Whole Life Insurance - Client Guides

There are several very high quality whole life insurance contracts provided by many different Canadian Insurance companies.  The articles below provide great simple-to-read guides that explain how whole life insurance works.

Whole Life Insurance - PAR Investment Accounts

How are Dividends Calculated


Owners of participating policies get the opportunity to be rewarded if the participating insurance business line performs better than expected. 

By sharing the experience associated with the participating insurance business line, participating policy owners accept more risk in return for those potential rewards. 

A participating policy includes fundamental guaranteed values like a guaranteed amount of insurance and a guaranteed cash value, but the potential for growing those values beyond the base guarantees solely depends on the profits generated by the participating account.  The Insurance Companies Act (ICA)* requires insurance companies that have shareholders to maintain a separate account for their participating business. Profits in this account are generated by the participating business and are tracked separately from the profits of the rest of the company. The factors that can affect the profitability of the participating business are the same factors that affect the profitability of the insurance company. It’s like a business within the business. 

Main Factors Affecting the Performance of the PAR Account and Participating Policies

The participating business is managed to ensure there is always enough money in the participating account to pay future obligations, such as death benefits and cancellation cash values to policy owners. Several factors will influence the participating account’s cash flows and its performance. We set the premium rates, insurance purchase prices and guaranteed cash values using estimates called pricing assumptions, to help anticipate those cash flows. 


Whole Life Insurance - Corporate Planning

In Canada, no other product can provide the tax planning benefits to a policy owner then a corporately owned/funded permanent life insurance policy.   This section provides various corporate planning strategies and technical tax information.

Comparing term life insurance to whole life insurance

This is a pretty simple-to-understand video that compares term life insurance with permanent whole life insurance.  

The first 10 minutes of video is very educational (which is great).  

His commentary after the 10 minute mark is a bit too opinionated for me, but should provide great questions for the consumer to ask when having conversations with Brian.