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9
2007 2009 2011 2013 2015 2017
Individual life insurance
has grown faster than
group in the past
decade, accounting for
61% of the total, up from
55% in 2007. This is
mostly driven by growth
in individual term life
insurance
45%
45%
43%
42%
40%
39%
29%
30%
32%
34%
36%
37%
13%
12%
11%
11%
10%
11%
13%
13%
14%
13%
14%
13%
-
$1T
$2T
$3T
$4T
$5T
Individual whole life Individual universal life
Individual term Group term
Life insurance protection by product
At the end of 2017, Canadians owned $4.7 trillion of life insurance protection. There are two basic
types of life insurance: permanent and term insurance, with variations on each to meet specific
consumer needs.
Term insurance provides cost-effective, temporary coverage over an insured's younger years.
Premiums typically increase over time in 5, 10 or 20 year "steps". Term insurance usually
provides a right to convert to permanent insurance with the same insurer without further
underwriting, providing consumers with the ability to adjust coverage features to address
long-term needs.
Permanent insurance meets life-long protection needs. In addition to death protection, cash
values are accumulated and can be used for financial emergencies, or to supplement
retirement income. Premiums can be paid over a set number of years or for life.
Whole life insurance is the traditional form of permanent insurance where the insurer
takes
on both the risk related to death and the underlying investment risk. Under Universal life
insurance, consumers select investment options and the insurer assumes the risk related to
death.