, lifelong security |
What are the types of permanent life insurance?
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 policy can be either straightforward or complex. Permanent 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.
| 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 participating life insurance
Permanent whole life insurance can further be broken down into non-participating and participating life insurance. In short, non-participating life insurance is the simpler version of the two and the cheapest. It offers guaranteed lifetime coverage without any other financial benefit.
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 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
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.
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. Here are some of the best permanent life insurance plans.
| Insurance Provider | Other Features | Action |
|---|---|---|
| Beneva |
| |
| Empire Life |
| |
| RBC Insurance |
| |
| iA Financial Group |
| |
| Equitable life of Canada |
| |
| Canada Life |
for universal life plans
| |
| BMO Insurance |
| |
| ivari |
|
Expert advice
Don't forget to use our free tool to compare the best permanent life insurance quotes based on your unique needs. Get personalized quotes in no time and the best rates with our tool.
How much permanent life insurance do I need?
The amount of permanent life insurance you need depends on your financial obligations, future goals, and the legacy you wish to leave behind. Here’s how you can determine the right coverage:
- Cover Outstanding Debts: Add up your mortgage, car loans, and other debts you don’t want to pass on to your loved ones.
Example: If you owe $300,000 on a mortgage and $20,000 on a car loan, you’ll need $320,000 to cover these liabilities. - Provide Income Replacement: Multiply your annual income by the number of years your dependents will need financial support.
Example: If you earn $75,000 a year and want to provide 10 years of support, that’s $750,000. - Account for Education Costs: Factor in tuition, books, and living expenses for your children’s education.
Example: For two children needing $25,000/year for 4 years each, you’d need $200,000. - Plan for Final Expenses: Set aside funds for funeral and burial costs, which typically range from $10,000–$20,000 in Canada.
Example: Allocate $15,000 for these costs. - Leave a Legacy or Cover Estate Taxes: Decide if you want to leave an inheritance or cover estate taxes.
Example: To leave $100,000 for each of two children and cover $50,000 in taxes, you’d need $250,000.
Quick Formula:
Coverage Needed = Debts + Income Replacement + Education Costs + Final Expenses + Legacy - Existing Resources
Good to know
You can also calculate the accurate permanent life insurance coverage you need in quick and easy steps using our HelloSafe permanent life insurance calculator. It takes into account a range of factors including your investments, salary, debts, and other commitments in a simple manner and gives you instant results.
How do I get a permanent life policy quote?
You can get permanent life insurance quotes using our free tool at the top of this page. You can compare dozens of quotes using the same tool for term life and permanent policies in the same place so you get the coverage that suits you best.
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 providers do offer online permanent life insurance quotes for their simpler Term-to-100 whole-life policies. So if you are looking for non-participating coverage it is possible to get estimated quotes directly through an insurance provider's website.
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, this policy 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, it 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 providers offer both participating permanent 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 at the top of this page and get free quotes.
Who needs Permanent Life Insurance?
Permanent life insurance is ideal for:
- Dependents Requiring Lifelong Support: Parents of children with special needs or caretakers of aging family members who need ongoing financial assistance.
- Estate Planning: Those who want to leave a financial legacy or cover estate taxes for their heirs.
- Wealth Preservation: High-net-worth individuals seeking to protect and grow wealth in a tax-advantaged manner.
- Business Continuity: Business owners who need coverage for succession planning or to secure business loans.
Why is permanent life insurance bad for me?
Permanent life insurance may not be necessary for individuals in the following scenarios:
- Temporary Coverage Needs: People who only need life insurance to cover debts, mortgages, or provide income replacement for a set period.
- Budget Constraints: Those who cannot comfortably afford higher premiums without compromising other financial priorities.
- Investment-Focused Individuals: People who prefer investing in higher-yield options like stocks or mutual funds for better returns.
- No Dependents or Significant Obligations: Individuals without dependents or major financial commitments may not benefit from lifelong coverage.
Expert advice
Permanent life insurance provides lasting financial security and peace of mind, ensuring your loved ones are cared for no matter what. It's a powerful tool for those seeking lifelong protection and a legacy for future generations. If you think it's right for you, explore the best plans and get the best rates using our free tool at the top of this page.
