The shortlist — and how we got there
There are 25+ life insurers operating in Canada. For an incorporated business owner using insurance as a tax-mitigation and estate-funding tool, the real shortlist is much smaller — and it depends almost entirely on the strategy the policy has to support.
Goald & Co is an independent insurance brokerage, not a captive agent. We are contracted with every major Canadian life insurer, which means we have no quota with any one carrier and no incentive to push one brand over another. This guide reflects how we actually choose between them when a client walks in with a real situation — surplus inside an opco or holdco, a sale on the horizon, an estate that needs liquidity, or a banking relationship that needs collateral.
How we actually pick a carrier for a business owner
The honest answer is that "best" depends on what the policy has to do. The same client can be best served by Canada Life on a JLTD COLI policy, Equitable Life on a single-life IRP, and Manulife on an IFA — purely because of how each carrier's product is engineered. The criteria that matter:
- Dividend scale interest rate & history. A 6.35% current scale tells you almost nothing without context. What matters is the 30- and 40-year average, how the carrier responded through the 2008-2020 low-rate environment, and whether the dividend has ever been zero. The major Canadian par accounts have paid an uninterrupted dividend for 150+ years.
- Early cash value growth. For an IFA or IRP, the cash surrender value (CSV) curve in years 1-10 matters more than the long-run IRR. Equitable Life and some Manulife product configurations are typically strongest in the early years; Sun Life and Canada Life are smoother and stronger in years 15+.
- Lender acceptance for IFA / IRP collateral lending. The Big-5 banks and National Bank publish internal collateral lending schedules per carrier. Canada Life, Manulife and Sun Life are the most universally accepted. Equitable Life and Empire Life are accepted by certain lenders but on a more bespoke basis.
- Underwriting appetite. Carriers differ materially on smokers, foreign nationals, complex finances, large face amounts ($10M+), private aircraft, and substandard ratings. We shop the case before binding.
- Adjusted Cost Basis (ACB) trajectory. ACB grinds down over time and determines how much of the death benefit flows to the Capital Dividend Account tax-free. Faster ACB grind = more CDA credit. This is product-specific, not carrier-wide.
- Service, illustration tools, and online policy access. Mundane, but matters every year for 30+ years of in-force management.
- Financial strength. All major Canadian life insurers are OSFI-regulated and required to maintain a LICAT ratio of at least 100%; the majors typically sit between 130% and 145%. Independent ratings (A.M. Best, S&P, DBRS) for the top carriers fall in the A+ to AA range.
The carrier choice should follow the strategy. We've seen owners locked into the wrong policy because someone led with a brand instead of a plan — and unwinding a 10-year-old corporate whole life policy is expensive and slow.
Participating whole life vs universal life
Before comparing carriers, the product type has to be right. For business-owner planning, the two real options are participating whole life (par WL) and universal life (UL). Term insurance has a place — usually as cheap personally-owned income replacement during working years — but it does not build the corporate asset, ACB, or CDA credit that drives COLI, IFA and IRP strategies.
| Feature | Participating Whole Life | Universal Life |
|---|---|---|
| Premium | Guaranteed, level, contractually required. | Flexible within a min/max corridor. |
| Cash value driver | Annual dividend declared by the carrier on the par account. | Investment account selected by the owner (GIC-like, indexed, managed funds). |
| Return profile | Smoothed, low volatility, guaranteed floor. | Variable, mirrors the chosen investment. |
| Lender acceptance for IFA / IRP | Universally accepted at favourable LTV (typically 90% of CSV). | Accepted but at lower LTV and fewer lenders. |
| Best fit for | COLI, IFA, IRP, estate funding, intergenerational planning. | Owners who want explicit investment control or lowest-cost level death benefit. |
Almost every corporate-owned tax-mitigation strategy we structure uses participating whole life. UL has a role, but it is the exception not the rule.
2026 dividend scale across the major par accounts
The dividend scale interest rate is one input into the dividend formula — alongside mortality experience, expense experience, and policy lapse rates. It is not the policy's investment return, and comparing scales between carriers requires care because each computes it differently. That said, the relative position of each carrier and the long-run trend matters.
| Carrier | Par account opened | 2026 scale | ~40-yr avg | Uninterrupted dividend since |
|---|---|---|---|---|
| Canada Life | 1847 (Open Block, post-2003 also) | 6.00% | ~8.0% | 1848 (175+ years) |
| Sun Life | 1865 | 6.25% | ~8.0% | 1872 (150+ years) |
| Manulife | 1887 (closed and open blocks) | 6.00% | ~7.9% | 1887 (135+ years) |
| Equitable Life | 1936 | 6.35% | ~8.1% | 1936 (85+ years) |
| Empire Life | 1923 | 6.00% | ~7.8% | 1923 (100+ years) |
Scales as illustrated by each carrier in their 2026 dividend scale announcements. Long-run averages are approximate and provided for context only — they include the high-rate 1980s, the 2008-2020 low-rate compression, and the post-2022 normalization. Not a projection of future dividends.
Two takeaways. First, the current 6.00–6.35% range reflects the rate environment, not the relative quality of any carrier — when bond yields normalized after 2022 every major Canadian carrier increased its scale. Second, the long-run consistency matters more than any single year. None of these carriers has missed a dividend through two world wars, the Great Depression, 1980s inflation, the 2008 financial crisis, or COVID.
The carriers we actually use
Each profile below reflects how we use the carrier in practice — not a marketing summary. We've placed business with all of them; preference shifts case by case.
- Flagship par product
- My Par Gift / Wealth Achiever / Estate Achiever
- 2026 dividend scale
- 6.00%
- Strengths
- Largest par account in Canada by assets; longest dividend history; universal lender acceptance; strong long-duration CSV growth.
- Watchouts
- Early-year CSV is competitive but rarely the leader; underwriting on substandard cases can be conservative.
- We use it for
- Multigenerational estate funding, JLTD, large corporate cases, IFA structures with CIBC, RBC and BMO.
- Flagship par product
- Sun Par Protector / Sun Par Accumulator / Sun Par Accelerator
- 2026 dividend scale
- 6.25%
- Strengths
- Three par configurations let us tune death-benefit vs cash-value emphasis precisely; strong illustration software; well-regarded service.
- Watchouts
- Premiums on the largest face amounts can come in slightly higher than Equitable.
- We use it for
- Estate-bond style corporate transfers, IRP structures, JLTD where the client values a recognizable brand.
- Flagship par product
- Manulife Par (Performax Gold for legacy UL/par hybrid)
- 2026 dividend scale
- 6.00%
- Strengths
- Strong banking relationships across the IFA lender ecosystem; flexible Performax Gold product for owners who want some investment-account exposure inside a permanent contract.
- Watchouts
- Performax is a hybrid product — modelling it requires care; not the right tool for owners who want a pure participating contract.
- We use it for
- IFAs, COLI where the client banks with BMO or National Bank, hybrid par/UL needs.
- Flagship par product
- Equimax Estate Builder / Equimax Wealth Accumulator
- 2026 dividend scale
- 6.35%
- Strengths
- Typically the strongest early-year cash value in the market — material for IRPs and IFAs where the cash needs to do work in years 1-10; mutual company (no shareholders, surplus belongs to policyholders); high current dividend scale.
- Watchouts
- Smaller distribution footprint than the Big-3; fewer banking partners pre-approved for collateral lending.
- We use it for
- IRPs, accumulation-focused single-life par, owners who want a mutual carrier.
- Flagship par product
- EstateMax / Optimax Wealth
- 2026 dividend scale
- 6.00%
- Strengths
- Competitive on small and mid-size cases; responsive underwriting; long history of consistent dividend payments.
- Watchouts
- Less competitive on very large face amounts; narrower IFA lender acceptance.
- We use it for
- Mid-size corporate par, professional incorporations, cases where Big-3 underwriting was rigid.
- Flagship products
- Genesis (UL), Meridia (Par)
- Strengths
- Strong UL chassis with broad investment options; competitive on younger lives; flexible underwriting for entrepreneurs.
- Watchouts
- Par account is smaller and younger than the Tier-1 carriers; less common for IFA structures.
- We use it for
- UL cases, younger founders building long-horizon corporate wealth, owners with specific investment preferences.
- Flagship products
- RBC Growth Insurance (UL), RBC Term, Critical Illness suite
- Strengths
- Strong UL and term products; tight integration where the client already banks at RBC.
- Watchouts
- No participating whole life offering — limits use for COLI / IFA / IRP strategies that require par WL.
- We use it for
- UL, term, CI; rarely the answer for permanent par-based corporate planning.
- Flagship products
- BMO Insurance Whole Life (newer product), Wealth Accumulator UL
- Strengths
- Aggressive UL pricing; growing whole life suite; good bank-channel integration.
- Watchouts
- Whole life is newer with a shorter track record relative to the Tier-1 carriers.
- We use it for
- Select UL cases, occasional whole life where pricing is compelling.
Which carrier for which strategy
The fastest way to see how the shortlist changes depending on what the policy has to do:
| Strategy | Primary carriers | Why |
|---|---|---|
| COLI (Corporate-Owned) | Canada Life · Sun Life · Equitable | Long-duration CSV growth, full CDA credit at death, large face amounts well-supported. |
| IFA | Canada Life · Manulife · Sun Life | Strongest lender collateral acceptance; established programs at CIBC, BMO, RBC, NBC, TD. |
| IRP | Equitable · Canada Life · Sun Life | Early CSV strength matters for personal collateral loans in years 10-20; Equitable typically leads. |
| JLTD (Joint Last-to-Die) for estate funding | Canada Life · Sun Life · Manulife | Lowest premium per dollar of death benefit on two healthy lives; long track record on this contract type. |
| Mid-size corporate par ($1-3M face) | Empire · Equitable · Canada Life | Underwriting and pricing are most competitive in this band. |
| UL with investment flexibility | iA · Manulife (Performax) · BMO | Strongest UL chassis with the broadest investment account choices. |
| Personal term (income replacement) | iA · Canada Life · RBC · Empire | Pricing varies materially by age, smoker status and term length — we shop every case. |
Solvency, ratings and Assuris
Canadian life insurers are federally regulated by the Office of the Superintendent of Financial Institutions (OSFI) and required to maintain a Life Insurance Capital Adequacy Test (LICAT) ratio of at least 100% at the supervisory level. The major carriers typically operate between 130% and 145%, meaning they hold 30-45% more capital than the regulatory floor requires.
Independent agency ratings for the carriers above are clustered tightly:
| Carrier | A.M. Best | S&P | DBRS |
|---|---|---|---|
| Canada Life | A+ | AA | AA |
| Sun Life | A+ | AA | AA |
| Manulife | A+ | AA- | AA |
| Equitable Life | A | — | A (high) |
| Empire Life | A | — | A (high) |
| iA Financial | A+ | — | AA (low) |
Ratings as published by the agencies; subject to change. Not a recommendation. The differences between A and AA in this industry are small relative to the regulatory floor.
On top of OSFI capital rules, policyholders are backstopped by Assuris, the federally-incorporated not-for-profit that protects Canadian life insurance policyholders if a member carrier becomes insolvent. Assuris protections include 100% of monthly income up to defined limits, 85% (minimum) of death benefit, and 85% (minimum) of cash value — per insured, per company. No Canadian life insurer has ever required Assuris to step in for a corporate-owned permanent policy.
FAQ
No. The dividend scale interest rate is one input into the dividend formula and is computed slightly differently by each carrier. A 6.35% scale at one carrier is not directly comparable to a 6.00% scale at another. Long-run consistency, ACB trajectory, early-year CSV growth, and lender acceptance often matter more than the current-year scale.
Each has a place in the Canadian market — typically for personally-owned term, simplified-issue, or specific niches. For corporate-owned permanent insurance used in COLI, IFA and IRP strategies, the carriers profiled above represent the products we actually place. If a niche carrier is the right answer in a given case, we'll say so.
Through a commission paid by the carrier on first-year and renewal premium, plus a small annual service fee in some cases. Commission rates are largely standardized across the major carriers, which means we have no financial reason to favour one carrier over another. We disclose compensation on every plan.
Bank-channel insurance (creditor insurance, mortgage insurance, bank-issued term) is convenient but typically more expensive and less flexible than the same coverage from an independent brokerage. For business-owner permanent insurance, your bank can lend against the policy under an IFA — but the policy itself should be placed where the product engineering fits the strategy.
Joint Last-to-Die is a permanent insurance contract on two lives (usually spouses) that pays the death benefit only on the second death. The premium per dollar of death benefit is significantly lower than a single-life policy because the carrier only pays once both insureds are gone. JLTD is the standard tool for funding the deemed disposition on the second spouse's death — the large tax liability that crystallizes when assets pass out of a family holdco.
For incorporated owners with retained earnings inside a holdco, corporate ownership is almost always more efficient on permanent insurance because premiums are funded with cheaper after-tax corporate dollars and the death benefit credits the Capital Dividend Account on payout. Personal ownership keeps the proceeds outside the corporate estate and is the right answer for term policies designed for income replacement. Most owners run both: corporate par for long-horizon planning, personal term for working-year coverage.
Footnote
This publication is protected by copyright. Goald & Co Financial Inc. is not engaged in rendering tax or legal advice. This guide contains a general discussion of certain tax and legal developments and should not be construed as tax or legal advice. Should you wish to discuss this or any other Goald & Co guide, please contact info@goald.ca.
Continue with the related references.
Once you've picked the carrier, the next question is how the policy is deployed. The references below walk through each of the corporate-owned strategies the carriers above support.
A 30-minute strategy call.
Tell us how your corporate structure is set up and what the policy needs to do — fund the estate, collateralize a loan, supplement retirement, or all three. We'll show you which two or three carriers fit, and run live illustrations side by side.
Book a strategy callPrimary sources cited in this guide
Every link below points to the specific statute, CRA technical publication, form, or court decision that supports a factual claim made in this guide. Analysis, opinions, and illustrative figures are Goald & Co's own and are not attributed to these sources.
Disclaimer. Goald & Co Financial Inc. is a licensed independent life insurance brokerage in Canada. This guide is educational, reflects publicly available information and the author's professional experience placing corporate-owned permanent insurance with each carrier listed, and does not constitute a recommendation of any specific product. Dividend scale interest rates change annually and historical averages are not a projection of future dividends. Financial strength ratings are as published by the respective agencies and subject to change. Insurance product suitability depends on facts that must be reviewed individually; readers should consult a licensed insurance advisor, their accountant, and where appropriate, legal counsel before purchasing any policy.