What's the difference between 'participating' and 'non-participating' life insurance in Canada?

In Canada, the key distinction between participating and non-participating life insurance lies in the potential for earning policy dividends. Participating policies offer the opportunity to benefit from the insurer's participating account performance, allowing policyholders to potentially receive dividends. However, it's crucial to understand that dividends are not guaranteed. Non-participating policies, on the other hand, do not offer this dividend potential. For a more in-depth understanding and to determine which option aligns best with your financial goals, consulting with a professional advisor is recommended.