Whole Life: Certainty for Uncertain Times 

Whole Life insurance is a unique and increasingly popular asset class in Canada, and for good reason. It provides a unique combination of guarantees, tax planning benefits, and certainty that make it an attractive choice during times of economic uncertainty.

Let’s discuss why Whole Life as an asset class is growing so rapidly, despite having existed since 1847 here in Canada.


Whole Life insurance is a safe option for your capital because it provides guaranteed cash values and death benefits. The cash value component of a whole life insurance policy grows over time and is guaranteed by the insurance company every year. As a participating policy holder, you also earn an annual dividend which is paid to your policy each year. Once this dividend is declared and vested, your cash value and death benefit cannot decrease in value regardless of market conditions regardless of how the economy performs.

Tax Planning Benefits

Whole Life insurance policies are also an attractive option for tax planning in Canada.

Firstly, the cash value component of a whole life insurance policy grows tax-free, allowing for tax-free compound growth which is only available within your principal residence and your TFSA. This is significantly motivating for individuals who have already maxed out their RRSP and TFSA contributions, or those who own Holdco’s or other corporations. Imagine paying only 12.2% tax inside your corporation as opposed to possibly paying tax at the highest level of 53.53% in Ontario for example? Any opportunity to save on tax is one that every Canadian should explore and understand.

Secondly, with proper planning and advice, the funds inside your cash value can be accessed tax-free. What good is an asset that you can’t access easily, or without paying significant tax to do so? This makes it a tax-efficient way to build wealth and protect against economic uncertainty, while also providing tax free access to your capital.

Thirdly, Whole Life insurance policies provide a tax-free death benefit to the policyholder’s beneficiaries, making it an attractive estate planning tool. This ensures that your family or next generation are fully protected and that the wealth you spent your life building stays in their hands, not the CRA’s.


Whole Life insurance is a safe and consistent asset that can provide certainty during times of economic uncertainty because it offers protection against market volatility. Unlike other asset classes, Whole Life insurance policies are not affected by market fluctuations. This means that regardless of how the economy performs, the policyholder’s cash value and death benefit remain unchanged. In fact, the standard deviation associated with the participating account mentioned above has been lower then a 5 year GIC portfolio for years and in some cases, better then even the CPI. Better returns, with less volatility.

In conclusion, Whole Life insurance provides certainty as an asset class during times of economic uncertainty. We believe that every Canadian owes it to themselves to truly understand the unique tax benefits that make this asset class so unique and worth considering.


Chris Karram

Chris is a Co-Founder and Financial Advisor at SafeBridge Financial Group, the originators of Mortgage Centered Financial Planning, and is passionate about serving his clients and empowering the incredible team to “Be Better. Be Inspiring.” EMAIL | Facebook | Twitter