Do you need Permanent Life Insurance?

By Candian LIC, September 27, 2021, 8 Minutes

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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.

Click here to understand what permanent life insurance is, in simple terms

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.

Understand more about how life insurance works here – Read more.

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.

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