Issue link: http://clhia.uberflip.com/i/563156
8 surrenders or gives up the protection of the life insurance policy is entitled to its cash value. Whole life insurance has been the traditional form of permanent insurance, but in recent years universal life insurance has become more popular. At the end of 2014, protection offered through permanent life insurance policies was split with slightly more universal life (54 per cent) than whole life (46 per cent) insurance products. Term insurance policies typically offer benefits on death only and do not build up cash values. The premiums are initially lower than permanent insurance policies for the same amount of coverage, but increase with each renewal of the term policy, reflecting higher mortality rates at older ages. Coverage usually terminates at a specific age (e.g., 65, 70 or 75). Mass-marketed insurance is sold on an individual basis to members of a group, usually as term life insurance policies with automatic renewal provisions. In contrast, group life insurance is issued in the form of a master policy, under which certificates are issued to the individuals covered. Of the total individual life insurance owned by Canadians, 18 per cent is participating, where policyholders share in their insurer's profits as policyholder dividends that are typically held on deposit, used to increase the death benefit, or paid in cash. The remaining 82 per cent is non-participating. Ten years ago, participating policies accounted for 25 per cent of the total individual life insurance owned. Group life insurance At the end of 2014, 61 per cent of the group life insurance in force was on groups of employees, 7 per cent was on members of unions and associations, and 32 per cent was on group creditors insurance for individuals who had borrowed from credit agencies (e.g., banks, mortgage brokers, etc.). The average coverage per certificate was $46,500. Average amounts owned Excluding people without life insurance, the average amount of coverage per insured Life Insurance Ownership by Region End of 2014 ($billions) 50 100 150 200 250 300 350 400 450 500 550 600 650 700 750 800 850 900 950 1000 Atlantic provinces Quebec Ontario Prairie provinces British Columbia 193 327 346 541 397 654 125 122 983 482 Individual Group Sources: OSFI, CLHIA Life insurance coverage