Do You Know the Paid-Up Insurance Value of Your Policy?

What if you could keep your life insurance for life — without paying another premium?

Many people think life insurance requires lifelong premium payments. But that’s not always the case. Depending on your policy type and how long you’ve owned it, you may be able to keep your coverage permanently — even if you stop paying. This is made possible through what’s known as your paid-up insurance value.

What is Paid-Up Insurance?

Paid-up insurance refers to the cash value that has accumulated in a whole life or participating life insurance policy over time. Once that cash value reaches a certain amount, it can be used to pay for all future premiums, allowing your policy to stay active for the rest of your life — no more out-of-pocket payments required.

In other words, your policy becomes “self-sustaining.” The value built up inside it works for you, covering costs automatically while your coverage and death benefit remain intact.

How Does It Work?

When you pay premiums on a whole life policy, a portion of each payment goes into building your policy’s cash value. Over the years, that value can grow through dividends and interest, depending on your insurer’s performance.

Once it reaches a high enough amount, you can:

• Convert it into paid-up insurance, meaning you stop paying but keep lifelong coverage.
• Use dividends to offset future premium payments.
• Withdraw or borrow against the cash value if needed.

Your insurance advisor can calculate how much paid-up value your policy has and whether you’ve already reached the point where premiums are no longer required.

Why It Matters

Understanding your paid-up insurance value is essential because it could help you:

• Maintain protection for your family or business without ongoing costs.
• Unlock flexibility during retirement or financial transitions.
• Preserve long-term wealth while keeping your estate plan in place.

Many policyholders don’t realize they’ve built up enough value to go paid-up — and continue paying premiums unnecessarily.

Is Your Policy Eligible?

Not all life insurance plans qualify for this feature. Typically, whole life or participating policies have paid-up options. Term life policies do not.

If you’re unsure about your eligibility or want to know your current cash value, it’s a good idea to review your policy with a licensed financial advisor.

Talk to an Advisor

If you’re wondering whether your life insurance could go paid-up — or if you simply want to understand your options better — our Advisor, Phillip can help.

We’ll review your current policy, explain your available options, and ensure your coverage aligns with your goals for financial security and legacy planning.

15 Key Takeaways from Canada’s 2025 Federal Budget

A summary of Finance Minister François-Philippe Champagne’s first fiscal plan

Canada’s Finance Minister, François-Philippe Champagne, presented his first federal budget on November 4, 2025. Prior to the release, few details were shared publicly other than Prime Minister Mark Carney’s promise to balance fiscal restraint with targeted investments. Now that the full document has been tabled, here are fifteen major points to understand.

1. A Budget Focused on the Economy

Budgets typically lean in one of two directions: economic stimulus or tax adjustments. This year’s plan clearly falls in the first category, emphasizing major investments and growth initiatives over new or significant tax changes. Most tax measures were already known from previous announcements.

2. A Large Deficit Ahead

The federal deficit for 2025–2026 is projected at $78.3 billion, the highest shortfall since the pandemic. However, much of this is tied to long-term investments rather than ongoing operating costs.

2. A Large Deficit Ahead

3. Breaking Down the Spending

The government separates its expenditures into operational and capital categories. Of the total deficit, roughly $33 billion comes from operational spending and $45 billion from capital investments, which the minister described as “generational.” The goal is to balance the operational portion of the budget by 2028–2029.

4. Where the Money Goes

Over the next five years, the federal plan allocates funding to four major investment areas:

Housing: $25 billion

Infrastructure: $115 billion

Productivity and competitiveness: $110 billion

Defence and security: $30 billion

5. Introducing the “Productivity Super-Deduction”

To encourage business investment, a new productivity super-deduction will allow companies to immediately write off a larger share of eligible capital investments. The government expects this measure to support modernization and expansion across industries.

6. Reducing Public Service Costs

The federal workforce will be gradually reduced from 368,000 to 330,000 employees by 2028–2029, mainly through retirements and voluntary departures. This initiative aims to save about $13 billion per year, while also slowing the growth of direct program spending to under 1% annually (currently around 8%).

7. Ending the Luxury Tax on Aircraft and Boats

The government plans to eliminate the luxury tax on private aircraft and watercraft immediately after Budget Day, citing negative impacts on the aviation and marine manufacturing industries.

8. Lower Personal Income Tax Rate

As confirmed in Bill C-4, the lowest federal income tax rate dropped from 15% to 14% on July 1, 2025. This provides tax savings of up to $420 per individual or $840 per couple, primarily benefiting lower-income earners.

9. GST Relief for First-Time Home Buyers

To make homeownership more affordable, first-time buyers of new homes valued up to $1 million will be exempt from the GST. Homes priced between $1 million and $1.5 million will receive a partial GST reduction.

10. Easier Banking Transitions

The budget includes regulatory changes designed to simplify how customers move accounts between federally regulated financial institutions, reducing barriers to switching banks.

11. Additional EI Support for Bereaved Parents

Parents receiving Employment Insurance parental benefits will be eligible for an extra eight weeks of support if their child passes away, offering added financial relief during bereavement.

12. Tax Credit for Personal Support Workers

A new temporary refundable tax credit of up to $1,100 per year (5% of eligible earnings) will be available to qualified personal support workers employed in healthcare settings. The credit primarily supports lower-income and racialized workers, many of whom are women or newcomers.

13. Automatic Tax Filing for Low-Income Canadians

The Canada Revenue Agency will begin automatically filing tax returns for eligible lower-income Canadians. This will ensure up to 5.5 million people receive their entitled benefits by the 2028 tax year.

14. Easier Access to the Canada Disability Benefit

Recipients of the Canada Disability Benefit will receive a $150 one-time payment to help cover certification costs. The annual benefit remains at $2,400, and this supplement will be available through 2026–2027.

15. The Return of the Canada Strong Pass

The Canada Strong Pass program—which offers free or discounted access to national parks, museums, galleries, and VIA Rail travel—will be renewed for the 2025 holiday season (December 12 to January 15) and again next summer.

This budget introduces a new tradition of fall releases rather than spring ones. For full details, visit the Government of Canada’s official website.