Whole life insurance in Canada:5 Essential Tips for Buyers

Posted on June 27, 2006 and updated June 8, 2010 in Life Insurance Canada News 2 min read

whole life insurance tips

Whole life insurance provides peace of mind by delivering permanent coverage at a guaranteed rate. However, there are many variables to examine before purchasing a whole life insurance policy. The following 5 tips can assist in the process.

  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.

Apply now for whole life insurance.

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Michelle
Michelle

My fiancee is a non-smoking 56 yr. old man in good health (just had a physical with no problems at all). Is it possible to get whole life insurance for him on a small budget/income? We have a 4 yr. old son, so we would like some financial protection for the future. Thank you in advance.

Michelle

Jordan Smith
Jordan Smith

I have heard Whole Life insurance is a rip off. One agent suggested I switch my Whole Life policy for a Term policy is this a good idea?

LSM Insurance
LSM Insurance

We have also added an article to our website Whole life verus Universal Life Insurance.

admin
admin

Hello Charlotte, With a Whole Life policy you are paying a higher premium in intial years so you can have a level premium in the later policy years. Whole Life policies come in two forms; particiapting and non participating. Participating policies pay a dividend to the policyholder which flucuates with the companies performance. Non particpating policies are lower in cost, they do not pay a dividend. If you are concerned with guarantees take the non participating policy. All premiums, death benefit and pay periods are fully guaranteed. Whole Life policy have been sold in Canada for over 100 years and… Read more »

LSM Insurance
LSM Insurance

With a Whole Life policy you are paying a higher premium in intial years so you can have a level premium in the later policy years. Whole Life policies come in two forms; particiapting and non participating. Participating policies pay a dividend to the policyholder which flucuates with the companies performance. Non particpating policies are lower in cost they do not pay a dividend. If you are concerned with guarantees take the non participating policy. All premiums, death benefit and pay periods are fully guaranteed. Whole Life policy have been sold in Canada for over 100 years and if they… Read more »

charlotte
charlotte

I am so concern about the whole life insurance, who pays the rest of the premium after you pay off the 10,15 or 20 years premium.
And the policy says you have cash value, where is this money coming from.
some brokers says this policy is a scam, and they company will always come back to you for more premium after the schedule time, if the invested money did not do well in the market, so the premium can not be paid for you. is this true, explan!
Thanks

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