Universal Life (UL) insurance is a unique and powerful way to secure your family’s future while building tax-advantaged wealth. However, it is not easy to know which company offers the best mix of protection, cost, and investment freedom for your life.
This guide is designed to simplify that choice. The advisors at Lifebuzz have gone beyond a list of universal life insurance companies and analyzed their financial strength, cost of insurance (COI) stability, and investment performance to help you identify the best fit for your financial goals.
How We Rank The Best Companies for Universal Life Insurance in Canada
We assessed universal life insurance providers using four weighted criteria:
Financial Strength and Stability (30%)
We assess each insurer’s financial health from independent third-party agencies such as A.M. Best. We only recommend insurers rated “A” (Excellent) or higher.
Product Features & Flexibility (20%)
Universal life insurance is defined by its flexibility. The best policies can adapt to your changing financial needs throughout your life. We give higher scores to companies that offer:
- Flexible premium payment options (including overfunding).
- Multiple Cost of Insurance (COI) options
- Choice of death benefit structures.
- A wide range of valuable policy riders
Investment Performance (20%)
The investment component is what separates universal life from other types of insurance. We look for:
- A diverse menu of investment accounts (from guaranteed funds to index funds).
- Low and competitive Management Expense Ratios (MERs).
- Strong historical performance and unique investment features.
Cost Competitiveness & Transparency (20%)
We evaluate the policy’s overall cost-effectiveness and the clarity of its fee structure to ensure you receive good value. We give a high score for companies that have:
- Competitive premium costs compared to industry averages.
- Low internal policy fees and surrender charges.
- Clear and transparent disclosure of all costs to the policyholder.
Customer Service and Accessibility (10%)
We consider how accessible a company’s products are to the average Canadian. This includes evaluating the straightforwardness of their underwriting process and whether they offer simplified or no-medical options for those who may not qualify for a traditionally underwritten policy.
We also review customer feedback, complaint indexes, and the availability of online tools for policy management.
LifeBuzz’s Top 6 Universal Life Insurance Providers in Canada
| Feature | Best for | A.M. Best Rating | COI Options | Key Differentiator |
|---|---|---|---|---|
| Sun Life | Overall Balance | A+ (Superior) | Level, YRT | Strong brand, paid-up features after age 70. |
| iA Financial Group | Best for Bonuses & Low Fees | A+ (Superior) | Level, YRT | No annual policy fees (Genesis plan). |
| RBC Insurance | Brand Stability & Integrated Banking | A (Excellent) | YRT | Compassionate advance living benefit. |
| Equitable Life | Competitive Pricing | A (Excellent) | Level, YRT | Competitive pricing, modern ESG investment options. |
| BMO Insurance | Investment Options & Accumulation | A (Excellent) | Level, YRT | “Investor Maximizer” feature, huge fund selection. |
| Canada Life | Policy Flexibility & Conversions | A+ (Superior) | Level, YRT | Long history, conversion credits for term policies. |
Sun Life Universal Life Insurance
- Operating Since: 1865
- Financial Strength: A+
- Lifebuzz Rating for UL products: 5⭐
- Verdict: Best for Overall Balance
Sun Life is a giant in the Canadian insurance market, and its UL products reflect its scale and experience.
Sun Life’s UL Product Offerings:
- SunSpectrum Universal Life II: A great entry-point UL policy with coverage from $25,000 to $5 million and 13 investment options. It’s designed for individuals and families seeking lifetime protection with solid investment growth potential.
- SunUniversalLife II: A more robust plan for high-net-worth or complex needs, with coverage up to $25 million, more death benefit/COI combinations, and 21 investment accounts.
Why we like it:
SunUniversalLife II is a premier product for estate planning and wealth transfer. Its key advantage is the high degree of customization available, including joint-last-to-die coverage and the Reduced Paid-Up features that can eliminate premium payments after age 70, making it ideal for sophisticated financial strategies.
Below are SunUniversalLife 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 |
What to consider: Premiums may not be the absolute cheapest on the market. Investment returns are subject to market fluctuations, and policies have associated management fees.
Overall, Sun Life universal life insurance is suitable for Canadians seeking a flexible, well-rounded policy. It offers adjustable coverage and solid investment options, all backed by Sun Life’s strong financial stability and reputable history.
Read the full review: Sun Life Insurance
Canada Life Universal Life Insurance
- Operating Since: 1847
- Financial Strength: A+
- Lifebuzz Rating for UL products: 5⭐
- Verdict: Best for Policy Flexibility and Conversions
Why we like it: Canada Life is often the go-to choice for policyholders transitioning from Term to Permanent insurance because of its generous conversion credits. Their UL product is designed to be highly adjustable, allowing you to toggle your premiums between a minimum (to keep the insurance active) and a maximum (to stuff the tax-sheltered investment account).
They also offer excellent liquidity options. If you need to access the cash value you’ve built up, Canada Life provides streamlined processes for policy loans or withdrawals, though tax implications always apply.
Sample Annual Premiums for $100,000 of Canada Life Universal Life Coverage (Male NS) – Quotes pulled from Canada Life
Sample Annual Premiums for $100,000 of Canada Life Universal Life Coverage (Female NS) – Quotes pulled from Canada Life
Read the full review: Canada Life Insurance
Equitable Life Universal Life Insurance
Our Verdict: Best for Competitive Dividends and Brand Trust
- Financial Strength: A
- Lifebuzz Rating for UL products: 4.5⭐
- Verdict: Best for Cost-effectiveness
Equitable Life’s UL products are often among the most affordable in Canada.
Equitable Life’s UL Product Offerings:
- 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.
Why we like it: Equitable Life’s UL products are often among the most affordable in Canada. Their Equitable Generations plan is particularly noteworthy for including responsible investing (ESG) index accounts, which cater to growing demand for socially conscious investments. Equitble also offers flexible policy design, with both Level and YRT COI options available across their products.
What to consider: As a smaller company, its brand recognition isn’t as high as the major banks or Sun Life. Its A.M. Best rating (A) is “Excellent” but one tier below the “Superior” (A+) rating of its larger competitors.
Read full review: Equitable Life Insurance
iA Financial Group Universal Life Insurance
Our Verdict: Best for Competitive Dividends and Brand Trust
- Financial Strength: A+
- Lifebuzz Rating for UL products: 4.5⭐
- Verdict: Best for Bonuses & Low Fees
iA’s UL Product Offerings: Genesis Universal Life Insurance
Why we like it:
iA Financial Group is a leading Canadian insurance and financial services company. Their Genesis Universal Life Insurance plan is highly attractive due to one standout feature: no annual policy fees. This can lead to significant long-term savings and faster cash value accumulation. The plan also offers an annual 0.75% investment bonus on its index accounts, flexible premium options and a good range of investment choices, including index-linked accounts.
What to consider: The YRT COI option includes a 15-year surrender-charge period, which reduces flexibility if you need to cancel the policy in the early years.
Read the full review: IA life insurance
BMO Life Universal Life Insurance
Our Verdict: Best for Competitive Dividends and Brand Trust
- Financial Strength: A
- Lifebuzz Rating for UL products: 4⭐
- Verdict: Best for Investment Options & Accumulation
BMO Insurance is the undisputed leader in investment choice, offering over 200 different account options. This makes it a powerful tool for portfolio diversification within a tax-sheltered environment.
BMO’s UL Product Offerings:
| Plan | Key Features |
|---|---|
| BMO Life Dimensions | – Permanent coverage – Over 200 investment options – Guaranteed bonuses |
| BMO Life Dimensions (Low Fees) | – Permanent coverage – Over 200 investment options – Lower policy fees – Investor Maximizer |
| BMO Wealth Dimensions | – Permanent coverage – Over 200 investment options – Lower policy fees – Investor Maximizer – Minimum $25,000 deposit |
Advisor’s note: The Wealth Dimensions plan requires a minimum initial deposit of $25,000, making it an exclusive product for serious investors. For standard coverage, their Life Dimensions plan remains highly competitive.
Why we like it: Unparalleled investment selection. Backed by a major bank. Plans are optimized for cash value accumulation.
What to consider: The sheer number of options can be overwhelming without guidance from an advisor. Performance is highly dependent on market conditions and fund selection.
Read the full review: BMO Life Insurance
RBC Universal Life Insurance
Our Verdict: Best for Competitive Dividends and Brand Trust
- Financial Strength: A
- Lifebuzz Rating for UL products: 4⭐
- Verdict: Best for Brand Stability & Integrated Banking
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 UL plan that provides a good range of interest options (guaranteed, variable), valuable living benefits, and integrates well into the broader RBC financial ecosystem.
Why we like it: The feature we like the most is the compassionate advance, which allows for a portion of the death benefit to be paid out early if the insured is diagnosed with a terminal illness.
Read the full review: RBC Life Insurance
FAQs: Best Universal Life Insurance Companies in Canada
What’s the difference between Level COI and YRT in universal life insurance?
Cost of Insurance (COI) represents the monthly charge for your death benefit protection within a universal life policy. Yearly Renewable Term (YRT) charges increase annually based on your age.
Can I cash out my Universal Life policy?
Yes. You can surrender the policy for its “Cash Surrender Value.” However, this may trigger a tax bill. Alternatively, you can borrow against the cash value (policy loan) or use it as collateral for a bank loan, often tax-free.
Which is the cheapest Universal Life company?
While rates fluctuate based on health and age, Equitable Life and iA Financial consistently offer some of the lowest minimum premiums for healthy non-smokers.
What happens if my investments perform poorly?
This is the main risk of Universal Life. If your chosen investments drop in value, your cash value decreases. If it drops too low, you may be forced to pay higher premiums out-of-pocket to keep the insurance from lapsing. This is why selecting a company with a strong dividend or bonus history (like Sun Life or BMO) is vital.
The Bottom Line
Universal life insurance is a versatile tool for long-term financial planning, estate preservation, and tax-sheltered investment growth. The best company is the one whose product structure, investment philosophy, and cost align with your personal financial situation. While Sun Life offers a fantastic overall package and BMO leads in investment choice, don’t overlook the competitive pricing of Equitable Life or the low-fee structure of iA Financial.
The most critical step is to speak with an independent insurance advisor, who can apply this information to your specific circumstances to show you exactly how each policy would perform over time.
Explore our extensive guides:
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. Browse the related articles to compare our top-recommended providers across 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
Article Sources:
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