Whole life insurance is a life insurance policy which is guaranteed to remain in force for the insured entire lifetime, provided required premiums are paid.

Because whole life policies are guaranteed to remain in force as long as the required premiums are paid, the premiums are usually much higher than those of term insurance.

Whole life premiums are fixed based on age, and does not the increase with age.

The insured usually pays premium until death except for a limited pay policies such as 10 pay, or 20 pay.

The death benefit of a whole life policy is normally the stated face amount. However, if the policy is participating, the death benefit may increase by any accumulated dividend values. The dividend is not always guaranteed but most life insurance companies in Canada have a track record of paying a dividend each year to participating policy holders.

Non-participating whole life insurance policies do not pay dividends.

Whole life policies also have cash value but the cash value is very valuable over the long term.