Permanent Life Insurance Quotes and Expert Tips

Assumption Life
BMO Life Assurance Company
Canada Life Insurance Company of Canada
Canada Protection Plan
CIBC Life Insurance
Costco Insurance
Cumis Life Insurance
Desjardins Financial Security Life Insurance
Empire Life Insurance Company
Equitable Life Insurance
Foresters Canada
Industrial Alliance Financial Group
Ivari
La Capitale Life Insurance
RBC Insurance
Specialty Life Insurance (SLI)
SSQ Life Insurance Company
UV Insurance
Wawanesa Life Insurance Company

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    Permanent Life Insurance: Meaning

    Permanent life insurance is a life insurance product designed to provide coverage for your entire lifetime, as long as premiums are paid. It offers a range of benefits, including a guaranteed death benefit for your beneficiaries, tax-deferred cash value growth, and the ability to borrow against the policy’s accumulated funds.

    Unlike temporary policies (e.g. Term Life), permanent life insurance is designed to remain in force indefinitely, making it an essential tool for estate planning, wealth preservation, and financial security. There are various types of permanent life insurance, each tailored to different needs, which we will explore in the next section.

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    Permanent Life Insurance Types

    Permanent life insurance policies generally come in three forms: Term 100 Life Insurance, Whole Life Insurance policy, and Universal Life Insurance policy. Each type is designed to meet different financial goals and preferences, offering unique features in terms of premiums, cash value, and flexibility.

    In the table below, we’ve summarized the key aspects of all permanent life insurance types  to help you compare their benefits and features.

    Insurance featureTerm 100 Insurance PolicyWhole Life Insurance PolicyUniversal Life Insurance Policy
    Coverage lengthLifetime (until the age of 100)LifetimeLifetime
    Insurance coverageYesYesYes
    Cash AccumulationNoYesYes
    Ability to take out a loan against the policyNoYesYes
    Ability to get dividendsNoYesNo
    Premiums typeLevel Premiums (same premiums)Level Premiums (same premiums)Can be adjusted
    Insurance costsMore affordableMore expensive than Term 100Premiums can be adjusted

    Sample Permanent Life Insurance quotes

    Here are a few examples of permanent life insurance quotes categorized by type of
    insurance.

    Term 100 Insurance quote (sample)Whole Life Insurance quote (sample)Universal Life Insurance quote (sample)
    Term 100 for a male, 45 years old, non-smoker, $100,000 in coverageMale, 44 years old, non-smoker, no serious health preconditions, insurance policy for $200,000Male, 44 years old, non-smoker, level COI, minimum funded, no serious health pre-conditions, insurance policy for $200,000 coverage
    $107 / month$204 / month$196 / month
    Term 100 with cash values for a female, 35 years old, non-smoker, $100,000 in coverageFemale, 35 years old, non-smoker, no serious health preconditions, insurance policy for $500,000Female, 35 years old, non-smoker, level COI, minimum funded, no serious health pre-conditions, insurance policy for $500,000 coverage
    $74 / month$276/ month$251 / month
    Get your Term to 100 Insurance quoteGet your Whole Life Insurance quoteGet your Universal Life Insurance quote

    If you are interested in getting a permanent life insurance quote, click the button below or complete the form at the top of this page.

    Interested in Permanent Life Insurance or have questions?

    Permanent Life Insurance Tax Benefits

    There are numerous permanent life insurance tax benefits, most of which apply to both Whole Life and Universal Life Insurance.

    1. Tax-Free Death Benefit: The money (death benefit) paid to your beneficiaries upon your death is generally not taxed, allowing them to receive the full amount:
    Term 100 Insurance PolicyWhole Life Insurance PolicyUniversal Life Insurance Policy
    YesYesYes
    1. Tax-Deferred Cash Value Growth: Both Whole Life Insurance Policy and Universal Life Insurance Policy accumulate cash on a tax-sheltered basis, meaning you don’t pay taxes on the investment gains as long as the money stays within the policy.
    Term 100 Insurance PolicyWhole Life Insurance PolicyUniversal Life Insurance Policy
    No (since there is no cash accumulation component)YesYes
    1. Tax-Free Access to Funds (if structured properly): You can borrow against your policy’s cash value through policy loans or use it as collateral for a bank loan. These funds are not taxed if handled correctly.
    Term 100 Insurance PolicyWhole Life Insurance PolicyUniversal Life Insurance Policy
    N/A (since there is no cash accumulation component)YesYes
    1. Premiums withdrawn from the accumulation fund are paid with pre-tax dollars: You can use the policy accumulation fund to offset future premiums and, essentially, pay your premiums with pre-tax dollars.
    Term 100 Insurance PolicyWhole Life Insurance PolicyUniversal Life Insurance Policy
    N/A (since there is no cash accumulation component)N/A (since this policy type of does not allow this flexibility)Yes
    1. Potential Tax Sheltering Opportunities: It is possible to use permanent life insurance to shelter investments, as it allows for additional contributions that grow tax-deferred within the policy
    Term 100 Insurance PolicyWhole Life Insurance PolicyUniversal Life Insurance Policy
    N/A (since there is no cash accumulation component)YesYes
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    Whole Life Insurance Policy

    Whole life insurance is a type of permanent life insurance that provides lifelong coverage with a guaranteed death benefit and a cash value component that grows over time. It is often chosen for its stability, predictability, and additional financial planning benefits. In the table below, we have summarized the key advantages and disadvantages of a whole life insurance policy.

    Whole Life Insurance Advantages Whole Life Insurance Disadvantages
        Lifelong coverage
        Includes both insurance and investment components (i.e., your policy’s cash value will grow over time)
        Ability to borrow against the policy
        Constant, predictable premiums that are often lower in later life stages compared to renewing term life at that age
        Does not require advanced financial knowledge to manage
        Overall, more expensive than Term Life Insurance.
        You do not have the flexibility to change the investment strategy or premiums*

    * Note: some policies allow adjustments such as paying extra premiums or using
    dividends in different ways

    Universal Life Insurance Policy

    Universal life insurance is a type of permanent life insurance that offers more flexibility
    than traditional whole life insurance. It combines a death benefit with a cash value
    component, and policyholders can adjust both their premiums and death benefit
    amounts, within certain limits. Additionally, the cash value grows based on a credited
    interest rate, which can vary. In the table below, we have listed the key advantages and
    disadvantages of a universal life insurance policy.

    Whole Life Insurance Advantages Universal Life Insurance Disadvantages
        Lifelong coverage
        Availability of both insurance and investment components (i.e., your policy’s cash value will grow over time)
        Offers additional financial flexibility (e.g., the ability to adjust premiums) and investment flexibility (e.g., the ability to choose what to invest in), if desired
        Overall, more expensive than Term Life Insurance (for comparable coverage)
        Requires advanced financial and investment knowledge
        Does not offer dividends like a whole life insurance policy
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    Permanent Life Insurance Companies: Who offers it?

    Numerous life insurance companies in Canada offer permanent life insurance products, which provide lifelong coverage and additional benefits like cash value accumulation. Major life insurers, including Manulife, Sun Life, and Canada Life, offer a wide range of permanent life insurance options to suit various customer needs. These products are often designed for long-term financial planning, including estate planning and wealth transfer.

    Additionally, mid-sized insurers like Empire Life, Assumption Life, and Ivari also provide permanent life insurance solutions, catering to clients seeking more personalized or specialized coverage.

    On the other hand, smaller life insurance companies and bank-affiliated insurers, such as TD Insurance, are not permanent life insurance companies, as they tend to focus more on simpler products like Term Life Insurance, which offer temporary coverage at a lower cost.

    Permanent Life Insurance: What’s next?

    If you’re looking to better understand which permanent life insurance product is the best fit for your needs and situation, explore permanent life insurance tax benefits, our experienced insurance professionals are happy to connect with you for an initial, no-obligation chat.

    We can also provide you with a customized permanent life insurance quote based on your specific requirements.

    It is important to note that we work with over 20 Canadian life insurers, more than most other brokers, giving us access to a wide range of options to find the best solution for you. Let us guide you in selecting the right coverage to meet your long-term financial goals.

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