Secure a Legacy with Whole Life Insurance
Use our whole life insurance calculator to:
✔Calculate how much insurance you need
✔Compare rates of 20 companies in a few clicks
✔Consult a professional and purchase your insurance online
NorthWise Insurance is an independent broker of Life Insurance in Ontario.
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Quick Quote or Detailed Analysis
Know how much insurance you need? Great, go right to our quote page.
Don’t know what amount or type of insurance to get? We got you, use our handy Life Insurance Needs tool to see what a financial planner would recommend to you.
What is Whole Life insurance?
Simply put, whole life insurance or permanent life insurance is insurance that lasts for your whole lifetime. As long as you pay your required premiums, your life insurance will never expire, so you don’t have to worry about outliving your coverage.
Like all life insurance, whole life insurance pays out a tax-free death benefit to your beneficiaries when you pass away. Whole life insurance requires premium payments, usually made monthly or annually, which covers the cost of insurance. Cost of insurance varies based on many factors, such as the age of the life insured when the policy is issued, gender, smoking status, medical rating, and coverage amount.
When buying a whole life insurance policy, you will have the choice of a participating or non-participating policy. The “participating” aspect refers to an insurer’s participating account, which can lead to extra growth and benefits being directed your way.
We have multiple plans for you to choose from
An insurer’s participating account is made up of the funds you contribute to your policy (i.e. premiums), combined with all other participating policy owners’ premiums. These funds are invested by the insurance company, and if there is growth, the company pays out dividends to participating policy owners.
Factors that can influence participating account growth:
1. Market performance
2. Policy owner lapses and loans
3. Death benefit payment across the company
If earnings exceed the amount required to meet the company’s obligations to policy owners, dividends may be distributed to owners of participating policies. They are never guaranteed, but you do have a few options with respect to what you do with any dividends your policy receives. You can allow your dividends to accumulate, and potentially accrue interest – this growth is not taxable unless you withdraw the dividends from your policy. You can also use those dividends to purchase more coverage within your policy. Another option is to use those dividends toward your premiums, potentially allowing the policy to fund itself. It is important to have access to multiple plans to ensure you are getting the best performance out of your whole life insurance.
Another component of whole life insurance is the cash values that builds up over time. This cash value may be available for you to withdraw or borrow against, but the death benefit will be reduced accordingly. Additionally, if your policy has a cash value and you decide to cancel your coverage, you may be entitled to some or all of that cash value.
What makes whole life insurance coverage different from term insurance?
Consider the difference between renting and owning. Term life insurance is like coverage that you rent for a specified period of time, while whole life is coverage that you own for a lifetime.
Additionally, whole life offers features that term coverage doesn’t, such as dividends for participating policies, and a cash value component that you may be able to borrow against. Whole life can be seen as an insurance policy and an emergency fund in one: imagine having to pay for emergency roof repairs, or wanting to help your child buy their first car. A whole life policy may allow you to access funds at a relatively low interest rate, but it’s important to remember that your death benefit will be reduced accordingly. You can repay these loans and borrow again in the future if the need arises.
What types of needs does whole life insurance cover?
One of the most common reasons people purchase permanent insurance
Can cover expenses such as funeral costs, income tax bills, debt settlement
“Keep the Cottage”
Final tax returns can often be larger than expected
If you have assets that you’d like to pass on intact to your children, a whole life policy can help to cover those end-of-life bills so your loved ones won’t be forced to sell off your assets
Provide an Inheritance
Because life insurance proceeds are paid out tax-free, you can ensure that your beneficiaries get the amount you want them to get
Life insurance is the fastest way for your family to get money upon death – reap the benefits of no probate process
Donate to Charity
Many people want to donate to a cause that is special to them. You can give back to your community and get a tax break or return from the government at the same time. Using life insurance this way can help you connect with your values
You can designate a registered charity as the beneficiary on your permanent life insurance policy, ensuring that the full tax-free amount is paid to the charity when you pass away
How to Compare Whole Life Insurance Policies
Choose a monthly or annual amount that you’re comfortable with spending (e.g. $100/month), then compare the following three areas:
1. Initial death benefit
2. Cash value over time
3. Death benefit growth over time
Different policies have different features, which can affect the growth of the policy over time. Because whole/permanent life insurance is intended to be used as a long-term financial tool, we usually focus mainly on the growth of the cash value and the death benefit.
Why are people flocking to online insurance?
Choice, flexibility, and convenience. Gone are the days where one insurance company has the best of everything. Let us take care of your due diligence and find the right coverage with the right company.
Insurance On Your Terms
- $4.5T Life Insurance Coverage
- $20.3B – 2016 Life Insurance Premiums
- 22M Canadians Own Life Insurance
- 91 Life Insurance Providers
We put the Wise in NorthWise. Rely on the unbiased advice of our licenced insurance representatives. Our only goal is to get you the right protection at the best rate. We take pride in treating each client like family.
- Knowledgeable – Our team is made up of licensed insurance advisors that keep up-to-date with the insurance world.
- Technology Driven – We have the tools in place to make sure your plan is fool proof.
- Confidential – All conversations with our team are strictly confidential.
- Service For Life – Finding life insurance is the first step. We want to have a lifetime relationship with you and your family to provide much needed protection.
Does NorthWise help after applying for a policy?
Can NorthWise service my existing policy?
How much coverage do I need?
The answer to this question depends on the purpose of your insurance. If intended to cover a mortgage debt, you may want to apply for coverage that will clear your mortgage. If you are using the insurance for final expenses and income replacement for your spouse, you will want to calculate how much you expect your funeral to cost, and how many years’ income you want to provide. If you’re purchasing business insurance, you’ll need to know how much your stake in the business is worth. There are so many variables at play that there is no simple answer. It’s best to get in touch and let us help you decide.
I already have life insurance. How do I know if I have enough coverage?
Ask us for a free review to make sure your existing insurance policy meets your needs. Some people feel they’re paying too much in premiums or need more coverage. We have the expertise and the experience to find the best solution for you.
When do I need to get life insurance?
Often, people start thinking of life insurance when they’ve made a major life change – think getting married, buying a home, having a child, and many other situations. If you’re not sure whether you need it or if it’s the right time for you, just ask! We’d be glad to review your situation and make our recommendations.
Am I too old to buy life insurance?
There are life insurance policies that are designed for older adults. Everyone’s situation is different, but we’re confident that, no matter your age, we can help you find the right policy for you at the right price.
Who gets the money when I pass away?
Life insurance policies allow you to name one or more beneficiaries. When you pass away, the death benefit is paid out to them tax-free. You can name a person, a business, a charity, or your estate to be a beneficiary.
Can I be declined coverage?
Life insurance business is based on risk. Unfortunately, this means that yes, if your health is poor, you may be declined. If the insurance company deems you to be too high a risk, they may choose not to approve your coverage. However, just because one company declines to insure you, that doesn’t mean that they all will. As licensed brokers, we have access to all the top insurance companies in Canada, so we can work with you to find the right fit at the right price.
Is the payout guaranteed?
Yes, as long as required premiums are paid, the death benefit is a guaranteed payout. There are a few exclusions in the first two years of the policy, including an exclusion for suicide, and for fraudulently-completed applications.
Can I reduce or increase coverage?
Yes! You can reduce your coverage at any time, subject to any minimums imposed by the insurance company. You may also be able to increase coverage, but in order to do this, medical evidence of insurability will be required.
What are the different payment methods?
Most companies offer annual or monthly payments, and some also offer quarterly or semi-annual. Generally, you can pay electronically via online banking, or you can send a cheque through the mail.
When does my coverage start?
Technically, coverage begins when your application is approved by the insurance company, and premiums are payable from that date forward. Your policy is not considered to be officially placed until the first premium is received and the policyowner signs off that they’ve received the policy.
Can my premiums go up for whole life insurance?
Premiums for whole life policies generally remain the same throughout the life of the policy, and are based on the age of the life insured at the time of policy issue.
If my health isn’t great, what happens?
Most people can still qualify for insurance if they’re not in great health, but they will most likely have to pay a higher premium. Some people may be in poor health and may be declined regular coverage, but this doesn’t mean they’re completely uninsurable. Non-medical and guaranteed policies are designed for people who are elderly or who have health problems. We can work with you to find the right coverage for you.
What is the difference between universal life and whole life insurance?
Both are types of permanent insurance. With whole life, the life insurance company decides how the money is invested in the participating account. With universal life, you have control over the investment component.
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