Universal life (UL) insurance provides permanent coverage along with investment components that allow policyholders flexibility in premium payments and death benefits. With many great options among Canadian providers, it can be tricky to identify the top companies.
This guide examines the best universal life insurance companies in Canada based on financial strength, premium rates, investment performance, and more.
Best Universal Life Insurance Companies in Canada
Universal life insurance combines permanent coverage with investment components for flexibility. With many providers in Canada, identifying the best options requires evaluating financial strength, premium rates, products, and more.
Sun Life Universal Life Insurance
Sun Life is one of the largest and oldest insurance companies in Canada, offering adjustable universal life policies with strong financial backing.
SunSpectrum Universal Life II is designed for those seeking lifetime protection, tax-preferred investment growth potential, and flexibility in choosing investments. This plan provides coverage ranging from $25,000 to $5 million. Policyholders can select from 13 different investment account options to design their own customized investment mix.
The plan also includes a reduced paid-up feature that allows for reducing the death benefit and stopping premium payments after age 70. It offers a guaranteed investment bonus that rewards maintaining and growing your policy’s fund value.
SunUniversalLife II offers extensive flexibility for those wanting lifetime protection and tax-preferred savings growth. This plan provides higher coverage limits ranging from $100,000 up to $25 million. There are 5 death benefit options and 6 cost of insurance options to select from. Policyholders can choose from 21 different investment account options to tailor the plan.
Sun Universal Life II Sample Monthly Premiums for $100,000 of coverage
| Age | Male | Female |
|---|---|---|
| 30 | $75.00 | $68.00 |
| 40 | $107.00 | $93.00 |
| 50 | $140.00 | $122.00 |
Some key advantages of Sun Life’s universal life insurance options include:
- Strong financial backing from a top Canadian insurer
- Wide range of coverage amounts
- Multiple investment account choices
- Ability to adjust death benefits and flexible payments
- Tax-advantaged cash value growth potential
- Paid-up provisions after age 70
- May qualify for preferred rates if healthy
Potential drawbacks to consider:
- Premiums may rise over time as the cost of insurance increases with age
- Interest returns may fluctuate with market conditions
- Added fees apply
Overall, Sun Life offers competitive and flexible universal life insurance options for Canadians seeking permanent coverage and tax-preferred investment growth features. Their policies provide adjustable coverage and premiums along with solid investment choices backed by Sun Life’s long-term financial strength and positive reputation.
Read the full review: Sun Life Insurance
Canada Life Universal Life Insurance
The key features of the Canada Life Universal Life Insurance policy include:
- Provides permanent, lifetime coverage
- Allows premium flexibility within minimum and maximums
- Offers a savings component that builds cash value invested in selected accounts
- Cash value grows tax-deferred and can be accessed through withdrawals/loans
- Ability to choose from a range of investment account options
- Can add optional benefits like disability waiver
- Conversion credits are available to transition from term policies
- Minimum face amount starts at $25,000
In summary, Canada Life provides a straightforward and flexible universal life insurance policy that combines permanent protection with tax-deferred investment growth potential. Key advantages are premium adjustability, accessible cash value options, and a variety of investment account selections to match risk tolerance.
Sample Annual Premiums for $100,000 of Canada Life Universal Life Coverage (Male NS)
| Age | Minimum | Target | Maximum |
|---|---|---|---|
| 30 | $484.54 | $745.36 | $3,307.38 |
| 40 | $718.56 | $1,105.15 | $4,528.20 |
| 50 | $1,057.73 | $1,625.77 | $6,118.12 |
Sample Annual Premiums for $100,000 of Canada Life Universal Life Coverage (Female NS)
| Age | Minimum | Target | Maximum |
|---|---|---|---|
| 30 | $432.99 | $665.98 | $2,912.92 |
| 40 | $624.74 | $959.79 | $4,011 |
| 50 | $914.43 | $1,406.19 | $5,407.61 |
Read the full review: Canada Life Insurance
iA Universal Life Insurance
iA Financial Group is a leading Canadian insurance and financial services company. They offer the Genesis Universal Life Insurance plan, which combines permanent, adjustable coverage with tax-sheltered investment potential. Genesis provides flexibility through premium adjustability, a variety of interest crediting options, an investment bonus feature, and no annual policy fees.
Some key features of Genesis include:
- Provides permanent, lifetime coverage
- Flexible premium payments – the ability to pay excess to accumulate tax-sheltered savings
- Wide range of investment options, from guaranteed interest accounts to index accounts
- 0.75% investment bonus paid annually on index accounts (some exceptions)
- Two cost of insurance options – Level or YRT rates
- Level COI has no surrender charges, YRT has a 15-year surrender period
- Joint coverage options: first-to-die, last-to-die, last-to-die paid-up on first death
- Face amount death benefit, or face amount plus fund value option
- No annual policy fees
Sample Monthly Premiums for $100,000 of iA Genesis Universal Life Coverage
| Age | Male | Female |
|---|---|---|
| 30 | $60 | $54 |
| 40 | $86 | $75 |
| 50 | $130 | $115 |
| Age | Male | Female |
|---|---|---|
| 30 | $106 | $93 |
| 40 | $153 | $141 |
| 50 | $225 | $202 |
Read the full review: IA life insurance
RBC Universal Life Insurance
RBC Insurance is a leading Canadian life and health insurance provider and a member of the Royal Bank of Canada group of companies. RBC offers the RBC Universal Life Insurance Plan, a flexible universal life insurance policy with permanent protection and tax-advantaged investment growth potential.
Some key features of the RBC Universal Life Insurance Plan include:
- Provides permanent, lifetime coverage
- Offers a cash value savings component with interest options
- Wide range of interest options to choose from, including guaranteed, variable, and daily interest
- Ability to select either a level or an increasing death benefit
- Option for single or joint first-to-die/joint last-to-die insurance coverage
- Includes living benefits like disability waiver and a compassionate advance
- Allows premium flexibility – can adjust amounts within set minimum/maximum
- Access to cash value through withdrawals, loans, or full surrenders
Sample Annual Premiums for $100,000 of RBC Universal Life Policy (Male NS)
| Age | Minimum | Maximum | Estimated Premium (Annual) for a Target Accumulation Value of $50,000 at maturity |
|---|---|---|---|
| 30 | $615 | $3,608 | $1,886 |
| 40 | $987 | $4,861 | $2,766 |
| 50 | $1,496 | $6,481 | $4,466 |
Sample Annual Premiums for $100,000 of RBC Universal Life Policy (Female NS)
| Age | Minimum | Maximum | Estimated Premium (Annual) for a Target Accumulation Value of $50,000 at maturity |
|---|---|---|---|
| 30 | $561 | $3,219 | $1,508 |
| 40 | $857 | $4,380 | $2,122 |
| 50 | $1,284 | $5,914 | $3,508 |
Read the full review: RBC Life Insurance
BMO Universal Life Insurance
BMO Insurance offers three main universal life insurance plans:
BMO Life Dimensions: This plan provides permanent coverage along with access to a wide selection of investment options that allow tax-deferred accumulation. It includes guaranteed bonuses to help boost the growth of the investment component.
BMO Life Dimensions Sample Annual Premiums for $100,000 of Coverage
| Age | Minimum | Target | Maximum |
|---|---|---|---|
| 30 | $358 | $453 | $3,393 |
| 40 | $419 | $668 | $4,546 |
| 50 | $604 | $1,216 | $6,010 |
BMO Life Dimensions (Low Fees): This plan provides the same permanent coverage and investment options as Life Dimensions but with lower policy fees. It also includes the Investor Maximizer feature to help maximize tax-deferred growth.
BMO Wealth Dimensions: Designed for high-net-worth individuals and business owners, this plan requires a minimum $25,000 initial premium deposit. It provides permanent coverage optimized for tax-deferred accumulation and includes the Investor Maximizer along with lower fees.
| Plan | Key Features |
|---|---|
| Life Dimensions | – Permanent coverage – Over 200 investment options – Guaranteed bonuses |
| Life Dimensions (Low Fees) | – Permanent coverage – Over 200 investment options – Lower policy fees – Investor Maximizer |
| Wealth Dimensions | – Permanent coverage – Over 200 investment options – Lower policy fees – Investor Maximizer – Minimum $25k deposit |
Some key advantages of BMO’s universal life offerings include:
- Backed by a major Canadian financial institution
- Wide range of investment account options
- Tax-deferred cash value growth potential
- Available riders and add-on benefits
- Premium flexibility and adjustment options
Potential drawbacks to consider:
- Interest returns fluctuate with market conditions
- Added fees and expenses apply
- Requires sufficient funding above COI costs
In summary, BMO Insurance provides flexible universal life solutions with permanent protection, tax-advantaged investing, and premium/coverage adjustability. Their plans offer a breadth of investment choices and strong financial backing.
Read the full review: BMO Life Insurance
Equitable Life Universal Life Insurance
Equitable offers two main universal life insurance plans:
Equitable Generations: This plan provides permanent, lifetime coverage with flexible premiums and investment options. It offers competitive pricing and modern investment choices, including ESG options.
Equation Generation IV: This plan also provides permanent coverage and investment flexibility. It includes a level cost of insurance option.
| Feature | Equitable Generations | Equation Generation IV |
|---|---|---|
| Premium Payment Flexibility | Yes | Yes |
| Death Benefit Options | – Account Value Protector – Level Protector | – Account Value Protector – Level Protector |
| Cost of Insurance Rates | Yearly Renewable Term | – Yearly Renewable Term – Level for Life |
| Investment Account Options | Wide range including: – Index accounts – ESG index accounts – Managed funds – Portfolios – Target date funds | Wide range including: – Guaranteed accounts – Daily interest account – Linked interest options |
| Tax-Deferred Cash Value Growth | Yes | Yes |
| Policy Loans and Withdrawals | Yes | Yes |
| Bonus Features | 0.75% Annual Investment Bonus | Incentive Bonus Potential |
| Supplemental Riders Available | Yes | Yes |
| Special Options for Joint Coverage | Yes | Yes |
Sample Annual Premiums for $100,000 of Equitable Universal Life Coverage
| Age | Minimum | Target | Maximum |
|---|---|---|---|
| 30 | $359 | $490 | $2,601 |
| 40 | $378 | $736 | $3,460 |
| 50 | $536 | $1,224 | $4,696 |
Both products offer adjustable permanent universal life coverage with tax-advantaged investing. The key differences are that Equitable Generations has more contemporary investment options, while Equation Generation IV offers more cost-effective insurance choices. But overall, they both provide flexible universal life solutions.
Read full review: Equitable Life Insurance
How to Choose the Right Universal Life Insurance Company in Canada
Selecting the best universal life insurance company for your needs requires research into financial strength, premium costs, investment performance, flexibility, and customer service reputation:
Compare Financial Strength Metrics
When evaluating providers, start by looking at key financial strength metrics:
- AM Best Rating – Assesses ability to pay claims on a scale from A++ to D.
- Years in Business – A Longer operating history indicates stability.
- Total Premiums Written – Higher premiums signal a larger scale and market share.
Financial Comparison of Top Providers
| Company | AM Best Rating | Years in Business |
|---|---|---|
| Sun Life | A+ (Superior) | since 1865 |
| Canada Life | A+ (Superior) | since 1847 |
| Industrial Alliance | A+ (Superior) | since 1892 |
| RBC Life | AA- Credit Rating | since the 1960s |
| BMO Life | AA- Credit Rating | since 1817 |
| Equitable Life | A (Excellent) | since 1920 |
Assess Policy Features and Flexibility
Look for policies that offer:
- Competitive premium rates for your situation
- Strong investment options with solid past returns
- Ability to easily adjust coverage amounts
- Flexibility to change premium payments
- Useful extra features like disability waiver
Investment Choices and Performance
An important consideration when selecting a universal life insurance provider is the range of investment accounts available and their historical performance. Universal life policies allow allocating a portion of premiums across various interest-earning accounts offered by the insurance company. These accounts make up the cash value portion of the policy.
Some key aspects to look at regarding investment options:
- Variety of account types – Does the company offer guaranteed, fixed, index, and equity-based accounts? More variety provides more diversification.
- Track record of returns – Review historical performance data for the accounts. Have returns been competitive over the long term?
- Downside protection – For index and equity-linked accounts, is there a guaranteed floor to protect against losses?
- Fees and expenses – Are there upfront fees or ongoing management expenses that impact earnings?
- Fund management – Who manages the funds underlying the accounts? Look for established fund managers with solid records.
- Ability to change allocations – Can you adjust how premiums are allocated as financial situations change?
Taking the time to understand how the cash value investment accounts work, the available options, historical returns, and fees can ensure you select a universal life policy aligned with your risk tolerance and growth objectives. Discussing investment performance with a licensed agent is highly recommended when choosing a provider.
Check Customer Service Reputation
Reviews from existing clients and advisors provide insight into the following:
- Overall satisfaction ratings
- Quality of support and responsiveness
- Professionalism and expertise of staff
- Ease of getting quotes and submitting claims
Consult a Trusted Insurance Advisor
An experienced advisor can help narrow down the best universal life insurance company for your specific needs and budget. Doing thorough research on these factors ensures you make the ideal choice.
Ready to find the ideal universal life insurance provider for you? Get customized quotes from Canada’s top insurers through LifeBuzz. We make it fast and easy to compare insurers side-by-side to find the perfect universal life insurance policy for your situation.
Searching for the right life insurance provider requires in-depth research. Our series on the best life insurance companies in Canada makes it easier by evaluating major insurers across key coverage types. By rating insurers on financial strength, coverage flexibility, availability, rates, and reputation, we aim to help Canadians identify the best option to suit their protection needs. Browse the related articles to compare our top recommended providers for different policies.
- Best term life insurance companies in Canada
- Best whole life insurance companies in Canada
- Best family life insurance companies in Canada
- Best children’s life insurance companies in Canada
- Best life insurance companies for smokers in Canada
The bottom line
Universal life insurance can provide lifelong protection and tax-preferred savings in one flexible policy. With excellent and affordable options among Canadian insurers, take time to compare companies on metrics like financial stability, premium costs, investments, adjustability, and customer service ratings to make a confident choice. Reach out to top-rated life insurance companies for quotes so you can find the best universal life insurance company for your situation.
FAQs about Best Universal Life Insurance Companies in Canada
What is the cheapest universal life insurance company in Canada?
Equitable Life of Canada typically has some of the lowest premium rates for universal life insurance compared to other major Canadian insurers.
How flexible is Canada Life's universal life insurance?
Canada Life's universal life policies offer flexibility to adjust coverage amounts, premium payments, and investments and add useful optional riders.
How do I apply for iA Financial Group's universal life insurance?
You can easily get a quote and apply for iA Financial's universal life insurance online through their website or by contacting an advisor.
What are the best investment options with RBC Life's universal life insurance?
RBC Life offers a range of strong investment options for top fund managers to choose from within their universal life policies.
Does BMO Life's universal life insurance allow adjusting coverage?
Yes, BMO Life's universal life insurance allows you to raise or lower your death benefit amount when your needs change.
What types of universal life insurance does Sun Life offer?
Sun Life offers adjustable basic universal life insurance along with indexed, variable, and guaranteed universal life insurance products.
Does iA Financial Group's universal life insurance build cash value?
Yes, iA Financial's universal life policies have an investment component that builds tax-deferred cash value you can access via loans or withdrawals.
Can I adjust my death benefit with RBC universal life insurance?
RBC Life's universal life policies allow you to increase or decrease the amount of your death benefit within certain limits.
How do I contact Sun Life about universal life insurance?
You can contact Sun Life directly by phone or online to get personalized universal life insurance quotes and speak with a representative.
Does Canada Life offer guaranteed universal life insurance?
Yes, Canada Life offers guaranteed universal life insurance policies that provide lifelong coverage with guaranteed premiums.
Where can I get a quote for RBC universal life insurance?
You can easily get a quick RBC Life universal life insurance quote online through their website or by contacting an advisor.
Does Canada Life have term conversion options on universal life insurance?
Yes, Canada Life offers the ability to convert an existing term life insurance policy to a permanent universal life insurance policy.
Article Sources:
Delve into the principles that guide our dedication to truthfulness, clarity, and editorial autonomy by exploring the Lifebuzz.ca Editorial Policy. This is the cornerstone of our esteemed status as the premier trusted source for life insurance information in Canada.
Our research team thoroughly evaluates universal life insurance providers using a comprehensive scoring system. We focus on the factors most important to consumers when choosing coverage. Our analysis includes:
- Brand Reputation (40% weight): We assess brand trust and stability by reviewing ratings from independent agencies like A.M. Best, J.D. Power, and NAIC complaints data. Companies with higher scores receive more points.
- Policy Options (33% weight): More universal life products and features earn companies more points. We favour providers offering adjustable coverage, flexible premiums, cash value options, and supplemental riders.
- Availability and Service (19% weight): Ease of contacting agents via phone, online, in-person, or other methods is evaluated. Companies get the most points for offering multiple communication channels.
- Customization (8% weight): Providers offering more riders and endorsements to customize coverage receive higher scores. We favour companies with 10+ riders available.
In summary, our comprehensive rating system carefully analyzes universal life insurance companies across factors like financial strength, variety of offerings, accessibility, and ability to customize coverage. This rigorous evaluation helps us identify the top providers for different consumer needs.
