Key takeaways: Whole life insurance is a type of permanent life insurance that offers lifelong coverage. In Canada, whole life insurance is a type of permanent life insurance that offers lifelong coverage. Whole life insurance is usually pricier than term life insurance, sometimes up to 7.5 times more.

 Whole life insurance policies are ideal for high earners seeking tax-deferred saving options. But for most Canadians wanting financial security, term insurance might be a better choice. Whole life insurance, explained You may have heard the term “set it and forget it” 

when talking about whole life insurance. With a tax-free death benefit and guaranteed cash value growth, a whole life policy can seem like the best coverage option at first glance. There’s a lot to know about whole life insurance. But for starters, here are five key things you should know about whole life insurance: what is whole life insurance Whole life insurance policy is a lifelong policy that stays active as long as you pay your premiums. The premiums for whole life insurance are fixed but higher than term life insurance due to the investment feature and longer coverage period. A whole life insurance policy consists of two parts: the death benefit and potential cash value. If you cancel, there will no longer be a payout for your family or loved ones, but you can withdraw the cash value (minus any fees and penalties). This is called the cash surrender value. While whole life insurance can be used for estate planning and investment, it's often not the best fit for the average Canadian's financial needs. What is whole life insurance? Whole life insurance is a type of permanent life insurance, meaning that it provides coverage over your entire life. Permanent life insurance is one of the two main types of life insurance, with the other being term life insurance. Short on time? Insurance advisors Erik Heidebrecht and Tobin Tuff take you through the fundamentals of whole life insurance in this video: