Permanent Life Insurance
Permanent Life Insurance is a valuable financial tool that is designed to provide affordable coverage over the course of your entire life. Permanent Life Insurance enables you to lock-in your costs at your current age.
Unlike Term Insurance, the costs of Permanent Insurance do not rise as you get older. There are three main types of Permanent Life Insurance.
Whole Life
Whole life insurance is a form of permanent life insurance designed to last your "Whole Life". The premiums you pay for your Whole Life insurance may be entitled to policy dividends based on the profitability of the insurance company. These dividends can be used in a variety of ways, such as: received in cash, left to accumulate within the policy, used to purchase additional permanent insurance, or used to purchase additional term insurance.
Universal Life
Universal Life offers permanent life insurance in a flexible package made up of two components: basic insurance coverage and a tax-sheltered investment component. Premium payments in excess of what is required to cover the cost of insurance are deposited to the tax-sheltered investment account (up to prescribed levels set by Canada Revenue Agency). The funds within the investment account can be invested in a variety of ways, including GICs, many common Mutual Funds, or various market indices. On the death of the insured the value of the investment account is added to the basic insurance benefit and is paid to the beneficiary tax-free.
Term to 100
While the name implies temporary coverage, Term to 100 is actually permanent life insurance. The premiums for Term to 100 are guaranteed, and remain level until age 100. If the insured is still living at age 100, the premiums would cease, however the coverage would continue until their death. Many Term to 100 policies also offer Cash Value if the coverage is surrendered by the insured before death.
To learn more about which type of life insurance is right for you, please contact us.
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The Benefits of Permanent Insurance.pdf
