Whole life insurance: guaranteed cover for life
Whole life insurance covers you for your entire life, as long as premiums are paid, and pays a guaranteed tax-free benefit to your beneficiaries whenever you die. Along the way it builds a guaranteed cash value you can borrow against or withdraw.
It costs more than term coverage for the same death benefit, and in exchange it removes the two uncertainties term leaves open: whether you will still be insurable later, and what it will cost.
Share a few details, an advisor prices it personally
How whole life insurance works
Your premium is set when the policy is issued and never increases. Part of it pays for the insurance; part builds cash value that grows on a guaranteed schedule. Participating whole life policies from Canadian mutual and stock insurers may also pay dividends, which can buy extra paid-up coverage, reduce premiums or accumulate with interest. Dividends are not guaranteed.
Many policies offer limited-pay options, for example paying for 10 or 20 years and then holding a fully paid policy for life.
When whole life makes sense
Whole life is a long-term commitment, so it tends to fit needs that never expire:
- Final expenses and a guaranteed legacy for children or grandchildren
- Covering estate taxes on a cottage, business or investment property
- Insuring a child or grandchild while premiums are lowest
- Balancing a portfolio with a conservative, tax-advantaged asset
Why Bima uses an advisor for this coverage
Whole life pricing depends on the carrier's dividend scale, the pay period you choose, riders, and full medical underwriting. Bima collects the basic details, then a licensed advisor prepares a proper illustration, explains what is guaranteed and what is not, and helps you compare it with a term policy so the choice is yours.
This coverage is priced case by case, so Bima does not show online estimates for it. Share a few details and a licensed advisor prices it personally and comes back to you within 24 hours.
Whole Life insurance questions, answered
Is whole life insurance a good investment?
It is insurance first. The cash value grows conservatively and tax-sheltered, which some people value, but it should be compared with registered accounts and other options. A licensed advisor can show the numbers side by side.
Can I cancel a whole life policy?
Yes. Surrendering the policy pays out the cash surrender value, which in the early years is usually well below the premiums paid. Ask your advisor how the surrender schedule works before you buy.
Why doesn't Bima show a whole life quote online?
Because premiums depend on the pay period, dividend options, riders and underwriting, an online range would be misleading. A licensed advisor prices it personally and contacts you within 24 hours.
Whole life or term: which should I choose?
Term is usually the right first step for income and mortgage protection because it is affordable. Whole life suits permanent needs like final expenses and estate planning. Many families hold both.