Last updated: June 21, 2023

What is whole life insurance?

Whole life insurance is a type of permanent life insurance that gives your beneficiaries a tax-free payment after you die (called a death benefit). Your beneficiaries can use the money from the death benefit any way they want. 

While some life insurance plans offer coverage for a specific amount of time, whole life insurance has no time limit because it covers you throughout your life. So you don’t have to worry about your coverage expiring or renewing your policy.    

How does whole life insurance work in Canada?

In Canada, a whole life insurance policy is a contract between you and a life insurance company. At Sun Life, we guarantee the payment of a death benefit to your beneficiaries in exchange for monthly or annual payments – also called premiums. The amount of money your beneficiaries receive depends on how much life insurance coverage you buy. You must be a Canadian resident to get one of our whole life insurance policies.

Some whole life insurance policies also include a savings portion called the cash value, which can grow over time on a tax-preferred basis. This means you won’t have to pay tax on any cash-value growth. You can take a loan against the cash value. Keep in mind, there may be tax implications from borrowing against your cash value or surrendering your policy. Connect with an advisor for more detailed information.

Benefits of whole life insurance

Lifelong coverage

You get coverage that lasts a lifetime – it’ll never expire.

Fixed premiums

Your premiums stay the same even if your health changes.

Financial protection for your loved ones

Your beneficiaries will get a tax-free payment after you die.

Cash-value growth

Some policies let you borrow from these funds at anytime.

How much does whole life insurance cost?

Your premiums will depend on various factors such as your age, assigned sex at birth, your current health and how much coverage you need.

Whole life insurance also tends to be more expensive than term life insurance. This is because it offers lifelong protection that never expires and premiums that stay the same even as you age or if your health changes. Term life insurance, by contrast, offers coverage for a specific period of time, and your premiums increase with every renewal. Learn more about the differences between whole vs term life insurance.

Our whole life insurance products

Sun Life Go Guaranteed Life Insurance

  • Get coverage up to $25,000.
  • Policy covers one person. 
  • Lifelong protection.
  • Guaranteed life insurance with no medical questions asked. 
  • You’re guaranteed to qualify even if you have existing health conditions.

More about Sun Life Go Guaranteed

Brochure - Sun Life Go Guaranteed

Ideal for people who:

  • Want to buy life insurance online quickly.
  • Want to cover end-of-life expenses.
  • Need insurance and have had trouble qualifying for life insurance in the past.

SunSpectrum Permanent Life II

  • Get coverage up to $25 million.
  • Policy can cover up to two people.
  • Lifelong protection with cash value. 
  • You’ll need to provide medical information.

 

More about Sunspectrum Permanent Life II

Brochure - SunSpectrum Permanent Life II

Ideal for people who:

  • Want to replace lost income.
  • Need to pay for end-of-life expenses.
  • Have to pay debts.
  • Want guaranteed premiums that never rise.
  • Want to leave an estate for loved ones or provide a gift to their favourite charity.

Get whole life insurance

Get advice

Not sure which whole life insurance product is right for you? A Sun Life advisor can help you figure it out and get you a customized quote for any of our products.

Enter your postal code to find an advisor near you.

Get a quote and buy online

If you’re looking for coverage up to $25,000, then you can get a quote and apply online for Sun Life Go Guaranteed Life Insurance.

Frequently Asked Questions

At what age can I apply for whole life insurance?

It depends on the whole life insurance product you select. Sun Life Go Guaranteed Life Insurance provides coverage for people who fall within ages 30 to 74. SunSpectrum Permanent Life II provides coverage for people at any age until 85 years old.

Can I cash out of a whole life insurance policy?

You can cash out of some whole life insurance policies. This means you’ll receive the cash value on your policy (less some fees), and your policy will be cancelled.

You also have the option to borrow from your policy if you have a cash value savings component. Keep in mind that doing this may reduce your death benefit. Connect with an advisor for more detailed information.

How much can I borrow from a whole life insurance policy?

If your whole life insurance policy comes with a cash value component, you can borrow a portion of it. How much you can borrow depends on how much you have available in your cash value. Connect with an advisor for more information.

How soon can I borrow against my whole life insurance policy?

You can borrow once you have the minimum required cash value in your life insurance policy, which is $250. You must have that much in your cash value in order to borrow from it. Connect with an advisor for more information

How long does it take to build cash value in a whole life insurance policy?

Some whole life insurance policies begin to accumulate cash value after 3 years.

How long do I have to pay for whole life insurance?

Depending on the whole life insurance product you select, it may be as short as 10 years, but you can choose other payment options. Connect with an advisor for more detailed information.

Is whole life insurance tax-free?

The death benefit from a whole life insurance policy is tax-free. However, some whole life policies come with a cash value component, which can grow on a tax-preferred basis. This means you won’t have to pay tax on cash-value growth. Please note, there may be tax implications from borrowing against your cash value or surrendering your policy. Connect with an advisor to learn more.

Does whole life insurance provide dividends? 

Sun Life has participating whole life plans, which give you the chance to earn dividends. Learn more about our participating whole life products.

Got more questions?

A Sun Life advisor can address any questions you may have and help you set up an insurance plan that meets all your needs.

Enter your postal code to find an advisor near you.