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- Equitable whole life insurance ensures lifelong protection with guaranteed death benefits and cash value growth
- The company offers customizable policies with multiple payment plans and riders like critical illness and disability waivers
- The Equimax Estate Builder plan focuses on legacy, while Equimax Wealth Accumulator prioritizes cash value growth
- With Equimax, individuals can enjoy tax-deferred growth and tax-free death benefits for added financial security
- What are the key features of Equitable's whole life insurance?
- What is Equimax by Equitable Canada?
- How does Equimax's participating whole life insurance work?
- What are the different Equitable whole life insurance plans to choose from?
- How much does Equitable Life whole life insurance cost?
- Why should you purchase Equitable Life whole life insurance for children?
- How are whole life insurance dividends determined by Equitable?
- Which Equitable whole life plan type is right for you?
- What is the Living Benefit offered by Equimax whole life insurance?
- What are the additional riders available with Equitable's Equimax whole life insurance?
- What are the pros and cons of Equitable's whole life insurance policy?
- How to get the best whole life insurance quotes in Canada?
- Frequently asked questions
Securing your financial future and protecting your loved ones doesn’t have to be complicated. Imagine a life insurance plan that provides peace of mind with guaranteed coverage and grows in value over time, serving as a financial asset you can count on. That’s exactly where Equitable whole life insurance comes in!
Equitable Life has positioned itself as Canada’s leading whole life insurance provider, blending protection with growth and making it an attractive choice for individuals and families alike. In this review, we’ll explore Equitable’s whole life insurance – its features, benefits, and why it might be the right fit for your financial goals.
What are the key features of Equitable’s whole life insurance?
Equitable offers participating whole life insurance for individuals looking to safeguard their financial future. These insurance options can be availed by individuals within 80 years of age and have a minimum coverage range of $10,000 (for single policies). Policy loans and dividends are available in Equitable’s whole life insurance, with varying degrees of tax advantage. Find out more below:
Key features of whole life insurance from Equitable Life
| Category | Details |
| Policy type | Whole life insurance |
| Cash value accumulation | Available. Can be accessed after the first year of purchasing the policy |
| Maximum issue age | 80 years |
| Coverage amount range | $10,000 to no maximum |
| Dividend options | Paid-up additions, enhanced protection, or paid in cash/held on deposit |
| Policy loan availability | Available |
| Tax benefits | Tax-advantaged growth of cash value |
| Payment flexibility | Life pay, 10 years, and 20 years payment options available |
| Additional riders | Disability waiver of premium, critical illness, Excelerator Deposit Option (EDO) |
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What is Equimax by Equitable Canada?
Equimax by Equitable Life of Canada is a participating whole life insurance product that combines lifelong protection with cash value growth. Equimax provides policyholders with guaranteed coverage, stable premiums, and the potential for financial growth through participating dividends.
It is offered in two variations of plans for people with varied requirements: Equimax Estate Builder and Equimax Wealth Accumulator.
How does Equimax’s participating whole life insurance work?
Participating whole life insurance policies by Equitable provide lifelong coverage for individuals, along with guaranteed cash value, fixed premiums, and flexible rider options.
- Lifelong protection: Provides permanent coverage for the insured as long as premiums are paid, ensuring peace of mind for the policyholder and their beneficiaries
- Guaranteed cash value: Builds cash value over time, which can be accessed through policy loans or withdrawals to meet financial needs
- Fixed premiums: Ensures consistent payments throughout the life of the policy, making long-term budgeting easier
- Flexibility with riders: Allows policyholders to customize their coverage with optional riders such as critical illness coverage or accidental death benefits
- Tax-advantaged growth: Cash value accumulates on a tax-deferred basis, and the death benefit is typically tax-free to beneficiaries
What are the different Equitable whole life insurance plans to choose from?
Equitable Life offers two primary whole life insurance plans, Equimax Estate Builder whole life plan and Equimax Wealth Accumulator plan, each designed to meet different financial and protection goals. While Equimax Estate Builder focuses on building long-term wealth, Equimax Wealth Accumulator prioritizes accumulating significant cash over a shorter time frame.
Here’s an overview of these plans and a comparison table to help you make an informed decision.
Key differences between Equimax Estate Builder and Equimax Wealth Accumulator
| Feature | Equimax Estate Builder | Equimax Wealth Accumulator |
| Primary focus | Maximizing long-term death benefit for beneficiaries | Cash value growth and financial flexibility |
| Cash value growth | Slower initial growth; focuses on long-term benefits | Rapid growth; accessible earlier |
| Death benefit growth | High, designed for estate planning and legacy goals | Moderate, balanced with cash value focus |
| Ideal for | Estate planning and legacy building | Retirement planning and liquidity needs |
| Access to funds | Limited in early years but grows over time | Available earlier via loans or withdrawals |
How much does Equitable Life whole life insurance cost?
The cost of Equitable whole life insurance is influenced by various factors, including the individual’s age, gender, health status, coverage amount, and the specific plan selected.
To illustrate, let’s explore how the death benefit and cash value might differ for a 35-year-old, non-smoker, male opting for a 20-Pay Equimax Estate Builder whole life plan or Equimax Wealth Accumulator policy, paying $10,000 as an annual premium.
Cash benefits of an Equimax Estate Builder
| Age | Annual dividend | Cash value | Death benefit |
| 40 years | $1,846 | $7,562 | $394,916 |
| 50 years | $7,069 | $184,187 | $531,571 |
| 60 years | $14,099 | $389,805 | $782,338 |
| 70 years | $24,762 | $715,682 | $1,120,579 |
| 80 years | $44,515 | $1,243,427 | $1,609,758 |
| 90 years | $69,389 | $2,020,478 | $2,317,661 |
| 100 years | $76,830 | $3,170,490 | $3,170,490 |
*Projected cash value for a 35-year-old, non-smoker, male opting for a 20-Pay with a $10,000 annual premium
Cash benefits of Equimax Wealth Accumulator
| Age | Annual dividend | Cash value | Death benefit |
| 40 years | $2,089 | $47,345 | $348,887 |
| 50 years | $6,638 | $180,369 | $482,716 |
| 60 years | $12,287 | $352,196 | $707,232 |
| 70 years | $21,658 | $640,172 | $1,002,712 |
| 80 years | $38,986 | $1,105,118 | $1,431,175 |
| 90 years | $60,632 | $1,789,141 | $2,050,563 |
| 100 years | $67,605 | $2,795,309 | $2,795,309 |
*Projected cash value for a 35-year-old, non-smoker, male opting for a 20-Pay with a $10,000 annual premium
How can you pay for Equitable whole life insurance?
Equitable Life provides three main payment options for their Equimax whole life insurance policies: Life Pay, 10 Pay, and 20 Pay. Each of these payment options can be beneficial to different individuals based on their unique situation.
- Life Pay: This option requires premiums to be paid throughout the policyholder’s lifetime or until death. It’s designed for those who prefer lower annual payments spread over a longer period
- 10 Pay: In this scenario, the premiums are paid for only 10 years, after which the policy is fully paid up. This option is ideal for individuals who want to secure lifelong coverage quickly and have the financial resources to afford higher annual payments
- 20 Pay: This option allows policyholders to complete premium payments over 20 years. It balances affordability and early completion, making it suitable for those who want to avoid lifetime payments but prefer a payment period longer than 10 years
Why should you purchase Equitable Life whole life insurance for children?
By purchasing Equitable’s whole life insurance policies for your child or grandchild, you’re giving them more than just lifelong coverage—you’re setting the foundation for their financial future. Equitable Life whole life insurance for children offers permanent coverage at children’s rates, with paid-up options in 10 or 20 years.
It provides tax-advantaged cash value growth, offering financial flexibility through loans or withdrawals for future needs. Also, ownership can transfer tax-free to the child upon adulthood, securing their financial foundation.
For example, if you buy a 20-pay whole life insurance for a 5-year-old child at an annual premium of $1,200, the policy’s value will continue to grow without any further premium payments after the first 20 years.
Let us take a look at the projected cash value and death benefit for this policy:
Cash benefits of Equimax plans for children
| Age | Cash value | Death benefit |
| 20 years | $16,418 | $180,243 |
| 30 years | $35,188 | $207,262 |
| 40 years | $69,525 | $295,443 |
| 50 years | $129,385 | $401,600 |
| 60 years | $233,108 | $534,614 |
| 70 years | $407,992 | $712,692 |
*Projected cash value and death benefit for a 5-year-old female with a 20-pay policy and $1,200 annual premium
By simply paying $100 a month, parents can now secure the financial future of their children, ensuring they have enough coverage to fund important life events as well as emergencies and can also leave a fortune behind for their future generations.
Source: Equitable Life
Does Equimax help with tax payouts during death?
Yes, Equimax Estate Builder whole life plan can help with tax payouts upon death. This specific plan is designed to provide a larger death benefit, which can be used to offset estate taxes and other final expenses.
The death benefit is typically paid out tax-free to beneficiaries, providing them with the funds needed to settle the estate without the burden of additional tax liabilities.
The Equimax Estate Builder whole life plan provides a death benefit that can be used to:
- Cover estate taxes: The death benefit can help beneficiaries pay for estate taxes, ensuring the full value of the estate is passed on without forcing them to liquidate assets
- Leave a legacy behind: The policy ensures that the financial legacy you leave behind remains intact, allowing your beneficiaries to inherit more
How are whole life insurance dividends determined by Equitable?
Equitable Life’s whole life insurance dividends are determined by the performance of its Participating (PAR) account. The financial performance of PAR accounts can depend on factors like investment returns, mortality payouts, premium lapses, and tax obligations.
Strong investment performance, fewer claims, and lower premiums lapsing can lead to higher dividends, while the opposite may result in lower payouts.
Dividends are paid at the sole discretion of Equitable Life’s board of directors. As such, dividends can vary from year to year depending on the insurer’s performance. The decision to distribute dividends is made with the aim of ensuring steady, predictable returns while minimizing volatility.
Take a look at the average dividend scale returns by Equitable’s participating accounts and interest rates over the last 30 years:
Equitable Life dividend scale over 30 years
| Timeframe | Equitable PAR account return | Equitable dividend scale interest rate |
| 5 years | 6.52% | 6.15% |
| 10 years | 6.26% | 6.37% |
| 20 years | 6.79% | 6.95% |
| 30 years | 7.35% | 7.72% |
| Standard deviation over 30 years | 1.79% | 1.31% |
Source: Equitable dividend scale interest rate, 2024
Which Equitable whole life plan type is right for you?
Equitable’s Estate Builder and Wealth Accumulator plans are built to suit the diverse needs of policyholders. From long-term goals to immediate cash value accumulation, individuals can choose the right Equimax plan for them based on their individual needs.
Here’s how you can determine the right policy for yourself:
| What to look for | Equimax Estate Builder | Equimax Wealth Accumulator |
| If you are looking for higher long term benefits for planning your estate | ✓ | ✘ |
| If you’re looking for a higher death benefit that can reduce tax burden for your next of kin during transfer of property | ✓ | ✘ |
| If you’re looking for affordable insurance coverage to secure the financial future of your children or grandchildren | ✓ | ✓ |
| If you’re looking to build immediate cash value to start a business | ✓ | ✓ |
| If you’re looking to make philanthropic donations but also reduce your tax implications now and in the future | ✓ | ✓ |
| If you’re looking to create a steady retirement fund | ✓ | ✓ |
| If you’re looking for quick access to higher cash value through a policy loan or collateral loan | ✘ | ✓ |
Source: Equitable Life
What are the various dividend options on an Equimax whole life insurance plan?
Equitable’s participating whole life insurance has several dividend options to choose from including cash payout, premium reduction, paid-up additions, on-deposit, and enhanced protection.
- Paid in cash: Dividends are paid directly to you annually in cash but may have tax consequences, requiring reporting as income
- Premium reduction: Dividends are applied to reduce your current policy premium, with potential tax implications
- Paid-up additions: Dividends are used to purchase additional participating paid-up insurance, which is payable alongside the death benefit
- On deposit: Dividends are deposited with Equitable Life and accumulate with compound interest, with interest reported as income
- Enhanced Protection: Dividends are used to purchase one-year term insurance for single life policies, with any excess used to buy paid-up additions
What is the Living Benefit offered by Equimax whole life insurance?
The Living Benefit offered by Equimax whole life insurance allows policyholders to access a portion of their policy’s cash value if the life insured becomes severely disabled due to a physical or mental impairment.
This benefit can be applied once per policy year and is subject to Equitable Life’s administrative guidelines. Any payment made under the Living Benefit will reduce the policy’s death benefit.
Individuals suffering from life-threatening conditions such as cancer, AIDS, coronary artery disease, myocardial infarction, chronic kidney or liver failure, Alzheimer’s disease, etc can be eligible to receive Living Benefits under their whole life insurance policy. Also, the insured individual must have been impaired for a period of 90 days significantly affecting their day-to-day life, and their ability to continue employment.
Can a person with pre-existing conditions be eligible for the Living Benefit of a whole life insurance policy?
No, a person with pre-existing conditions may not be eligible for the Living Benefit under Equitable’s whole life insurance policy if the condition existed at the time the policy was first issued or at the date of the last reinstatement.
What are the additional riders available with Equitable’s Equimax whole life insurance?
Whole life insurance by Equitable has customization options along with various riders such as critical illness, additional term life insurance, disability waiver, and more. Insured individuals can choose from these options to further enhance their chances for a higher payout in case of severe illness or disability.
- Disability waiver of premium rider: Waives premiums if the policyholder becomes disabled, ensuring continued coverage without financial strain
- Term life insurance rider: Available only with single policies, this allows you to add term life insurance coverage to your whole life policy, providing additional protection within a single plan
- EquiLiving critical illness rider: Offers financial protection in the event of a severe illness, allowing you to access benefits for medical or living expenses
- Excelerator Deposit Option (EDO): Enables you to make lump-sum contributions to your policy, boosting its cash value and increasing your death benefit
Who should invest in Equitable Life whole life insurance policy?
Equimax participating whole life insurance by Equitable Life offers a versatile solution for individuals with diverse financial goals. Whether you’re planning to leave a legacy, protect your wealth, manage debts, or secure a financial foundation for your children or grandchildren, this policy provides lifelong coverage and the opportunity to grow cash value. Its flexibility and tax-advantaged features make it an excellent choice for long-term planning.
Equimax can be a great option for:
– Estate planners aiming to create a financial legacy for loved ones or charities
– Wealth protectors looking to preserve and pass on their hard-earned assets
– Individuals ensuring their taxes and debts are covered after their passing
– Investors wanting to grow wealth with tax-deferred savings and accessible funds
– Parents or grandparents securing protection and future wealth for children or grandchildren
What are the pros and cons of Equitable’s whole life insurance policy?
Equitable has several advantages such as lucrative riders, availability for a collateral loan, multiple dividend payout options, and tax-free death benefits. However, there are some disadvantages such as the non-availability of a non-participating whole life insurance option, higher premium costs, and slow cash value growth during the initial days of the Equitable Estate Builder plan.
Pros and cons of Equitable whole life insurance
| Pros | Cons |
| EquiLiving Critical Illness Rider provides a lump-sum payout for covered illnesses to cover medical costs or support recovery | This policy has higher premiums compared to term insurance, making it less accessible for tight budgets |
| Excelerator Deposit Option allows additional tax-deferred contributions to enhance the policy’s cash value growth | Equitable does not have a non-participating whole life insurance option to choose from |
| Variable dividend options provide flexibility to increase the death benefit, reduce premiums, earn interest, or receive cash | It is not ideal for short-term goals or individuals seeking immediate returns |
| Tax-advantaged growth offers long-term savings potential and typically tax-free death benefits for beneficiaries |
How to get the best whole life insurance quotes in Canada?
When it comes to finding the best whole life insurance quotes in Canada, you have a few options. You could spend hours browsing different websites and comparing policies on your own, but that can quickly become overwhelming and time-consuming. This is where PolicyAdvisor comes in!
What sets PolicyAdvisor apart is not just the competitive pricing and multiple options to choose from, but also the lifetime after-sales support. After you’ve secured your policy, you’re not left on your own. Our team of expert advisors is always available to help with any questions or adjustments you need, ensuring you have ongoing support every step of the way. It’s a stress-free way to get the best coverage while knowing you’re always taken care of, now and in the future.
Frequently asked questions
Can I transfer ownership of my Equitable whole life insurance policy to my children or grandchildren?
Yes, Equitable allows you to transfer ownership of your whole life insurance policy to your children or grandchildren when they reach the age of majority.
This is a great way to start building generational wealth, as they can access the policy’s cash value for future expenses such as education or a down payment on a house.
Can I add extra coverage to my Equitable whole life insurance policy in the future?
Yes, Equitable offers various options to increase your coverage over time. With features like paid-up additions, you can use dividends to purchase additional life insurance, increasing your death benefit and cash value. This flexibility allows you to tailor your policy as your life circumstances evolve, ensuring that you always have the coverage you need.
What happens to my Equitable whole life policy if I stop making premium payments?
If you stop making premium payments on your Equitable whole life policy, it won’t necessarily lapse immediately. The policy’s cash value can be used to cover the premiums for a period of time, depending on how much cash value you’ve accumulated.
However, once the cash value is exhausted, your coverage may likely end. It’s important to keep track of your policy’s status from time to time.
Equitable Life’s whole life insurance offers lifelong coverage, guaranteed cash value, and tax-advantaged growth, making it an appealing option for long-term financial planning. With flexible plans like Equimax Estate Builder and Wealth Accumulator, policyholders can customize coverage for estate planning or wealth accumulation.
