Recent developments in the investment markets and its volatile performance have revived an old workhorse. More and more Canadians are opting for a permanent or a whole life insurance scheme to reduce the hassle of renewals and the extra paperwork that comes with it. Investors are also looking into this policy to diversify their portfolios.
Also, permanent insurance can act as a tax-efficient fixed income investment alternative. But how is permanent or whole life insurance is a good investment? Well, let’s have a look at the list below.
A few reasons why permanent insurance is a good investment
These seem excellent reasons why anyone can consider applying for permanent life insurance, but does it make sense for you?
Should I apply for permanent insurance?
This would entirely vary from individual to individual. With permanent life insurance, you will have lifetime coverage, which means it will be your financial safety net till the day you die. Also, you will be using it as an investment, and the cash component will only grow over time. You can withdraw the proceeds at any time you want. You may also receive anywhere between 25% to 100% of your permanent life insurance policy’s, Death benefit before you die or if you are diagnosed with a specific condition such as stroke, heart attack, invasive cancer, or end-stage renal failure.
These do look like only pluses, but one significant downside to permanent insurance is that you will have to pay higher premiums. There could be tax implications, if you decide to surrender a policy or pass away with an outstanding loan.
So, before you apply for whole life or permanent life insurance, it’s advisable to weigh in the pros & cons of the policy. You should also have a clear idea of your financial situation as well as your financial goals. If you need help with that, you can always get in touch with the team at Canadian LIC. They have a team of excellent insurance brokers who can advise you on what type of policy you should opt for based on your requirements. They can also resolve any queries you may have regarding any insurance policy or scheme. Contact them; you won’t regret it.