What is whole life insurance?
Definition
Educational information only. Last reviewed August 25, 2026.
How it works in Canada
Dividends on participating policies reflect the results of the insurer's participating account, including mortality, expenses and investment experience. They are declared annually and are not guaranteed. Dividends may be taken in cash, used to reduce premiums or used to buy paid-up additional coverage.
Example
A policyholder directing dividends to paid-up additions gradually increases both the death benefit and cash value, though the amounts are not guaranteed.
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Written and reviewed by CanadaGFI.ca Editorial Team
Licensed insurance and financial professionals contributing to CanadaGFI.ca
Published and last reviewed August 25, 2026. Read our editorial policy and disclosures.
This page is educational information about Canadian financial concepts. It is not personalized financial, tax, insurance or legal advice, and it does not consider your individual circumstances. Product availability, eligibility, pricing and tax treatment depend on the provider, your situation and current Canadian rules. Speak with a professional licensed in your province before acting.
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