Universal life insurance (UL) continues to be a popular choice for Canadians seeking long-term coverage with the added benefit of wealth-building opportunities. Combining permanent life insurance protection with investment options, UL plans allow policyholders to grow tax-deferred savings inside their policies, providing flexibility that traditional term or whole life insurance lacks.
With inflation, rising taxes, and ongoing economic uncertainty in 2025, the adaptability of UL insurance has become an attractive solution for those looking to secure their financial future. This article covers the top UL insurance plans available in Canada, highlighting key features, premiums, and what makes each plan stand out.
1. Manulife – Performax Gold Universal Life
Manulife’s Performax Gold UL stands out for its high level of customization, offering policyholders control over investment choices, death benefits, and additional riders. Ideal for individuals seeking a highly flexible plan that accommodates estate planning and business succession, this policy is well-regarded for its wide variety of investment options, including market-based and guaranteed accounts.
Ideal For: Estate planners, business owners, and high-net-worth individuals.
Strength: High degree of customization, strong global insurer.
Limitations: Higher premiums, steep learning curve.
Estimated Premium: Around $100/month for a 40-year-old.
2. Sun Life – SunUniversal Life II
Sun Life’s SunUniversal Life II is an excellent choice for those looking for permanent coverage combined with wealth accumulation. This plan offers both guaranteed and market-linked investment options, making it a strong choice for professionals and business owners looking to leave a legacy.
Ideal For: Business owners, high-income earners, estate planners.
Strength: Diverse investment options, long-term performance.
Limitations: Premiums can be higher for younger policyholders.
Estimated Premium: About $95/month for a 35-year-old.
3. Canada Life – My Par Accumulator UL
Canada Life’s My Par Accumulator UL offers a unique hybrid approach by combining universal life insurance with participating features. This plan allows policyholders to receive dividends from the insurer’s surplus, making it an excellent option for those looking to create a legacy or plan for charitable giving.
Ideal For: Legacy planners, high-net-worth individuals.
Strength: Tax-deferred growth, strong dividend history.
Limitations: Less flexibility after funding is complete.
Estimated Premium: Around $120/month for a 45-year-old.
4. iA – EquiBuild UL
iA’s EquiBuild UL stands out for its early-stage wealth-building structure, including a “Wealth Bonus” that accelerates cash value growth in the first 10 years. This makes it an ideal option for individuals looking to tap into their policy’s value before retirement.
Ideal For: Retirement planners, individuals needing early cash access.
Strength: Accelerated cash value growth in the early years.
Limitations: Somewhat conservative investment options.
Estimated Premium: $90/month for a 40-year-old.
5. RBC – RBC YourTerm UL
RBC’s YourTerm UL is a term life policy that converts to a universal life policy without requiring a medical exam. It’s an ideal option for young adults or families looking for affordable coverage that can evolve into more comprehensive protection as they age.
Ideal For: Young adults, new families.
Strength: Easy conversion to permanent insurance, no medical exam required.
Limitations: Premiums increase substantially after conversion.
Estimated Premium: $110/month after conversion.
6. Desjardins – UL Investment Account
Desjardins’ UL Investment Account is perfect for individuals seeking a simple and cost-effective UL policy. This plan offers guaranteed interest and indexed funds, making it suitable for individuals who prefer a no-fuss approach to life insurance and wealth accumulation.
Ideal For: Long-term planners, those seeking simplicity.
Strength: Cost-effective, easy to manage.
Limitations: Fewer investment options and riders.
Estimated Premium: $75/month for a 35-year-old.
7. Equitable Life – Equation Generation IV
Equitable Life’s Equation Generation IV offers a conservative approach to universal life insurance, with guaranteed interest accounts and equity-indexed options. It’s ideal for those who prioritize stability and want to avoid market volatility.
Ideal For: Conservative investors, those seeking stable returns.
Strength: Low-risk, stable performance.
Limitations: Fewer growth-oriented investment options.
Estimated Premium: $88/month for a 40-year-old.
8. Empire Life – Optimax Wealth UL
Empire Life’s Optimax Wealth UL is a solid choice for individuals seeking a UL plan that combines wealth growth with protection. It includes a wide range of investment options and riders, making it perfect for professionals and business owners.
Ideal For: Business owners, high-income professionals.
Strength: Strong rider support, tax-advantaged growth.
Limitations: Higher premiums, not widely distributed.
Estimated Premium: $105/month for a 38-year-old.
9. BMO – UL Investment Plan
BMO’s UL Investment Plan offers a straightforward and predictable option for those seeking stable growth. This plan includes both market-linked and fixed-interest investment options and is ideal for people who prefer simplicity and transparency.
Ideal For: Bank customers, mid-career earners.
Strength: Clear projections, flexible rider options.
Limitations: Slower early cash value growth.
Estimated Premium: $92/month for a 35-year-old.
10. iA Excellence – Indexed UL
iA Excellence’s Indexed UL is an affordable option for first-time UL buyers, offering access to indexed equity and fixed-income accounts. It’s a great choice for younger individuals or those with unpredictable incomes who want to start building wealth through life insurance.
Ideal For: First-time buyers, younger adults, gig workers.
Strength: Budget-friendly, easy entry point.
Limitations: Limited active investment options, fewer riders.
Estimated Premium: $78/month for a 30-year-old.
Why Choose Universal Life Insurance in 2025?
Universal life insurance offers flexibility that traditional life policies lack. With the ability to adjust premiums, death benefits, and investment strategies, UL plans are a smart choice for Canadians looking to secure long-term financial protection while building wealth. Whether you’re saving for retirement, managing estate planning, or seeking a flexible insurance option, a UL policy can be tailored to meet your specific needs.
How to Compare Universal Life Insurance Plans
When comparing UL policies, consider your financial goals, risk tolerance, and how much control you want over your investment options. Ask for policy illustrations, understand potential hidden fees, and speak with a licensed advisor to get a clear picture of how each policy will align with your long-term objectives.
Final Thoughts
Universal life insurance offers a unique blend of protection and investment opportunities, making it an attractive option for Canadians seeking flexible financial solutions. Whether you’re looking for stable growth, early liquidity, or tax-sheltered wealth accumulation, there’s a UL plan that fits your needs. The key is to choose the one that aligns with your financial goals and comfort level with managing investments.
