1 3
Notes
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.
How Canadians purchase
life insurance polices
$
22.2B
2018 life
insurance
premiums
Individual: 80%
Group: 20%
Most life insurance policies are
purchased by individuals through
an agent or advisor. A relatively
smaller amount is purchased as
part of a group policy through an
employer or as members of an
association.
Individual life insurance
in-force has grown faster than
group in the past decade,
accounting for 62% of the total,
up from 55% in 2008. This is
mostly driven by growth in
individual term life insurance.
Individual term
Individual universal life
Group term
Individual whole life
2018 2016 2014 2012 2010
$
5T
$
4T
$
3T
$
2T
$
1T
Universal life insurance
is a flexible form of
permanent life insurance
where consumers
select investment
options and the
insurer assumes
the risk related
to death.
Eighty per cent of life insurance
premiums are paid to purchase
individual policies
44%
31%
42%
33%
41%
35%
40%
36%
38%
38%
11%
11%
11%
11%
11%
2008
45%
29%
12%
14%
14%
14%
13%
13%
13%
Contents
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