What is Permanent Life Insurance?

By Candian LIC, April 16, 2021, 3 Minutes

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 If used as savings by the policyholder, the cash value can be used as retirement funds, being withdrawn partially or fully.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

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Advantages of Permanent Life Insurance

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.

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