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Canadian Life & Health Insurance Facts // 2026 Edition 22 Glossary L I N E S O F B U S I N E S S Life insurance Term insurance provides cost-effective, temporary coverage. Premiums typically increase over time in five, 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 – 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. Whole life insurance is a type of permanent life insurance that provides coverage for your lifetime. It has fixed premiums and builds up cash value. Universal life insurance allows consumers to select – and change – premium levels and investment options while the insurer assumes the risk related to death. Health insurance Supplementary health reimburses a variety of expenses, such as prescription drugs, dental, hospital and medical expenses that are not covered by provincial government plans. Disability insurance helps replace lost income due to disability (frequently integrated with public pension plans, workers' compensation benefits and Employment Insurance), usually paying around two-thirds of earnings. Accident & other insurance includes coverage for accidental death and dismemberment, long- term care and critical illness. Retirement solutions An annuity provides guaranteed lifetime income backed by an insurer. These products convert a lump sum of savings into a predictable income stream for life, or for a specified period, helping retirees manage the risk of outliving their savings. The monthly or annual payment is generally known in advance and remains stable, providing certainty and predictability for Canadians. A Variable Payment Life Annuity* provides retirement income protection. This product pools investments and longevity risks from multiple retirees, which can result in higher expected income compared to traditional annuities and allow for continued income during their lifetime. However, the annual payments are variable – adjusted based on market returns and the mortality experience of the pool. *Available only in Quebec

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