Understanding your options

Whole & participating life

Whole life is permanent coverage that combines a lifelong death benefit with a cash value that grows over time. Participating policies add annual dividends on top.

By Trevor Perron, Independent Insurance Advisor · Serving Manitoba & Ontario

How whole life works

• Lifelong coverage with no expiry, as long as premiums are paid;
• Level premiums that stay predictable for life;
• Cash value that grows tax-deferred and can be borrowed against;
• A tax-free death benefit for your beneficiaries.

What "participating" adds

A participating policy shares in the insurer's surplus through annual dividends. Dividends aren't guaranteed, but major Canadian carriers have paid them consistently for over a century. They can buy paid-up additions — more coverage that itself earns cash value and dividends, creating a compounding effect.

Accessing cash value

You can borrow against the cash value (interest applies and unpaid balances reduce the death benefit), withdraw funds (which may be taxable and reduce the benefit), or surrender the policy for its cash value.

Term 100 — a simpler permanent option

Term 100 is permanent coverage with level premiums and a guaranteed death benefit, but no meaningful cash value or investment component. It's a cost-effective way to secure lifelong coverage — popular for estate planning — without the complexity of cash value.

Who it's for

Those who want guaranteed lifelong protection, a conservative savings component, and estate-planning tools to pass wealth efficiently to their heirs.