When clients come to Carrie asking about life insurance, the first decision is usually: term or permanent? There's no universally correct answer — both types of coverage serve important purposes. The right choice depends on your age, your goals, your budget, and your family's situation.
What is term life insurance?
Term life insurance provides coverage for a specific period — typically 10, 20, or 30 years. If you die during the term, your beneficiaries receive the tax-free death benefit. If the term expires and you're still alive, the coverage ends (though most policies offer renewal or conversion options).
Key characteristics:
- Lowest cost for the highest amount of coverage
- Straightforward: you pay premiums, your family gets the death benefit if you die within the term
- Premiums are fixed for the duration of the term
- No cash value buildup — if you don't die during the term, you receive nothing back
- Convertible: most Sun Life term policies can be converted to a permanent policy without medical evidence
What is Sun Life Par insurance?
Participating whole life insurance — or 'Par' — provides permanent, lifelong coverage. Premiums are higher than term, but you're building a policy that never expires, accumulates guaranteed cash value, and participates in Sun Life's dividend experience. It's simultaneously an insurance policy and a wealth-building tool.
- Permanent: covers you for life, never expires regardless of health changes
- Cash value: the policy accumulates a growing guaranteed cash value you can access through loans or surrender
- Dividends: Sun Life Par policies share in the company's participating fund experience — dividends can increase the death benefit and cash value over time
- Estate planning: the death benefit passes tax-free to beneficiaries and can be used to fund estate equalization
- Tax shelter: the policy grows in a tax-advantaged way — particularly valuable for business owners with retained earnings
Side-by-side comparison
| Feature | Term life | Sun Life Par |
|---|---|---|
| Coverage period | 10, 20 or 30 years | Lifetime |
| Monthly premium (example $500K) | ~$50–$100/month at 40 | ~$400–$700/month at 40 |
| Cash value | None | Yes — grows over time |
| Annual dividends | No | Yes — participates in Sun Life fund |
| Best for | Income replacement, mortgage | Estate, wealth transfer, business owners |
| Complexity | Simple | More complex — worth understanding fully |
| Convertible to permanent? | Yes (most policies) | Already permanent |
Who should choose term?
- Young families who need maximum coverage at the lowest cost
- Those with a mortgage or significant debts that need to be covered if they die
- People protecting income replacement during their working years
- Those on a tight budget who need coverage now but can buy permanent later
- Business owners needing temporary key person or buy-sell coverage
Who should choose Sun Life Par?
- Those with permanent insurance needs — estate planning, business succession, estate equalization for heirs
- Business owners who want to build tax-sheltered wealth inside a permanent policy using retained corporate earnings
- High-net-worth individuals who want a tax-efficient way to transfer wealth to the next generation
- Those who want guaranteed coverage that can never be taken away due to health changes
- Clients looking for a conservative, guaranteed component in their overall wealth plan
Carrie's approach: For most young families, term insurance is the right starting point — maximum coverage at the lowest cost during the years when your family is most financially exposed. As wealth grows and needs evolve, adding a Par policy for estate and wealth-transfer purposes often makes sense. Many of Carrie's clients have both. Book a conversation to find out what's right for your situation.
Carrie Wang
Carrie is the founder of Seven Lakes Financial Services Inc. and a Sun Life advisor serving clients across Ontario and Saskatchewan. She specializes in retirement, estate, and investment planning, with a warm, personalized approach. She is fluent in English, Mandarin, and Taiwanese.