Best Permanent Life Insurance Companies in Canada for 2025 (Ranked)
Consultez les soumissions d'assurance-vie abordables de PolicyMe et d'autres grandes entreprises.
What is permanent life insurance?
Permanent life insurance is life insurance that lasts for the policyholder’s entire life. With permanent life insurance, your loved ones are guaranteed to receive a death benefit payout as long as you keep up with your premiums, since there’s no way to outlive a permanent policy.
But permanent life insurance comes in a variety of shapes and sizes, depending on your insurance needs — and it’s not the right product for every Canadian. Permanent life insurance options include:
- Term-to-100 (T100) life insurance: The most straightforward type of permanent life insurance coverage, this policy simply covers you until you turn 100. T100 insurance doesn’t build cash value, but it offers a guaranteed death benefit for your beneficiaries.
- Whole life insurance: Whole life insurance includes lifelong coverage and a guaranteed payout, but it also has a cash value component that grows over time and can be accessed while the policy’s active. Premiums and interest rates for whole life insurance are fixed, making it a simpler product than universal life.
- Universal life insurance: Universal life insurance is like a customizable version of whole life insurance. It’s got lifelong coverage and guaranteed payouts, but premiums are adjustable to help you tailor your estate planning strategy to your changing needs.
- Participating life insurance: With a permanent participating life insurance policy, you have the option to earn dividend payments based on how the life insurance company that owns your policy is performing.
It’s a rectangle vs. square situation: all whole life insurance policies are permanent, but not all permanent life insurance policies are whole life insurance policies.
Remember: Permanent life insurance is an umbrella term that refers to a variety of lifelong life insurance solutions, including whole life insurance. The term “permanent life insurance” can also refer specifically to a term-to-100 policy that offers lifelong coverage without the investment components present in whole and universal life insurance products.
Who is permanent life insurance best for?
Permanent life insurance isn’t for everyone. It might be the right fit for your family’s financial plan if:
- You have lifelong dependents: Term life insurance is a popular product for Canadians with young kids, but it’s designed to expire when those kids are financially independent. If you know that your children or spouse will always depend on your income — for instance, in cases of disability — a permanent plan with a guaranteed death benefit may be a better fit.
- You have a high net worth: Permanent life insurance premium payments are often 10x the cost of term life insurance — or more! For most Canadians, the high price of coverage isn’t worth the return on investment.
- You’ve exhausted all your retirement savings options: Have you maximized your FHSA, RRSP, and TFSA contributions? If you’re still looking for ways to put aside money for retirement — and you can afford the premiums — a permanent life insurance policy with a cash value growth component may be worth exploring.
- You want to cover your final expenses: Funerals aren’t cheap, and some people may choose to purchase a permanent life insurance policy to relieve their loved ones of this burden.
Permanent life insurance generally isn’t the best life insurance option for most families. Unless you’re in the small group of Canadians with a high net worth or dependents with permanent financial needs, a term life policy is likely the better option. Term is best suited for those looking to cover their family while raising their kids or paying off a mortgage.
What’s the best permanent life insurance in Canada?
The best permanent life insurance companies in Canada include PolicyMe, Sun Life, and Ivari.
Best permanent life insurance: PolicyMe
Why we chose it: If you’re looking for universal or whole life coverage with a guaranteed cash value component and bells and whistles, look elsewhere. But for Canadians in search of the simplest, most affordable lifelong coverage, PolicyMe’s permanent product offers permanent financial security without the complications that come with other life insurance products.
Pros
- More affordable than most permanent life insurance
- Available nationwide
Cons
- No policies with cash value component
- Digital-first company lacks in-person advisors
Competitive pricing and a strong industry reputation make PolicyMe an excellent option for simple permanent life insurance.
Best whole life insurance company: Sun Life
Why we chose it: As one of Canada’s biggest life insurance providers, Sun Life has something for everyone, but its whole life insurance product stands out. Sun Life’s interest rates for whole life insurance are competitive, meaning that your policy’s cash value has greater growth potential, allowing for more significant withdrawals. Sun Life offers whole life policy options with or without a medical exam, which may be useful if you’re unable to get a policy through full underwriting due to health conditions.
Pros
- Ideal for high-net-worth individuals
- Wide network of insurance advisors
Cons
- Limited online quoting
- Higher pricing compared with competitors
Best universal life insurance company: Ivari
Why we chose it: Universal life insurance is all about customization, and Ivari offers nearly endless options, including term children’s coverage and premium waivers if you’re disabled before age 65. It’s also available nationwide, which is a major advantage for customers living outside of Ontario (the primary market for some other life insurers).
Pros
- Offers single and joint life insurance options
- Flexible payment options
Cons
- Limited online tools
- Rigorous underwriting process can delay approval
Best participating life insurance: Assumption Life
Why we chose it: Assumption Life offers two participating life insurance plans that deliver dividends to policyholders: ParPlus for adults and ParPlus Junior for youths aged 15 days to 17 years old. With full and accelerated underwriting, multiple add-ons, and coverage up to $4 million, it’s a way to get whole life insurance with lower premiums.
Pros
- Lenient residency requirement
- Competitive premiums
Cons
- No online quotes
- Weaker industry reputation
Best guaranteed issue permanent life insurance: Manulife
Why we chose it: While we recommend full underwriting as the best way to avoid overpaying for life insurance, we wanted to include an option for applicants who’d rather avoid a medical exam altogether. Manulife’s two guaranteed issue policies offer permanent coverage with a quick application process, which could be a significant advantage for those with serious health conditions.
Pros
- Guaranteed renewability
- Discounts for certain policies
Cons
- Pricing is not competitive
What is the best alternative to permanent life insurance in Canada?
If you’re not sure permanent coverage is right for you, you may want to consider buying a term life insurance policy. This is the most popular type of life insurance for Canadians, and it allows most families to protect their finances without overpaying for permanent coverage.
The best term life insurance companies include PolicyMe and RBC Insurance.
Best term life insurance company: PolicyMe
Why we chose it: PolicyMe’s term life insurance offerings represent the ideal balance of affordability, speedy applications, and reliable coverage. All of our term policies are backed by Securian, an insurer with an A+ financial strength score from A.M. Best, and include complimentary perks like $10,000 of child coverage and discounts for couples.
Pros
- Streamlined online approval process
- All term policies can be converted to permanent coverage
Cons
- No in-person advisors
Runner up for best permanent life insurance: RBC Insurance
Why we chose it: With over 100 years of experience in Canada’s financial industry, RBC is the country’s largest bank and one of the cheapest providers of term life insurance. But some customers report difficulty getting in touch with representatives — a common downside of working with larger financial institutions.
Pros
- Robust financial backing from Canada’s largest bank
- Competitive pricing for term policies
Cons
- Mixed customer reviews
- No online quoting process
Methodology: best permanent life insurance in Canada
To find the best life insurance companies in Canada, we evaluated over 20 of the largest and most well-known insurers in the country using three categories:
- Affordability: To determine which insurers charge the lowest premiums, we gathered over 2,000 life insurance quotes. Our price data spans smokers, non-smokers, and birth sex, across six age groups from 18-70 and five products (including term and permanent life insurance).
- Customer service: To find out which life insurance companies offer the best customer experience, we averaged review scores from the Better Business Bureau, Trustpilot, Insureye and Google.
- Industry reputation: To ensure our recommendations were financially sound, we reviewed each life insurance company’s financial stability ratings from leading credit agencies A.M. Best, Morningstar DBRS and S&P Global. We incorporated Glassdoor reviews to reflect each insurer’s ability to manage and support its employees.
All three categories received a final score out of 5, which was then averaged for an overall score out of 5.
PolicyMe does not receive compensation for any life insurance reviews.
How to find the best permanent life insurance for you
The best permanent life insurance is different for every Canadian. Following the steps below can help you narrow down the right policy and provider for your needs.
- Determine whether you actually need permanent life insurance: Most Canadians don’t need permanent life insurance. If you’re not sure whether it’s right for you, using an online life insurance calculator or working with an insurance advisor could help you better understand your unique needs.
- Choose between whole, universal, participating and T100 options: Do you need stable, lifelong coverage, or are you looking for a tax-advantaged cash value growth opportunity? Term-to-100 is the most straightforward permanent life insurance option, but every individual has different priorities.
- Research financial institutions: Big-name providers like Manulife or Sun Life may have more resources or greater financial strength, but smaller carriers might offer more personalized customer service. Read life insurance reviews from real customers to better understand what each carrier has to offer.
- Get quotes: Once you’ve chosen the company you’d like to work with, contact a representative or fill out an online application to request a quote. Be sure to answer all questions honestly, even if you’re worried that they’ll have a negative effect on your application — providing inaccurate information is fraud and could invalidate your coverage.
FAQ: Best permanent life insurance in Canada
