“… Jack Bendahan of LSM Insurance facilitated two insurance policies… Jack will not stop being a professional insurance/financial advisor as soon as he closed his own deal(s). He will see to it that he will be there for any assistance…”
WHOLE LIFE INSURANCE QUOTE AND EXPERT TIPS
Why Choose LSM Insurance For Whole Life Insurance
- We work with experienced and reputable independent brokers across Canada
- LSM Insurance is one of the most respected life insurance brokerages in Canada
- We work with more life insurance companies than the majority of brokers (15+ insurers)
- We have been serving Canadians for over 25 years
LSM Insurance is accredited by:
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Sample Whole Life Insurance Quotes
Female, 51 years old, non-smoker, no serious health pre-conditions, whole life insurance policy for $200,000 coverage
$237 per month
Male, 44 years old, non-smoker, no serious health pre-conditions, whole life insurance policy for $200,000
$204 per month
Female, 35 years old, non-smoker, no serious health pre-conditions, whole life insurance policy for $500,000
$276 per month
What is Whole Life Insurance?
Whole life insurance is a life insurance policy that covers a policyholder as long as he/she lives. In addition to being a life insurance product, it is also a saving product – a whole life insurance policy accumulates value that you can get, either when you terminate (surrender) the policy or if you decide to borrow against the policy value.
Historically, this type of insurance was created to combine a lifelong insurance product with a savings component.
When do you Need Whole Life insurance?
There are numerous cases in which whole life insurance is your best option:
- You want to have life-long coverage that does not expire.
- You want to have predictable insurance rates – whole life insurance rates will always stay the same.
- You want someone to invest and monitor your savings for you.
- You are not expecting extraordinary investment profits – whole life insurance’s cash value accumulation will be always lower than high-risk/high-growth investments.
How does Whole Life Insurance compare to other life insurance products?
Here is a brief comparison on how whole life insurance compares to term life insurance and universal life insurance.
|Term Life Insurance||Whole Life Insurance||Universal Life Insurance|
|Coverage length||Limited (e.g. Term 10 – coverage for 10 years)||Life long||Life long|
|Can choose amounts going into insurance and cash accumulation||No||No||Yes|
What are Whole Life Insurance Rates?
Whole life insurance rates are fixed for life. In the beginning, premiums are higher than term life insurance, but in the later stages of your life, term life insurance rates will be very high because they increase as you age. Whole life insurance rates will stay the same. That is why whole life insurance is a good option if you want to have predictable insurance rates that don’t skyrocket as you age.
How Do Whole Life Insurance Dividends Work?
CAs mentioned earlier, whole life insurance is insurance which provides coverage for the policyholder’s entire lifetime. Whole life policies can be divided into two categories: participating and non-participating. Both policies provide level premiums, lifetime protection and a guaranteed cash value — but participating whole life plans pay an annual dividend. The annual dividend is NOT guaranteed, and in most instances is linked to long-term interest rates as well as the insurance company’s performance. If you have an existing participating whole life policy which was purchased in a high interest environment, it is a good idea to request an updated policy illustration—the projected values may have changed dramatically.
Participating policies: Most participating whole life policies have multiple dividend options. The following is a brief look at four various dividend options:
- Dividends on deposit – the annual dividend is kept on account within the policy
- Paid-up additions – the annual dividend is used to purchase additional paid-up insurance
- Premium reductions – the annual dividend is used to reduce the annual premium
- Term option – the annual dividend is used to buy paid-up term insurance
Non-participating policies: By contrast, non-participating whole life policies have no dividends, and the value of these plans are guaranteed. The shorter the policy payment period, the higher the premium. The guaranteed cash surrender value of whole life policies varies by the amount of coverage, length of time paid, and the company issuing the coverage.
Below is an example (the rates and values are as of July 2018) comparing a participating and non-participating whole life policy, using a 30-year-old male non-smoker with $250,000 of whole life coverage paid up in 20 years:
|Non-participating Foresters Whole Life Policy||Participating Manulife Life Policy|
|Death benefit at year 20||$250,000||$502,107|
|Death benefit at age 65||$250,000||$783,488|
|Cash value at age 65||$411,943||$783,488|