When it comes to life insurance, think about buying it FOR YOUR CHILD, not on your child.
Whatever your child’s future holds, Equimax participating whole life insurance grows with them. It can provide access to cash value they can use to help fund their education, purchase a home, start a business, supplement their retirement income, or eventually provide for their own family’s financial well being.
Permanent life insurance could be one of the smartest investments you make in your child’s future.

A 20-year investment for $48,000 can provide your child with permanent life insurance protection and access to withdrawals of up to $288,00 over 60 years.2
Meet Baby Jacob
The Situation | The Need |
– Newborn baby Jacob, only child. – Parents have $200 a month available to spend on a life insurance policy for their son. – Net family income is $75,000. – They may qualify for a monthly Canada child benefit* that they can use to pay the premium. | – Provide permanent life insurance at children’s rates. – Create a stable investment option with opportunity for tax-advantaged growth. – Option to access cash value in the future to help fund education, or anything else Jacob may need. |
The Solution
Purchase an Equimax Estate Builder® participating whole life insurance policy for Jacob, with premiums payable for 20 years, and paid-up additional insurance dividend option. The initial life insurance coverage amount is $175,000.
What goes in … | What can come out … | ||||
Annual payment (based on $200 per month)3 | Annual level of withdrawals4 before tax | ||||
Current dividend scale interest rate | Current minus 1% | Current minus 2% | |||
Years 1−20 | $2,400 | Years 1 – 30 | $0 | $0 | $0 |
Years 21−100 | $0 | Years 31 – 90 | $4,8005 | $3,500 | $1,900 |
20 years of payments | $48,000 | 60 years of cash withdrawals | $288,0006 | $210,000 | $114,000 |
Equimax participating whole life insurance. Smart investing for your child’s future
Talk to your advisor about Equimax today!
This post was originally written by Equitable Life Insurance Company of Canada.
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1 Equimax Estate Builder® 20 pay participating whole life insurance with paid-up insurance dividend option. Monthly payment is $200 (premium plus Excelerator Deposit Option payment). Based on rates in effect as of February 11, 2023 for a male, age 0. Initial coverage amount is $175,000
2 Illustrated values are based on the dividend scale in effect at that time remaining unchanged for the life of the policy. Dividends are not guaranteed and are paid at the sole discretion of the Board of Directors. Dividends may be subject to taxation. Dividends will vary based on the actual investment returns in the participating account as well as mortality, expenses, lapse, claims experiences, taxes, and other experience of the participating block of policies. Only non-guaranteed cash value is accessible through withdrawals. Cash withdrawals may be subject to taxation and a tax reporting slip may be issued.
3 The initial face amount results in a monthly premium of $168.57 and assumes rates in effect as of February 11, 2023 for a male, age 0. The budget allows for extra deposits of $31.43 each month through the excelerator deposit option to help build the cash value, for a total $200 monthly payment to the policy.
4 Only non-guaranteed cash value is accessible through withdrawals. Withdrawals will reduce the total death benefit; however, the guaranteed death benefit will never fall below the initial face amount. Cash withdrawals may be subject to taxation and a tax reporting slip may be issued. The Tax Report in the illustration shows the taxable portion of each withdrawal.
5 Illustrated values are based on the dividend scale in effect as of the rates effective date remaining unchanged for the life of the policy. Dividends are not guaranteed and are paid at the sole discretion of the Board of Directors. Dividends may be subject to taxation. Dividends will vary based on the actual investment returns in the participating account as well as mortality, expenses, lapse, claims experiences, taxes, and other experience of the participating block of policies. Your advisor can show you alternate dividend scale reports to help highlight the potential impact possible decreases in the dividend scale interest rate can have on the values in your policy. Those reports are not a prediction of the largest dividend scale change that could occur over the life of your policy.
6 Assuming a 50% tax bracket, the total of the cash withdrawals after tax is $156,657 using the current dividend scale.
For more information on the Canada child benefit, go to www.cra-arc.gc.ca/bnfts/ccb/menu-eng.html.
For Child and family benefits calculator, go to www.cra-arc.gc.ca/bnfts/clcltr/cfbc-eng.html.
® denotes a trademark of The Equitable Life Insurance Company of Canada.