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14 Canadian Life & Health Insurance Facts // 2020 Edition Notes Notes Permanent insurance – such as universal life or whole life – 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. In whole life insurance, the insurer takes on both the risk related to death and the underlying investment risk. Universal life insurance allows consumers to select – and change – premium levels and investment options while the insurer assumes the risk related to death. How Canadians purchase life insurance policies $ 23.3B 2019 life insurance premiums Most life insurance policies are purchased by individuals through an agent or advisor. The remainder are purchased as part of group policies through employers or as members of unions and associations. Individual life insurance now equals 63 per cent of total policies in-force, up from 55 per cent in 2009 — driven primarily by term life insurance. Over eighty per cent of life insurance premiums are paid to purchase individual policies Individual life coverage continues to grow $ 5T $ 4T $ 3T $ 2T $ 1T 43% 32% 42% 34% 40% 36% 39% 37% 37% 38% 11% 11% 10% 11% 12% 45% 30% 12% 13% 14% 13% 14% 13% 13% 2019 2017 2015 2013 2011 2009 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. Individual term life Individual universal life Group term life Individual whole life Individual: 81% Group: 19%