Permanent life insurance

• Your policy stays active for your entire life
• Coverage continues even if your health changes
• No renewal required

• Part of every premium contributes to the policy’s cash value component
• Your money grows tax-deferred
• You can access funds when you need them

* Cash value is only available on select permanent life insurance products. For more detailed information, connect with a Sun Life advisor.

• Unlike term life insurance, most permanent life insurance policies have fixed premiums (fees) that never change
• Your payments don't increase as you age
• You can budget with confidence

• Beneficiaries pay no income tax in Canada on the death benefit
• Funds arrive quickly when your family needs them most
• Money can cover final expenses, debts, or living costs

The cost of permanent life insurance depends on several factors, including:

• Your age when you apply. Younger applicants typically pay lower premiums. The earlier you buy, the more you can save over your lifetime.
• Your health and lifestyle. Your medical history, family health background, smoking status and lifestyle choices all affect your rate. Non-smokers usually pay less than smokers.
• The coverage amount you choose. Higher death benefits mean higher premiums. Think about what your family would need to maintain their lifestyle.
• The type of permanent insurance you select. Whole life and universal life have different cost structures. Each type offers unique features and flexibility.

Your exact cost will be unique to your situation. The best way to know what you'll pay is to get a quote online or connect with a Sun Life advisor.

Learn more about whole life insurance rates in Canada

Permanent life insurance makes sense if you have long-term needs that go beyond temporary coverage. Here are some situations where a permanent policy might be the right choice for you:

Long-term financial obligations

Permanent insurance helps when you have long-term responsibilities such as:

• A child or family member with special needs who will always need support. Your coverage will help provide them with financial security , even if you were to die.
• Dependents who rely on your income indefinitely. Some family members may always need your financial help. Permanent life insurance helps ensure they'll be financially protected.
• A spouse or common-law partner who would face financial hardship. If your partner depends on your income or would struggle with expenses, permanent coverage helps provide peace of mind.

Estate-planning goals

Permanent life insurance plays a key role in leaving a legacy and protecting your family's inheritance. It can help those who have:

• Assets that will create a tax bill for their beneficiaries. Life insurance can help cover estate taxes so your loved ones keep more of what you leave behind.
• A desire to leave a legacy. You know exactly what your beneficiaries will receive, regardless of market conditions.
• Final expenses they want covered without burdening their families. Funeral costs, outstanding debts, and legal fees can add up quickly. Insurance can help cover these costs, so your family doesn't have to.
• A business that needs succession funding. The death benefit can help your partners buy out your share or keep the business running smoothly.

Permanent life insurance works best when you need coverage that lasts a lifetime. Talk to a Sun Life advisor to see if it's right for your situation.

Yes. Life changes, and your insurance can change with you. Many permanent life insurance policies offer flexibility to adapt as your needs evolve. Here's what you can adjust:

• You can adjust your coverage amount. If your financial situation changes, you may be eligible to increase or decrease your death benefit. This helps you stay protected without starting over with a new policy.
• You may be able to convert between policy types. Some policies give you options to switch. For example, you might convert term insurance to permanent coverage without a medical exam. This protects your insurability even if your health has changed.
• Some policies let you reduce premiums by using cash value. If your cash value has grown, you can use it to help pay your premiums. This can ease your budget during tight financial times.

For more detailed information, connect with a Sun Life advisor. 

Choosing between permanent and term life insurance depends on your needs and budget. Each type offers different benefits and protection. Here's how they compare:

Term life insurance:

• Covers you for a set period (5 to 40 years)
• No cash value
• Initially costs less, but premiums will increase upon renewal

Permanent life insurance:

• Covers you for life
• Can build cash value, depending on your policy
• Costs more, but premiums typically stay the same

Both types of insurance protect your loved ones. The right choice depends on how long you need coverage and what you want your policy to do for you.

Learn more about the differences between term and permanent life insurance

Yes. Many people combine both types of life insurance to get the best of both worlds. Here's how it works:

• Term insurance for temporary needs (like a mortgage). Use affordable term coverage to protect your family during high-expense years. As your mortgage gets paid down and your kids grow up, these needs decrease.
• Permanent insurance for lifelong protection. Keep a permanent policy to cover final expenses, estate taxes, or leave a legacy. This ensures you're always protected, no matter what.

This strategy balances affordability with long-term security. You get the coverage you need now without breaking your budget. And you still have permanent protection for goals that last a lifetime.

Think of it like layering your insurance. Term coverage handles your short-term responsibilities. Permanent coverage takes care of your lasting commitments.

A Sun Life advisor can help you design a combination that works for your unique situation and budget.

Learn more about having multiple life insurance policies

Yes. If you have cash value in your permanent life insurance policy, then it’s yours to use however you want. Here are common ways people use their cash value:

• Emergency funds. Life throws unexpected challenges your way. You can tap into your cash value to cover urgent expenses like car repairs, home damage, or medical bills.
• Supplementing retirement income. When you retire, your cash value can provide extra money to support your lifestyle. This helps fill gaps between your pension, savings, and government benefits.
• Paying premiums during financial hardship. If money gets tight, you can use your cash value to keep your policy active. This helps protect your coverage when you need it most.

Remember: Using cash value reduces your death benefit if not repaid. When you borrow or withdraw from your cash value, your beneficiaries will receive less when you pass away. If you repay what you borrowed, your death benefit goes back up. Think carefully about how accessing your cash value affects your long-term protection goals.

Connect with a Sun Life advisor to understand your options and make choices that work for your current needs and goals.

Usually, yes. Most permanent life insurance policies require a medical exam to assess your health and set your premium rate. Here's what the application process typically includes:

• A medical questionnaire. You'll answer questions about your health history, lifestyle, and family medical background. This helps the insurance company understands your overall health.
• A medical exam. A healthcare professional will check your height, weight, blood pressure, and heart rate. These medical exams can affect your coverage.

Some policies offer simplified underwriting with higher premiums.

If you want to skip the medical exam, you have options. Simplified issue policies like Sun Life GO Guaranteed Life Insurance ask about your smoking status  but don't require any medical tests. No medical exam policies approve you without any health checks at all. These policies may cost more because the insurance company takes on more risk without knowing your exact health status.

The medical exam might feel like an extra step, but it can work in your favour. Better health can mean lower premiums and more coverage options.

A Sun Life advisor can explain which application process fits your situation and help you find coverage that meets your needs and budget.

Life insurance provides you with a benefit for the unexpected. However, in some cases, you may end up paying more than the actual death benefit that goes to your beneficiaries.

For example, you're aged 48 and purchase $25,000 of Sun Life Go Guaranteed Life Insurance for $60 per month. By the time you reach age 82, you'll have paid more than your total death benefit. If your death happens before age 82, you'll have paid less for your death benefit.

Yes, there are exclusions that apply. Exclusions are circumstances where your death benefit won’t be paid out.

See all the exclusions and limitations by product in the sample policies below:

Sun Life Go Guaranteed Life Insurance (whole life insurance) sample policy

Sun Life Go Term Life Insurance sample policy

Sun Life Go Simplified Term Life Insurance sample policy

Other exclusions may apply. Connect with an advisor for more detailed information.

You can cancel your policy at any time. If you cancel within 30 days of issue, we’ll refund your money.

To cancel your life insurance policy, mail a written request to:

Sun Life Assurance Company of Canada
P.O. Box 2001, Stn Waterloo
Waterloo, ON
N3J 0A3