Life insurance policies in Canada are primarily divided into two categories, Term Life Insurance and Permanent Life Insurance.
Term Life insurance policies have level premiums for a stated term, i.e. 10, 20, or 30 years. In most instances, Term Life insurance policies do not build a cash value.
Permanent Life insurance policies are sub-divided into three categories, Term 100, Universal Life insurance, and Whole Life insurance.
Some Term 100 life insurance policies do provide a cash value component, but most do not.
Whole Life insurance policies have a built-in cash value. In the case of Participating Whole Life policies, the cash value includes a guaranteed cash value and a dividend cash value. The dividend cash value is dependent on the performance of the insurance company itself.(Cash Back Life Insurance continued...) | 2 comments