April 22, 2022

What is life insurance?

Life insurance is coverage that gives your family or beneficiaries a tax-free cash payment (The death benefit is the money your beneficiaries receive if you die while your life insurance policy is in effect. also called a death benefit) after you die. This way, they can help take care of their financial needs even after you’re gone. 

Life insurance helps protect the financial security of the people who are depending on you. You can enjoy peace of mind today by making sure you have:

  • enough life insurance, and 
  • the right type of life insurance to protect your beneficiaries.

How can you get life insurance?

Sun Life makes it easy for Canadians and anyone residing in Canada to have their life insurance in order. We offer the following convenient solutions: 

Types of life insurance

Term life insurance

Temporary, renewable, and flexible protection from the financial impact of your death, for those who depend on you. 

You can buy term life insurance that covers you for 10, 15 or 20 or more years. You’re covered if you die within the term of your insurance and meet the policy conditions. 

You may also have the flexibility to convert to permanent life insurance.

Learn more about term life insurance.

Permanent life insurance

Lifelong protection from the financial impact of your death. It’s also an opportunity for tax-preferred cash value growth.

Permanent insurance covers you no matter when you die. This is provided that you meet all the conditions in your policy.  You can buy permanent life insurance that covers you no matter when you die.

There are three types of permanent life insurance: whole, participating, and universal. Certain types of permanent life insurance plans, such as participating and universal life insurance, may also offer tax-preferred growth in your cash valueCash value is a savings component that can grow over time. You can borrow against it or use it as collateral for a loan. Please note that there may be tax consequences to accessing your policy’s cash value and death benefit.

Learn more about permanent life insurance.

What type of life insurance is right for you?

There’s no “one-size-fits-all” type of life insurance. The kind your parents have, or that your friend just bought, may not be the best kind for you. To help choose the right type of life insurance, you need to look at: 

  • your personal needs and current situation, 
  • the stage of life you’re at, and 
  • what you can afford. 

The cost of life insurance can vary based on your age, assigned sex at birth, health, lifestyle, and medical history. The best solution could even be having more than one type of policy. Here’s a breakdown of how different types of life insurance work: 

Comparing different types of life insurance

 

Term Life Insurance

Permanent Life Insurance

How can I get a quote?

Get a quote online

Talk to an advisor for a customized quote.

There are three type of permanent life insurance: whole, universal and participating. You can Get a Quote online for Sun Life Go Guaranteed Life Insurance (a whole life insurance plan). For other types of permanent life insurance, you can get a customized quote from an advisor. Get a quote online

Talk to an advisor for a customized quote.

Does it cover me for life?

Most term plans will give you the opportunity to renew your coverage until age 85.  No, it covers you if you die within the specific length of coverage you choose (e.g. 10, 20 or 30 years.)

Yes, it covers you no matter when you die, as long as all of your policy conditions are met.

How much coverage can I get?

Apply online: up to $1 million.

Through an advisor: up to a maximum of $25 million.

Apply online: up to $25,000.

Through an advisor: up to a maximum of $25 million.

Do my beneficiaries get a tax-free cash payment?

Yes.

Yes.

 

Do my premiums* (fees) stay the same?

The cost won’t increase for the length of your term. But it may increase if you renew your coverage after your term expires.

Some plans allow you to pay for a guaranteed number of years, and then never again. Yes, costs are guaranteed for life when you first buy the policy.

Where can I read more about the different types of this insurance? Simplified Term Life Insurance or no medical term life insurance offers a flat monthly cost that won't change for the first 10 years. You can choose your coverage for $50,000, $75,000 or $100,000. Sun Life Go Simplified Whole life insurance
SunSpectrum Term Life Insurance offers coverage between $50,000 and $25 million for terms of 10, 15, 20 or 30 years.  SunSpectrum Term Participating life insurance
Sun Life Go Term Life Insurance offers up to $1 million for a 10- or 20-year term. Sun Life Go Term Universal life insurance
SunTerm Life Insurance coverage is available in amounts of $250,000 to $25 million for terms of 10, 15, 20 or 30 years.  SunTerm  

How can I get a quote online?

Get a quote online for:

  • Sun Life Go Simplified
  • Sun Life Go Term

Get a quote online for:

  • Sun Life Go Guaranteed Life Insurance (a whole life insurance policy)

How can I get a customized quote?

Find an advisor to get a customized quote for:

  • SunSpectrum Term
  • SunTerm

Find an advisor to get a customized quote for:

  • SunSpectrum Permanent Life II (a whole life insurance policy)
  • All of our participating life insurance products.
  • All of our universal life insurance products.

Frequently Asked Questions

A term life insurance policy can be ideal for Canadians:

  • have a spouse or common-law partner, 
  • have a family and/or a mortgage,
  • are looking for the most affordable option, or
  • are a business owner who needs protection for a limited time.

There are three types of permanent life insurance: whole life insurance, universal life insurance and participating life insurance. A permanent life insurance policy can be ideal for Canadians or people residing in Canada who: 

  • want lifetime coverage with a guaranteed death benefit, 
  • like the idea of guaranteed cash value and 
  • want premiums that won’t increase.

Whole life insurance is a type of permanent life insurance. It can be ideal for Canadians or people residing in Canada who: 

  • want lifelong financial protection, 
  • want their premiums to stay the same throughout their life, and
  • want a cash value component to their life insurance policy. 

Participating life insurance is a type of permanent life insurance. It can be ideal for Canadians or people residing in Canada who: 

  • want a guaranteed amount of coverage along with a guaranteed cost,
  • want the opportunity to increase the death benefit over time to keep up with inflation,
  • have maximized their RRSP and TFSA contributions and are looking for a tax-efficient strategy to grow non-registered investments, or
  • are business owners searching for tax-efficient ways to help protect their business value.

Universal life insurance is a type of permanent life insurance. It can be ideal for Canadians or people residing in Canada who: 

  • want flexible lifetime insurance coverage with the opportunity for tax- preferred savings,
  • want a guaranteed amount of coverage along with a guaranteed cost, 
  • have maximized their RRSP and TFSA contributions and are looking for a tax-efficient strategy to grow non-registered investments, or
  • are business owners searching for tax-efficient ways to help protect their business value.
  • Apply online

    You can find a new plan in 3 easy steps:

    1. Tell us about yourself.

    2. Select your coverage.

    3. Get a quote.

    Get started

  • Connect with an advisor

    A Sun Life advisor can help you figure out which type of life insurance is right for you.

To find an advisor near you, enter your postal code: