Category: Permanent Life Insurance

What Are The Different Types Of Permanent Life Insurance Policies?

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What Are The Different Types Of Permanent Life Insurance Policies?

What Are The Different Types Of Permanent Life Insurance Policies
Canadian LIC

By Harpreet Puri

CEO & Founder

  • 11 min read
  • March 13th, 2025

SUMMARY

This blog covers the different types of Permanent Life Insurance Policies available in Canada, including whole life, universal life, and Variable Life Insurance. It explains how each policy works, its benefits, and factors to consider when choosing the right option for your needs. The blog also highlights how to buy Permanent Life Insurance online, compare Permanent Life Insurance Quotes Online, and make informed decisions based on your financial goals and preferences

Introduction

Most people think of term life policies when considering life insurance, which is an entry point because of their low cost. But what if you actually go long-term? Those looking for coverage that lasts a lifetime will choose permanent life insurance. The challenge? How to choose the right permanent life insurance policy for you

There are various types of permanent life insurance policies in Canada; each one is tailored towards a specific goal. Whether you want a policy that builds cash value, leaves a legacy to heirs or just provides financial security, knowing the differences is critical.

Permanent life insurance can be a mouthful for many things. You may be wondering, “How do I pick the right permanent life insurance?” or “What are the different types of permanent life insurance?” The good news is that you’re not the only one with these questions. As experienced insurance brokers, we’ve guided many clients through these choices.

So, let’s break it down. In this blog, we will cover the different types of permanent life insurance policies you can purchase in Canada, the benefits of each, and which permanent life insurance policy is the best for you. Plus, we’ll walk you through how to obtain quotes for permanent life insurance online and explain key differences among policies.

What Is Permanent Life Insurance?

Before getting into the different kinds of permanent life insurance, let’s take a moment to discuss what makes a policy permanent.

Unlike term life insurance, which only covers you for a limited time (often 10, 20 or 30 years), a permanent life insurance policy in Canada covers you for life. So, as long as you keep paying your Permanent Life Insurance Premiums, your life insurance policy will remain in place no matter how old you become.

Permanent life insurance policies also accrue cash value as the years go by. This is an advantage that term policies do not have. The cash value is like a savings account contained within your policy that, over time, accumulates value. You can take out a loan against it or even use it to pay premiums.

Three major permanent life insurance products exist in Canada, each with its own unique features. Let’s explore them!

1. Whole Life Insurance

Whole Life Insurance is the most common type of Permanent Life Insurance Policy in Canada. It offers predictable premiums and a guaranteed death benefit.

How Does Whole Life Insurance Work?

Having a Whole Life Insurance Policy means that your premiums do not change throughout your life and can, therefore, make it easier to budget for. These premiums are divided between your death benefit (the amount that is paid to your beneficiaries upon your death) and your policy’s cash value. The cash value increases at a guaranteed interest rate determined by the insurance company. This cash value can build up over time, and you are free to utilize it as a means of savings or a method of assisting with premiums.

Why Choose Whole Life Insurance?

Whole life insurance is a good fit if you want a policy with fixed premiums and guarantees a payout. It also provides peace of mind because this is a simple and stable way to make sure your beneficiaries receive a financial legacy. And if you’re looking for a policy that will accrue cash value throughout its life, whole life insurance may be the way to go.

At Canadian LIC, we find that many of the policies we write are whole life insurance as they offer peace of mind long into the future while providing a savings mechanism as well. It’s the type of coverage you can count on without worrying about varying premiums.

If you’re interested in this kind of coverage, steer clear to compare whole life insurance quotes online and determine what’s comfortable for your budget and long-term plans.

2. Universal Life Insurance

Universal Life Insurance (UL) is a more flexible option than Whole Life Insurance. While it also offers lifelong coverage, the main difference lies in the flexibility of both premiums and death benefits.

How Does Universal Life Insurance Work?

With Universal Life Insurance, you can adjust both your premium payments and the death benefit as needed over time. So, you can raise or lower your coverage level or change your premium payments as your financial picture changes.

Along with this flexibility, the policy builds cash value — much like Whole Life Insurance does. However, the cash value of a Universal Life Insurance Policy is invested in various options, possibly giving it more room to grow. The growth will depend on how well those investment options do, as well!

Why Choose Universal Life Insurance?

If you need flexibility in coverage, Universal Life Insurance can be a good choice. It’s best for those who want the flexibility to change premium payments and death benefit amounts as their financial needs change.

 

We’ve worked with clients who like the flexibility of Universal Life Insurance — particularly those who may experience fluctuating incomes or those whose needs may change as they move through various life stages. This might be the best option if you value flexibility in your life insurance.


Suppose you want to buy Permanent Life Insurance Online. In that case, Universal Life Insurance Policies are, in many cases, available with different investment options, allowing you to choose one that meets your financial objectives.

3. Variable Life Insurance

Variable Life Insurance (VLI) is the most investment-focused of the three types of Permanent Life Insurance Policies. With this policy, the death benefit and cash value are directly tied to the performance of investments chosen by the policyholder.

How Does Variable Life Insurance Work?

In a Variable Life Insurance Policy, you can choose to invest your cash value in a range of investment opportunities — including stocks, bonds, or mutual funds. The cash value then increases or decreases with the performance of those investments. As a result, the death benefit can vary based on investment performance.

Although this type of policy has the potential to generate more returns than whole life or Universal Life Insurance, it has greater risk associated with it. The cash value and death benefit can decline if the investments underperform.

Why Choose Variable Life Insurance?

Variable Life Insurance is perfect for those who want to play a more hands-on role in overseeing their insurance policy’s investments. If you’re comfortable with market risk and want the potential for higher returns on your cash value, variable life insurance could be appropriate for you.

Variable Life Insurance is often selected by more investment-savvy clients who want more control over their policy. However, there is an important question regarding the risks of taking cash loans; if you have this question, Permanent Life Insurance Quotes Online will help you compare and choose different policies.

How to Choose the Right Permanent Life Insurance Policy?

How to Choose the Right Permanent Life Insurance Policy

It’s important to consider your personal and financial goals when weighing the pros and cons of these three kinds of Permanent Life Insurance Policies. Reflect on the following questions:

  • What are your long-term financial goals? Are you looking for a guaranteed death benefit or for investment opportunities?
  • How comfortable are you with risk? Whole life and universal life insurance provide more stability, while Variable Life Insurance is riskier.
  • Do you want flexibility in your premiums and death benefits? Whole Life Insurance has more predictable premiums, while Universal Life Insurance can be more flexible.

If you are still unsure which policy is right for you, it never hurts to consult a seasoned broker to give you a rundown of your options.

Conclusion: Understanding Permanent Life Insurance Policies in Canada

Selecting the best permanent life insurance policy is an important decision — one that can provide you and your beneficiaries with a lifetime of benefits. Every type of insurance policy (whole life, universal life or variable life) has its own design benefits. This can help you make a sound decision that adapts to your lower long-term goals, needs, and finances.

When you’re ready to compare permanent life insurance quotes online to find the best permanent life insurance rates and options available in Canada, it’s quick to do so.

At Canadian LIC, we have assisted innumerable clients in exploring and choosing the right permanent life insurance plan best suited for them. This is where we come in to help you make the right decision for your future.

More on Permanent Life Insurance

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    Frequently Asked Questions (FAQs) About Permanent Life Insurance Policies in Canada

    A Canadian Permanent Life Insurance Policy covers you for the rest of your life as long as you continue to make your premium payments. It doesn’t expire after a specified number of years like term life insurance. It also accumulates cash value over time, which you can borrow against or use to help fund premiums.

    Since a Permanent Life Insurance Policy provides a level of stability and long-term financial security, many Canadian LIC clients opt for it. If you want coverage that will last your lifetime, this might be what you are looking for.

    What policy works best for you depends on your financial goals. Are you looking for a death benefit guaranteed to your heirs, with guaranteed premiums that won’t increase? You may be a candidate for a whole life policy. Do you want a more flexible premium or death benefit? That’s where Universal Life Insurance could come in.

    If you don’t know, that’s OK. At Canadian LIC, we assist our clients with their different options and custom solutions for purchasing Permanent Life Insurance online and getting Permanent Life Insurance Quotes Online.

    Shopping for Permanent Life Insurance online is possible. Some, like Canadian LIC, offer the option of buying policies online. This can be a fast way to get up and running, especially if you already know what you need.

    If you are ready to take that next step, you can compare Permanent Life Insurance Quotes Online and find the very best plan to suit your needs and budget.

    Permanent life insurance in Canada comes in three major types:

    • Whole Life Insurance: Provides level premiums and death benefits.
    • Universal Life Insurance: Offers flexibility in premiums and death benefits but still allows for cash value growth.
    • Variable Life Insurance: Provides more investment control, the possibility of greater returns but higher risk.

    Many of the clients we work with at Canadian LIC have a specific need — flexibility, guaranteed coverage, or investment — and they base their policy around that need.

    Whole Life offers guaranteed coverage and fixed premium payments. That’s a good choice for people who want to be sure their family is financially protected without the stress of changing monthly prices. It also accumulates cash value over time.

    For most clients, the greatest benefit is the peace of mind that comes with a family that will be taken care of regardless.

    The primary difference is flexibility and risk. Universal Life Insurance gives you the option to set premiums and death benefits. It also accumulates cash value, which gets invested into low-risk investments. Variable Life Insurance, by contrast, allows you to invest in riskier investments, like stocks, which may give you a chance at greater cash value growth but may also leave you with losses.

    If you can stomach risk and want the potential for greater returns, you may want Variable Life Insurance. But if stability is your preference, Universal Life Insurance is a safer option.

    Minimizing the Cost of Permanent Life Insurance in Canada. Factors such as your age, health, the type of Permanent Life Insurance Policy you want, and the coverage amount will determine the cost of Permanent Life Insurance. Whole Life Policies will typically have higher premiums because of their guarantees, while universal life policies can potentially offer flexibility in how much you pay in premiums.

    To estimate more accurately, request quotes for Permanent Life Insurance online. You will be able to compare prices from various providers and get the best deal. Server capabilities help you decide which cloud server to go with.

    Yes, most permanent life insurance policies — especially Universal Life Insurance — have flexibility. Depending on the policy, you can increase or decrease your coverage, adjust your premiums or change your investments. Whole Life Policies offer fixed premiums, but they let you draw on that accumulated cash value if you need it.

    Clients can also modify their policies as their needs change, and the industry is more conducive than ever before to making sure you have the right coverage as your life evolves.

    Yes, Permanent Life Insurance can be a good investment because it builds cash value over time. However, it’s important to consider it as part of a broader financial strategy. The cash value can grow, and you can use it for various purposes, like paying premiums or as collateral for loans.

    Many clients use their cash value to support other financial goals while keeping their coverage intact.

    The factors you should look for when comparing Permanent Life Insurance Quotes Online include:

    • Coverage options: What kind of coverage do you need (i.e., whole life vs. universal life vs. variable life)?
    • Premiums: What are you willing to pay for the coverage you need?
    • Cash value growth: Will the policy allow your savings to grow as time passes?

    Canadian LIC will assist clients in reviewing and comparing Permanent Life Insurance quotes online to make sure that the customer is being provided with the best quotes, considering their individual needs.

    Yes, you can change the beneficiaries listed in a Permanent Life Insurance Policy. Most insurance companies will permit you to change your beneficiaries as your circumstances change, whether because of marriage, children or the like.

    Usually, clients update their beneficiary information after major life changes to receive any insurance benefits from the right person or group.

    Permanent Life Insurance can be a good value if you want coverage for a long time and a policy that creates cash value. It provides reliability, a secure death benefit, and cash value accumulation potential.

     

    At the same time, they want to build wealth over their lifetime. Many of our clients who select Permanent Life Insurance do so because it helps them do both.

     

    The FAQs also offer helpful information about Permanent Life Insurance Policies in Canada. If Permanent Life Insurance is what you’re shopping for online, it’s useful to know your options before making a purchase. If you have decent experience working with an estate and have taken care of the insurance process, then comparing quotes will help you choose the best insurance policy that is tailored to your unique needs and budget.

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    Sources and Further Reading

    Key Takeaways

    • Permanent Life Insurance Provides Lifelong Coverage: Unlike term life insurance, Permanent Life Insurance offers coverage that lasts for your entire life, as long as premiums are paid.
    • Three Main Types of Permanent Life Insurance: The three main types are Whole Life, Universal Life, and Variable Life Insurance, each offering different features like stability, flexibility, and investment opportunities.
    • Guaranteed Death Benefit: Permanent Life Insurance Policies ensure a death benefit payout to your beneficiaries, which can provide long-term financial security for your loved ones.
    • Cash Value Accumulation: These policies accumulate cash value over time, which you can borrow against or use to help pay premiums
    • Flexibility with Universal and Variable Life Insurance: Universal life offers flexible premiums and death benefits, while Variable Life Insurance allows for investment options, potentially leading to higher cash value growth with added risk.
    • Get Permanent Life Insurance Quotes Online: It’s easy to compare quotes for Permanent Life Insurance Policies online, helping you find the best coverage to fit your needs and budget.
    • Choosing the Right Policy: When selecting a Permanent Life Insurance Policy, consider your long-term goals, financial stability, and comfort with investment risks.

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      IN THIS ARTICLE

      What Is True About Permanent Life Insurance?

      Posted on by canadianlic

      As time goes on, the savings part of Permanent Life Insurance grows. This type of insurance covers you for the rest of your life. This kind of insurance costs more than Term Life Insurance, but it has both a death payment and a savings part that earns interest without being taxed.

      What Is True About Permanent Life Insurance?

      By Canadian LIC, January 5, 2024, 7 Minutes

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      What Is True About Permanent Life Insurance

      As time goes on, the savings part of Permanent Life Insurance grows. This type of insurance covers you for the rest of your life. This kind of insurance costs more than Term Life Insurance, but it has both a death payment and a savings part that earns interest without being taxed.

      Two fundamental types of spiritual journeys are whole life and universal life Whole Life Insurance guarantees that the cash value will grow over time, while Universal Life Insurance lets you change your payments, and the growth depends on market rates. With changes like variable life and variable universal life, you can put the cash value into a number of different financial investments.

      Once you’ve chosen the right policy, research the insurance companies thoroughly to get the best insurance available.

      Understanding Permanent Life Insurance

      Understanding Permanent Life Insurance

      Permanent Life Insurance is a lifelong coverage plan. Permanent Life Insurance covers you for all of your life, while Term Life Insurance only covers you for a certain amount of time. As long as the payments are paid on time, this insurance will cover the policyholder for their whole life. The regular payments are what keep the insurance going. They pay for both the death benefit and the cash value.

      The best thing about this insurance is that it serves two purposes at once: it protects loved ones financially after the policyholder dies and also builds up a cash balance over time. This savings account, called the “cash value,” grows slowly with each insurance payment. Like a savings account related to insurance, this cash value keeps going up over time.

      What’s interesting about this cash value is how flexible it is. It’s not just there; it’s there for you when life throws you a cash curveball you didn’t see coming. You can borrow money against this cash value or even take money out of it if you need to. It’s like having an emergency fund that grows along with your insurance. This cash value can be your reliable source of cash in case of emergency hospital costs, your child’s college fees, or any other pressing need.

      The fact that this strategy is always the same is one of its excellent features. Permanent Life Insurance goes with you for the rest of your life, while Term Life Insurance ends. As long as those premiums keep coming in, the insurance will stay in place and protect you while building up your cash reserve.

      The cash value gives you extra financial security that Term Life Insurance doesn’t offer by letting you borrow money or take it out like having a safety net to protect you from the sudden turns and changes that life can take. This freedom gives you a sense of financial security and peace of mind, knowing that you have extra money in case you need it.

      In addition, the accumulation of cash value in a Permanent Life Insurance Policy can help you save money on taxes. The cash value grows tax-deferred, which means that as long as the money stays in the policy, you won’t have to pay taxes on the money that has grown. In addition, payments up to the total amount of premiums paid are often tax-free, which can help you with your financial planning.

      For the most part, Permanent Life Insurance not only protects your family’s financial future but also acts as a long-term financial tool that changes with your wants and provides extra money when life takes an unexpected turn.

      Click here to find out the need of Permanent Life Insurance

      Tax Advantages

      Permanent Life Insurance policies come with appealing tax advantages that make them an attractive long-term financial tool for many individuals. Understanding these tax benefits is crucial when considering the purchase of a Permanent Life Insurance policy.

      One significant benefit is the tax-deferred growth of the cash value component. The cash value in a Permanent Life Insurance policy accumulates over time, and the interest it earns isn’t subject to immediate taxation. This tax-deferred growth allows the cash value to increase faster since taxes are deferred until you withdraw the funds. It’s like growing your savings without having to worry about yearly tax deductions.

      Another notable advantage is related to withdrawals from the policy. Typically, withdrawals up to the total premiums paid into the policy are not taxed. This means that if you’ve contributed more in premiums than the value of the policy, withdrawing that amount is typically tax-free. It’s like accessing a portion of your savings without any tax implications.

      However, it’s essential to note that beyond the total premiums paid, withdrawing additional funds could trigger taxes. Any amount taken out beyond what you’ve contributed may be subject to taxation. These withdrawals are generally considered as income and are subject to regular income tax rates. Moreover, if you surrender or cancel the policy entirely, any gains you’ve made above and beyond the premiums paid may also be taxable.

      These tax advantages make Permanent Life Insurance policies not just a means of providing a financial safety net for your loved ones but also an efficient way to grow savings over time. The ability to accumulate tax-deferred funds and access them later without incurring immediate tax liabilities is a significant benefit for policyholders.

      However, while the tax advantages of a Permanent Life Insurance policy are attractive, it’s crucial to consult with a financial advisor or tax professional. They can provide personalized guidance based on your individual circumstances and ensure you fully understand the tax implications of any withdrawals or policy surrenders.

      In summary, the tax advantages associated with Permanent Life Insurance policies, such as tax-deferred growth and tax-free withdrawals up to the total premiums paid, can make them an appealing financial option for long-term planning and savings.

      Pros and Cons

      Permanent Life Insurance provides lifelong coverage, ensuring financial protection for your loved ones regardless of when you pass away. This coverage, combined with a savings component, makes it an appealing choice for many. However, like any financial decision, Permanent Life Insurance has its share of pros and cons.

      Pros:

      Lifelong Coverage: Unlike term insurance, which has a specific duration, Permanent Life Insurance stays in force throughout your life as long as premiums are paid. This guarantees financial protection for your beneficiaries whenever you pass away. Savings Component: One of the notable features of Permanent Life Insurance is the cash value it accumulates over time. This cash value grows on a tax-deferred basis, meaning you don’t pay taxes on the earnings as long as they remain within the policy. This savings component acts as a financial cushion that policyholders can access during their lifetime. Tax Advantages: The cash value growth within a Permanent Life Insurance policy enjoys favourable tax treatment. The tax-deferred growth allows your money to grow faster since you’re not paying taxes on the earnings annually. Additionally, withdrawals up to the total amount of premiums paid are generally not subject to income tax.

      Cons:

      Higher Premiums: Compared to Term Life Insurance, Permanent Life Insurance typically comes with higher premiums. These higher costs may make it less affordable for some individuals, especially those seeking significant coverage amounts. Reduced Death Benefits: While the cash value within a Permanent Life Insurance policy can be accessed through withdrawals or loans during your lifetime, doing so might decrease the death benefit. If you withdraw funds from the policy’s cash value or take a loan against it, it could reduce the amount your beneficiaries receive upon your death.

      Understanding these aspects can help in making a smart decision when considering a Permanent Life Insurance policy. It’s crucial to assess your financial situation and future needs before committing to a policy. While the lifelong coverage and savings feature is attractive, the higher premiums and potential impact on death benefits upon cash value withdrawals should be carefully evaluated.

      Ultimately, consulting with a knowledgeable insurance advisor or financial professional can provide valuable insights into whether a Permanent Life Insurance policy aligns with your long-term financial goals and offers the security and coverage you seek for your family.

      Permanent Life Insurance offers lifelong coverage and a cash value savings feature. It pays a guaranteed benefit upon death and provides tax advantages. While it involves higher premiums and potential reductions in death benefits upon cash value withdrawal, it can be a valuable long-term investment.

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      Faq's

      Permanent Life Insurance is a policy designed to cover you for your entire life, unlike term insurance, which has a set coverage duration. It includes a savings component called cash value, which grows over time.

      There are various types: Universal life offers flexibility in premiums and benefits, whole life guarantees a cash value growth, while variable life and variable universal life allow investment options.

      It depends on your needs. Term life is more affordable and covers a specific period, whereas permanent life lasts a lifetime and accumulates cash value but has higher premiums.

      Yes, after a certain time, you can withdraw cash, take a loan against the policy’s cash value, or surrender the policy. However, these actions may incur fees and taxes.

      As long as you keep paying the premiums and the policy remains active, Permanent Life Insurance provides coverage throughout your life.

      Permanent Life Insurance offers a death benefit and a savings component. However, its investment aspect might not yield as high returns as other investment avenues.

      If you stop paying premiums, the policy might lapse, and the coverage and cash value might be affected. Some policies may have a grace period before this happens.

      Yes, some policies allow modifications or additions, such as adjusting coverage amounts or adding riders to tailor the policy to your changing needs.

      Premiums for Permanent Life Insurance policies can be fixed or flexible, depending on the policy type and its terms. Some policies offer flexible payment options.

      Yes, you can have multiple Permanent Life Insurance policies, but the total coverage across all policies should align with your financial needs and eligibility.

      Cash value in a Permanent Life Insurance policy grows over time based on premiums and interest. It can be used for policy loans, withdrawals, or to pay premiums.

      Yes, most permanent life policies have a surrender value, which is the amount you receive if you surrender the policy before its maturity or death benefit payout.

      Upon the insured’s death, the beneficiaries receive the death benefit. The policy’s cash value is generally not paid out with the death benefit.

      Some term policies offer the option to convert to Permanent Life Insurance without a medical exam. It’s a way to transition to lifelong coverage if needed.

      The cash value growth is tax-deferred, and withdrawals up to the total premiums paid are typically tax-free. However, consult a tax advisor for specifics.

      For certain policies, the cash value growth rate may be guaranteed, but it varies based on the policy type and insurer.

      Yes, you can take a loan against the cash value of your policy, but it’s essential to understand the interest rates and potential impacts on the policy’s value.

      Many permanent life policies offer riders that provide additional benefits, such as a waiver of premium or an accelerated death benefit.

      Permanent Life Insurance can be a valuable tool for estate planning, offering tax benefits and liquidity to cover estate taxes or provide inheritance.

      Premiums for Permanent Life Insurance tend to be higher as you age, so purchasing it when you’re younger might result in lower premiums.

      Depending on the policy, you may have options to increase the death benefit by purchasing additional coverage or adjusting the policy.

      Policyholders can cancel their Permanent Life Insurance policies, but doing so may involve surrender fees and a loss of coverage and cash value.

      Your health can impact the premiums for Permanent Life Insurance. Generally, better health conditions lead to lower premiums.

      Yes, you can name multiple beneficiaries for your Permanent Life Insurance policy, specifying the percentage of the death benefit each will receive.

      In some cases, you might be able to transfer the ownership of a Permanent Life Insurance policy, but it’s subject to certain conditions and may require approval from the insurer.

      Premiums for Permanent Life Insurance tend to be higher as you age, so purchasing it when you’re younger might result in lower premiums.

      The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

      Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

      Do You Need Permanent Life Insurance?

      Posted on by canadianlic

      Are you in search of financial protection for your dependents even after your last breath? Permanent Life insurance is the answer to your quest.

      Do you need Permanent Life Insurance?

      By Candian LIC, September 27, 2021, 8 Minutes

      Schedule a call

      Do you need Permanent Life Insurance

      Are you in search of financial protection for your dependents even after your last breath? Permanent Life insurance is the answer to your quest.

      When you look back on your life’s memories or dream about your future, certain milestone moments cross your thoughts, like graduation from school, buying your dream home, raising your kids and more. Whatever be the memory, you generally look forward to planning your future. Your studies & graduation may leave you with an education loan that your parents would have co-signed. Your dream comes with a mortgage package that you need to repay. And your children will depend on you for numerous living expenses- for a certain period.

      Many responsibilities come with these milestones. This is when life insurance extends a helping hand.

      Importance of life insurance in your life-

      Life insurance helps in protecting your family on financial grounds. It promises financial assistance for the family even after the insured is no more. The death benefit – that’s the lump sum paid or due to be paid on the death of the insured person can help a family cover various expenses including funeral costs, child care, education, estate and legal charges, and any bill payments due or outstanding debts.

      There are three basic kinds of life insurance: Term, Permanent, otherwise called Whole Life, and Universal Life Insurance.

      What is the purpose of permanent life insurance?

      Are you looking for lifelong protection?  Then, this is the right insurance for you. Wondering why? Because permanent life insurance is applicable all through your life irrespective of your Term. All you have to do is pay your monthly and annual premium regularly, and those are the payments you spend to own that life insurance policy.

      Sounds like an exciting deal, but how do you whether it is suitable for you? Here are some of the criteria you need to understand before you close a life insurance purchase-

      Do you like to plan for your future? Do you want to stay assured that your coverage will be applicable as long as you live? Or do you have queries about how much you need to contribute towards insurance every year? Then permanent life insurance is the perfect pick for you.

      Here are few things you can expect in permanent life insurance-

      • Your life insurance coverage is assured till you live, provided you maintain regular required payments.
      • Depending on chosen plan Your premium is promised to be the same irrespective of your age or changing health condition.

      How can permanent life insurance help you multiply your money?

      Many permanent insurance policies come with a feature known as cash value. It is similar to equity in your home. It grew with time, and you can also borrow against it directly or use it as collateral to apply for a loan. You also have a choice to withdraw cash value, but this may bring down the death benefit.

      While the price of permanent life insurance is comparatively more than Term Life Insurance, Permanent Life Insurance gives you the best returns in the long run. Term life insurance is usually not costly if you are young and healthy, but it only offers temporary coverage. Its cost may go up drastically as you renew it in future, and also, you don’t have any cash value to borrow over it or cash in.

      Read more to understand about How Life Insurance works.

      Learn how life insurance benefits through your employer-

      Have you checked whether your employer gives life insurance as part of your benefits plan? That’s a great start, but here are certain aspects you need to check about workplace life insurance-

      • You can’t carry it with you when you change from one workplace to another. You will have to enroll for it again at your new employer’s office, and you will lose coverage between jobs. You may choose to change your group coverage into individual insurance protection.
      • This policy comes to an end as you retire.
      • It gets expensive as you grow older.

      Yes, purchasing life insurance in a group plan is generally cheaper than buying it individually. But check if your group coverage is sufficient to cover your family’s expenses along with significant expenditures such as mortgage or education fees for your kids. For such specific reasons, you may choose to buy individual life insurance that you may enjoy regardless of your employer’s office and top it up using group coverage available at your workplace.

      Discuss with our insurance advisor about various life insurance options-

      After you have finalized a permanent life insurance policy, you may understand various permanent insurance policies in the market. Few demand payments for a limited period but protect you lifelong- Such as 20 Pay Plans, Etc. To check which life insurance policy suits your budget, it will be right if you understand the various types of coverage available and their specialties & benefits. Your needs could be simple, and you may require only single life insurance to cover both your partner and kids. Or your lifestyle could be different with a joint family or business to safeguard; in such a circumstance, you may need more than one life insurance to meet your requirements.

      When purchasing particular life insurance, it is better to check all the choices with an insurance advisor. Because an expert in the field Advisors from Canadian LIC will help you formulate life insurance according to your requirement and budget. An advisor’s expertise and experience in the insurance field can support you in passing a sizeable asset to your heirs.

      • Before making a policy purchase, make sure you know why you are purchasing the policy.
      • Secondly, take time to discuss with your advisor at Canadian L.I.C. Inc., who will assist you in choosing the best life insurance policy keeping in mind your priorities.

      Want to buy Life Insurance immediately? We offer the best life insurance quotes in Canada. Talk to your advisor today at Canadian L.I.C. Inc. at 416 543 9000  & get your personalized life insurance quote.

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      Call 1 844-542-4678 to speak to our advisors.

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      The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

      Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

      What is Permanent Life Insurance?

      Posted on by canadianlic

      If you are looking for a life insurance policy that will protect your family financially, even if your life to long, it may be time to think about Permanent Life Insurance.

      What is Permanent Life Insurance?

      By Candian LIC, April 16, 2021, 3 Minutes

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      What is Permanent Life Insurance

      If you are looking for a life insurance policy that will protect your family financially, even if your life to long, it may be time to think about Permanent Life Insurance.

      What is Permanent Life Insurance?

      Permanent Life insurance does just what its name says, it provides lifelong, permanent insurance coverage. It is a policy that protects the policyholder until death. It is a great insurance policy to cover long-term or lifelong needs such as care for a dependant or disabled child, funeral expenses, liquidity for business or tax liabilities of the estate.

      How does permanent life insurance work?

      If you pass away, your beneficiaries will receive a tax-free payment amount, just like other life insurance policies. As with most types of life insurance, permanent life policies have a savings component. The savings, or investment, part is in addition to the lifetime coverage. Some of the premiums are put towards investments and accumulate. They are tax-deferred, generating a cash value that the policyholder can use if required. If used as savings by the policyholder, the cash value can be used as retirement funds, being withdrawn partially or fully. This is done by using the cash value as collateral and taking out a loan.

      Two Types of Permanent Life Insurance

      Participating: Participating Life Insurance has guaranteed insurance payouts and cash values. Although you also get dividends each year, your premiums will stay the same.

      Universal: Universal Life Insurance guarantees cash values on selected policies, and you can choose your own investment options. It is usually less expensive than a Participating policy and has more premium payment flexibility.

      Get The Best Insurance Quote From Canadian L.I.C

      Call 1 844-542-4678 to speak to our advisors.

      Get Quote Now
      Best Insurance Plans Helpline From Canadian L.I.C

      Advantages of Permanent Life Insurance

      • There is no set term for this type of insurance. You pay and get covered until you pass away or surrender the policy. Permanent Life Insurance has lifelong coverage, as long as the premiums are paid. Some permanent policies state an age, such as 100 0r 121. If you live up to those ages, you don’t have to worry about premiums. The death benefit will still be given when you pass away. Some insurance policies will pay out the benefit if the policyholder lives to a certain age.
      • Permanent insurance policies allow you growth on savings, as tax-deferred cash. If you end up having to surrender the policy, you will get that amount (or most) back.
      • Another advantage is cash value can be borrowed from this policy, like a loan. This advantage is in addition to the death benefit. Any loan, however, will reduce the death benefit and cash value by the amount you borrow.

      If you have any questions, don’t hesitate to contact us to discuss Permanent Life Insurance further. Let us help you have peace of mind for your family.

      The above information is only meant to be informative. It comes from Canadian LIC’s own opinions, which can change at any time. This material is not meant to be financial or legal advice, and it should not be interpreted as such. If someone decides to act on the information on this page, Canadian LIC is not responsible for what happens. Every attempt is made to provide accurate and up-to-date information on Canadian LIC. Some of the terms, conditions, limitations, exclusions, termination, and other parts of the policies mentioned above may not be included, which may be important to the policy choice. For full details, please refer to the actual policy documents. If there is any disagreement, the language in the actual policy documents will be used. All rights reserved.

      Please let us know if there is anything that should be updated, removed, or corrected from this article. Send an email to [email protected] or [email protected]

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