WHOLE LIFE INSURANCE QUOTE AND EXPERT TIPS

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Why Choose LSM Insurance For Whole Life Insurance

A truly an independent agency working for you. 15+ languages spoken.​
Licensed across Canada and working with over 100 experienced insurance brokers.​
Working with more 20 + insurers to find for you the best life and living benefits products.​
Proudly serving Canadians for over 25 years. Helped thousands Canadians.​

Sample Whole Life Insurance Quotes

Female, 51 years old, non-smoker, no serious health pre-conditions, whole life insurance policy for $200,000 coverage

Best quote: $237 per month

Male, 44 years old, non-smoker, no serious health pre-conditions, whole life insurance policy for $200,000

Best quote: $204 per month

Female, 35 years old, non-smoker, no serious health pre-conditions, whole life insurance policy for $500,000

Best quote: $276 per month

What is Whole Life Insurance?

Whole life insurance is a life insurance policy that covers a policyholder as long as he/she lives. In addition to being a life insurance product, it is also a saving product – a whole life insurance policy accumulates value that you can get, either when you terminate (surrender) the policy or if you decide to borrow against the policy value.

Historically, this type of insurance was created to combine a lifelong insurance product with a savings component.

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When do you Need Whole Life insurance?

There are numerous cases in which whole life insurance is your best option:

  1. You want to have life-long coverage that does not expire.
  2. You want to have predictable insurance rates – whole life insurance rates will always stay the same.
  3. You want someone to invest and monitor your savings for you.
  4. You are not expecting extraordinary investment profits – whole life insurance’s cash value accumulation will be always lower than high-risk/high-growth investments.

How does Whole Life Insurance compare to other life insurance products?

Here is a brief comparison on how whole life insurance compares to term life insurance and universal life insurance.

 Term Life InsuranceWhole Life InsuranceUniversal Life Insurance
Coverage lengthLimited (e.g. Term 10 – coverage for 10 years)Life longLife long
Insurance coverageYesYesYes
Cash accumulationNoYesYes
Can choose amounts going into insurance and cash accumulationNoNoYes

What are Whole Life Insurance Rates?

Whole life insurance rates are fixed for life. In the beginning, premiums are higher than term life insurance, but in the later stages of your life, term life insurance rates will be very high because they increase as you age. Whole life insurance rates will stay the same. That is why whole life insurance is a good option if you want to have predictable insurance rates that don’t skyrocket as you age.

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How Do Whole Life Insurance Dividends Work?

CAs mentioned earlier, whole life insurance is insurance which provides coverage for the policyholder’s entire lifetime. Whole life policies can be divided into two categories: participating and non-participating. Both policies provide level premiums, lifetime protection and a guaranteed cash value — but participating whole life plans pay an annual dividend. The annual dividend is NOT guaranteed, and in most instances is linked to long-term interest rates as well as the insurance company’s performance. If you have an existing participating whole life policy which was purchased in a high interest environment, it is a good idea to request an updated policy illustration—the projected values may have changed dramatically.

Participating policies: Most participating whole life policies have multiple dividend options. The following is a brief look at four various dividend options:

  1. Dividends on deposit – the annual dividend is kept on account within the policy
  2. Paid-up additions – the annual dividend is used to purchase additional paid-up insurance
  3. Premium reductions – the annual dividend is used to reduce the annual premium
  4. Term option – the annual dividend is used to buy paid-up term insurance

Non-participating policies: By contrast, non-participating whole life policies have no dividends, and the value of these plans are guaranteed. The shorter the policy payment period, the higher the premium. The guaranteed cash surrender value of whole life policies varies by the amount of coverage, length of time paid, and the company issuing the coverage.

Below is an example (the rates and values are as of July 2018) comparing a participating and non-participating whole life policy, using a 30-year-old male non-smoker with $250,000 of whole life coverage paid up in 20 years:

 Non-participating Foresters Whole Life PolicyParticipating Manulife Life Policy
Annual premium$2,522$8,028
20-year contribution$50,450$160,553
Death benefit at year 20$250,000$502,107
Death benefit at age 65$250,000$783,488
Cash value at age 65$411,943$783,488

5 Tips to Know When Buying Whole Life Insurance

  1. Whole life policies are generally much more expensive in nature and you want to make sure that you want coverage for life and that you’re able to afford the premium. If you cancel the policy in the early years, you’ll be losing the bulk of your contribution.
  2. Determine if you want a participating or non-participating policy. Participating whole life policies are generally higher in cost but provide an annual dividend which can translate into an increasing cash value and death benefit. This allows your policy to stay in line with inflation.
  3. Determine if the policy has a quick-pay option. Many whole life policies allow you the option of paying up the policy in 10, 15 or 20 years. You generally pay a higher premium for this option, since your premium period is condensed to a shorter time frame.
  4. Determine what riders or benefits are available as add-ons to the policy. Many whole life policies allow you to add a disability waiver, accidental benefit or a variety of other riders and/or benefits which can enhance the policy’s overall value. But be careful of the cost of these riders.
  5. Work with an independent broker who can provide you with unbiased independent advice and select the best whole life plan for your situation.
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