In Canada, purchases of permanent life insurance policies which include Whole Life and Universal Life Policies have significantly increased as of year 2025. New annualized premiums saw a 13% year over year jump for Q1 of 2025 as reported by LIMRA, this was mainly due to the increased sales of Whole Life and Universal Life policies, now accounting for over 80% of the market. This increase demonstrates the growing interest for products that offer maximum coverage, cash growth and financial flexibility during uncertain economic conditions.
In addressing the gap of Canadians not having a reliable guide for insurance related services, Planet Insurance offers policy comparison and a step-by-step comparison of policies which helps Canadians make informed decisions. Let’s discuss the driving factors of increasing demand for permanent life insurance and how Planet Insurance aids the Canadians.
What Are Permanent Life Insurance Policies?
Whole Life Insurance guarantees protection for the entire lifetime of the policyholder. A portion of the premiums also builds a cash value and policy asset that can be accessed during the lifetime of the policy. Many Whole Life plans are participating policies which means that annual dividends can be paid and utilized to enhance coverage or to lessen the premiums.
On the other hand, Universal Life Insurance offers more flexibility by allowing the adjustment of premiums and death benefits which can also be reduced. A cash value is also accumulated but success is based on how well the interest credited and cost of insurance charges are managed. Some policies now include no-lapse guarantees to ensure coverage remains if certain premiums are met.
What Is Behind the Surge in Popularity in 2025?
- Life Long Value & Stability
Permanent policies offer guaranteed coverage along with a cash value that accrues tax-deferred—making these policies especially appealing in the current economic climate with inflation, uncertainty, and market turmoil.
- Record Market Growth
Whole Life premiums climbed 15% in Q1 2025 alone (totaling CAD $346.7M), while Universal Life grew similarly by 15% to CAD $67.3M. Term Life, by comparison, grew by only 6% to CAD $94.4M, representing just 19% of new premium volume.
- Advisors Targeting Affluent Clients
The surge in growth stems from policies aimed towards estate and continuity planning that feature a “wealth short-pay.” Advisors are shifting their focus to higher-net-worth clients and the growth appears to be significant.
- Dividends & Cash Value: How It Works
Dividends are a hallmark of participating Whole Life policies. While not guaranteed, top carriers like Equitable Life, Manulife, iA, RBC Insurance, and Sun Life have delivered rates in the range of 6.3%–6.4% as of 2025. These dividends can be:
- Used to purchase paid-up additions,
- Used to lower premiums for the following year,
- Kept as cash value or withdrawn in cash.
Through compounding, these valuable assets can be accumulated and accessed in the future for retirement, education, or emergency needs while the policy holder also enjoys a death benefit.
Planet Insurance: Your Canadian Life Insurance Partner
At Planet Insurance Canada, we assist you in capitalizing on permanent life insurance trends to achieve personal financial advantages:
– Expert Comparison: We analyze the dividend histories and product features from the leading insurers, Sun Life, Manulife, Canada Life, Equitable, iA, RBC, and Empire Life.
– Customized Guidance: We develop tailored strategies for your specific objectives, whether you are you building estate wealth, planning retirement supplements, or leaving a legacy, explaining riders, cash-value access, and optional conversions.
– Transparent Quotes & Pricing: We present to you the projected overall costs, complex dividend projections, and expected policy behaviors over time and the policy’s complex structure, so you can make informed decisions.
– Ongoing Support: Your life is not static, and your insurance strategy does not need to be either. Planet Insurance assists with policy reviews and strategy to help keep your coverage optimized.
