Permanent Life Insurance has been the go-to policy for many Canadians because of its no hassle, no fuss terms and conditions. It is as plain as water; the policy offers coverage for the entirety of the policyholders’ life or as long as the premiums are paid. On top of that, there is also a savings component available in the policy, and it offers continuous growth at a guaranteed rate. If you do not have a clear idea of what a Permanent Life Insurance policy is or what type of benefits it comes with, this blog is for you. Read on to learn more about the Permanent Life Insurance policy so you can make a well-informed decision when you’re choosing your plan.
Redefining financial security with permanent Insurance
As the name says, it’s Permanent Life Insurance, which means you get the coverage benefits for your lifetime. Unless you’re not able to pay your premiums, your policy will never lapse. And with the additional benefit that the policy can be used as a savings vehicle, you are guaranteed some extra cash even if you don’t have primary savings account to look into.
This savings component that we keep talking about accumulates funds from the premium that you pay. Now, you can not withdraw immediately after you’ve just purchased the policy; wait for some time for the funds to get accumulated. Once the waiting period is over, you can withdraw the funds you want and use them for anything you want. You can use them for your child’s higher education or for a long-awaited trip that you couldn’t take because of a busy schedule. The choice is entirely yours.
The best aspect of Permanent Life Insurance is, you will never have to worry about finding yourself in a financial crisis. Because of the savings component, you will always have some funds to use in case of an emergency. In the unfortunate event that you (the policyholder) pass away, the death benefits will be immediately released for your beneficiaries to claim alongside the accumulated funds in the cash component.
One thing you should also know is, as long as you don’t overdo your premium limits (meaning you pay an excess in premiums so your savings can increase), you can take out funds from the policy without paying any taxes. Permanent Insurance is because policy loans are not considered as taxable incomes.
The types of Permanent Life Insurance policies
Generally, there are two types of Permanent Life Insurance policies available in the market. One is
If you’ve read through here, we hope that this blog has informed you enough to make a decision. However, it is advisable to contact us at Canadian L.I.C. brokers to clear any queries you may have.