Permanent Life Insurance

Insurance that covers you all throughout your life.

What is Permanent life insurance?

Permanent life insurance is a insurance polkicy that gives you lifelong coverage, which never expires. There are three types of permanent life insurance policies:

Whole life insurance
Universal life insurance
Participating life insurance

You can access money in you policy through a loan or a withdrawal. All of these permanent policies come with a death benefit – that is tax free payment your beneficiaries will get after you die.

Who needs permanent life insurance?

Term life is cheaper and offers protection when you need it most. A term policy should be able to cover an asset, liability or both for a fixed period of time to protect your loved one from unfortunate, unexpected events. Permanent life insurance, however, provides additional benefits including:

High-income earners who have maxed out other investment vehicles and have a need for life insurance.
People with a special-needs child or lifelong dependents
Wealthy individuals who want to preserve the value of their estates for their heirs
People who want to leave a financial legacy to their loved ones
Seniors who don’t have enough savings to cover their end-of-life expenses, like medical care and funeral costs
People looking for lifetime coverage instead of term life insurance coverage

Types of permanent life insurance

Whole Life Insurance

Universal Life Insurance

Participating Life Insurance

Whole Life Insurance

Universal Life Insurance

Participating Life Insurance

Benefits of permanent life insurance

A tax-free death benefit

Your beneficiaries get the money from the death benefit. They can use this money in any way they want. For example, they can use it to cover the cost of debts, mortgage or rent, child care, living essentials and any other expenses.

Cash value

You have a chance to grow your money with cash value. Some permanent life insurance plans also come with a savings portion called cash value, which can help you earn interest that’s tax-preferred and grow your money over time. You can borrow from your cash value as a loan or withdraw funds from it. Please note that withdrawing from your cash value may reduce your policy’s death benefit.

Life long coverage

You’ll get insurance that never expires. Some insurance plans, like term life insurance, offer coverage for a select number of years. But permanent life insurance plans have you covered all throughout your life. So there’s no need to ever renew your policy or worry about it expiring.

Premium that will not change

Your premiums (monthly or annual fees) won’t rise over time. Most permanent insurance costs typically don’t increase from the time you first buy the policy. And some permanent insurance plans let you pay for a limited time and then never again.

Permanent life insurance policies can be a smart option for someone who:

Wants their beneficiaries to receive a payout regardless of when they pass away
Wants to leave money to their loved ones or preserve the value of their estate for their heirs
Has already maxed out other investment options and is seeking a tax-deferred savings account

Permanent life insurance offers several benefits — lifelong coverage, cash value, and flexibility.

Get in touch with an independent advisor like myself to understand if permanent life insurance is a better choice for you and find the best coverage at the best possible price.

Coverage that can last your whole life.

Get a permanent life insurance quote

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Frequently asked questions

How does permanent life insurance work in Canada?

Permanent life insurance gives you coverage all throughout your life. Your beneficiaries will get a payment after you die. Some of our permanent life insurance policies can also help you build up a cash value.

How old do I have to be to apply for permanent life insurance in Canada?

Canadians and those living in Canada can apply for permanent life insurance starting at age 18. Anyone under age 18 can still be named as an “insured person” under a policy. But the policyowner must be a legal adult. For example, a parent can buy a policy for their children. For more detailed information, connect with me.

What’s the difference between permanent and term life insurance?

The main difference between permanent life insurance and term life insurance is that permanent life insurance offers lifelong insurance coverage whereas term only covers you for a specific number of years (e.g. 10, 15 or 20 years).

Both term and permanent life insurance will give your beneficiaries a payment after you die. But with a term policy, your beneficiaries won’t receive any money if you die after your term expires. Also, with a term policy your premiums may increase if you want to renew your term. With most permanent life insurance, however, your premiums are guaranteed to remain the same all throughout your life, regardless of any changes to your health.

How does cash value work in a permanent life insurance policy?

Cash value is a savings portion within your policy that earns interest. You can borrow from it or withdraw from it. But please be mindful of what can happen if you withdraw from your cash value.

Can you cash out a permanent life insurance policy before you die?

You can withdraw your cash value, but this may reduce your policy’s death benefit – which means there will be less money for your beneficiaries after you die. There can also be tax consequences if you access your policy’s cash value. For more detailed information, connect with me.

How long do you have to pay for permanent life insurance?

It depends on the type of permanent life insurance policy you get. A permanent life insurance policy is designed to last your entire life, from the time you buy it until you die or stop making payments. Some permanent policies give you the option to pay for life (age 100). And other permanent insurance policies only require you to pay premiums for a specific amount of time like 10 years, 20 years, etc. Connect with me to get more detailed information.

Who needs permanent life insurance the most?

There are three types of permanent life insurance: whole life insurance, universal life insurance and participating life insurance. A permanent life insurance policy can be ideal for Canadians or people residing in Canada who:

want lifetime coverage with a guaranteed death benefit,
like the idea of guaranteed cash value and
want premiums that won’t increase.

Where can I learn more about my insurance options?

If you’re not sure if term life insurance is right for you, then consider getting some advice. An advisor can explain your options, answer your questions, and help you build life insurance into your overall plan.

Connect with me in the way that works best for you, over the phone, in person or via Zoom. Connect now.