[radioman]

@Tiger what you're talking about is a participating whole life plan. There are a lot of insurance companies in Canada and many offer this type of product. Some are better than others.

Many have different payment lengths like 10/15/20.

These products pay a dividend every year and you have different options on what you would like to do with this dividend. You can take it in cash, or buy more insurance. The most popular option I see is buying more insurance which makes the death benefit grow over time.

The cash value growth is tax deferred and you can take it out when you wish. If you do so and you had originally wanted the dividends to buy more insurance that portion will go down as you start taking cash out.

This type of plan is expensive and it really becomes a growing 'asset class'. Many people who have large partiicpating life polices are those who want to leave a legacy for their family and this is a great way to do so.

@4444 While you're correct in your post it might be a good idea to get that term policy sooner rather than later. Although you're waiting for your child to be born you don't know what could happen between now and then. Locking in insurability is one of the reasons people buy a large T10/20 policy at a younger age. Coupled with the fact that the premiums will be reduced due to a younger age.

An example would be someone being diagnosed with non life threatening cancer or having a heart attack and now that person is declined for a long period of time from get life insurance. We don't know when or if these things will happen.

The waiting game isn't a good one to play with insurance.