Whole Life Insurance Introduction

 

Welcome to your whole life insurance guide. This page will give you a good understanding of whole life insurance and will inform you of savings opportunities and a number of other useful tips based on our publications. We will also help you to ind best whole life insurance quotes across more than 20 top Canadian insurers.

Whole life is a type of a permanent life insurance that covers you as long as you live. Typically, you will pay consistently higher premiums since, in the early years of your policy, it should accumulate enough value to off-set the higher insurance risk that comes in later life. Your premiums will not change throughout your life. You can also terminate the policy (or ‘surrender’ it) if you want to, and get part of the accumulated funds, or you can sometimes borrow money against your policy’s cash value.

What are whole life insurance rates in Canada?

This chart illustrates the average whole life insurance premiums across Canada based on all the records we have in our database.

Whole Life Insurance: Expert Opinion

 

“A whole life policy is a policy that stays with you for life, hence the name, and the premiums are generally level for life. Whole life policies also have a cash value in the policy, so if the insured needed to borrow from the policy or surrender the policy, there would be a cash value inside the policy.

Whole life policies can generally be non-participating or participating. Participating policies essentially participate in the profit of the insurance company and pay out a dividend, which is added to the guaranteed cash value. Participating policies are generally more expensive and have a higher cash value than non-participating policies.”

What factors impact whole life insurance rates?

Whole life insurance quotes can vary a great deal depending on a number of factors which include the following and their associated potential premium impact:

  1. Smoking: increase of 200%
  2. Drinking: increase of up to 50%
  3. Family history: increase of 50-250%
  4. Depression history: increase of 50-200%
  5. Physical build: increase of 25% to 200% if you are in a bad shape, or a savings of up to 25% for being in great shape.
  6. Medical history: can lead to exclusion of some diseases
  7. Driving record: increase of 25-50%
  8. Gender: decrease of approx. 25% for women

How can you save on whole life insurance?

  • Be healthy, save on insurance: If you are in a good health and have a good build when you apply for a life insurance policy, insurers will reward that with lower premiums. Insurance companies use a so called BMI index (body-mass index, a ratio of your height and weight)  to determine your premiums.
  • Women pay less: Female policyholders pay on average 25% less than male policyholders. Changing your gender will not really help – insurers consider the gender you were born with.
  • Stay Happy – otherwise it can become really expensive: Mental health matters – those with a history of depressions pay between 50% and 200% more.
  • Don’t drink excessively and reduce your low insurance rates: If you do not have any drinking issues, you can benefit from lower insurance rates – otherwise your premiums can increase by up to 50%. An intensive drinker would be considered somebody who drinks 3-4 beers a day.
  • Say no to guaranteed issue life policy: People with good health do not need a guaranteed issue life insurance policy (these are policies that do not require a medical exam but they cost more) – do a health check / exam and enjoy lower life insurance premiums.
  • Meet multi-life discount: This option is quite similar to the previous one but you still get two separate policies whereas one of them will have a significant discount.
  • Got in shape recently? Cash out!: If you already have a life insurance policy and got in shape compared to your state when you signed up for a policy (e.g. spending hours in a gym), you can request a review of your life insurance premiums.
  • Other tips: Contacting an experienced, licensed broker (see a button below) will help you to find other ways to reduce your term life insurance or whole life insurance premiums. Discussion with broker is entirely free and there is absolutely no obligations to buy.