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5 Pay PAR

Participating life insurance is a permanent product that offers the possibility to earn policy dividends inside the contract. The 5 Pay PAR can generate higher policy dividends in the long term.


5 Pay PAR is the only product of its kind in Canada with guaranteed premiums that is payable in 5 years.

When should you choose 5 Pay PAR?

5 Pay PAR is a unique product that suits:

  • People who will be retiring in the near future or anyone who wants to pay their premiums as quickly as possible, with no worries about paying premiums at retirement, while benefiting from long-term value growth.
  • Parents or grandparents who want to protect the insurability of their children or grandchildren and pay the entire premium before transferring the insurance policy to them when they reach adulthood. This product is an excellent solution for increasing RESP income and may ensure a child or grandchild's financial future, including the potential to fund education, without passing on the burden of premiums.
  • Business owners who do not want to have long-term financial obligations, to suit their business financial plan.

If you have any questions about this product, please contact your centre of expertise.

Primary characteristics

  • Enhanced insurance dividend option when the policy is issued
  • Guaranteed premiums payable over 5 years
  • Paid-up complementary coverage in 5 years (except for children's life protection and children's accidental fracture coverages)
  • Guaranteed cash surrender value on the basic insurance - available, but not guaranteed on insurance bought with Paid-up Additions (PUAs)
  • Change in dividend option available after 10 years if the tax-exempt test requirement has been met. Options available: cash payment, dividends on deposit and paid-up additions

Cash surrender values

Upon termination of the coverage, the member and client can be refunded either a portion of the paid premiums or more.

Upon termination of the coverage, your client can be refunded either a portion of the paid premiums or more.

Fiche produit

Issue age (age nearest)
  • 0 to 65 years

Amount of insurance
  • Minimum: $10,000 (excluding enhanced insurance)
  • Maximum:* $10,000,000 (including enhanced insurance)

*Maximum in illustration software.


The amount of insurance is standard and guaranteed.

Rate bands
  • $10,000 to $24,999
  • $25,000 to $49,999
  • $50,000 to $99,999
  • $100,000 to $249,999
  • $250,000 to $499,999
  • $500,000 to $999,999
  • $1,000,000 to $10,000,000

Premiums
  • Level, guaranteed and payable in 5 years
  • Maximum eligible rating is +200%

Policy fee
  • $40/year or $3.60/month

Cash surrender value
  • Guaranteed on basic life insurance coverage
  • Available, but not guaranteed on insurance purchased with paid-up additions (PUAs)

End of coverage
  • On death of the insured

Reduced paid-up insurance
  • No

Insured life options
  • Individual
  • Joint first-to-die (2 to 5 insureds)
  • Joint last-to-die (2 insureds)
  • Joint last-to-die, Paid-up first death (2 insureds)

Dividend options

At the time of sale:

  • Enhanced insurance with lifetime guarantee

These options are available after 10 years if the tax-exempt test requirement has been met:

  • Paid-up additions (PUAs)
  • Cash payment
  • Dividends on deposit

Consult the Dividends section for all the details.

Calculating dividends and projections

Consult the Dividends section for all the details.

Premium offset
  • No

Conversion privilege
  • No

Eligibility of conversions
  • Yes

Eligibility of conversions
  • Yes
  • Except from group insurance

Policy withdrawals
  • Yes

Automatic non- forfeiture option
  • Yes, automatic premium loan in the event of non-payment

Insurability privilege
  • Yes, with joint first-to-die coverage

Sales material

To order, complete and submit the marketing supply requisition form.

To order materials, use the email template available in "My shortcuts" on your Windows desktop.