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.
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 feature | Term 100 Insurance Policy | Whole Life Insurance Policy | Universal Life Insurance Policy |
| Coverage length | Lifetime (until the age of 100) | Lifetime | Lifetime |
| Insurance coverage | Yes | Yes | Yes |
| Cash Accumulation | No | Yes | Yes |
| Ability to take out a loan against the policy | No | Yes | Yes |
| Ability to get dividends | No | Yes | No |
| Premiums type | Level Premiums (same premiums) | Level Premiums (same premiums) | Can be adjusted |
| Insurance costs | More affordable | More expensive than Term 100 | Premiums can be adjusted |
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 coverage | Male, 44 years old, non-smoker, no serious health preconditions, insurance policy for $200,000 | Male, 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 coverage | Female, 35 years old, non-smoker, no serious health preconditions, insurance policy for $500,000 | Female, 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 quote | Get your Whole Life Insurance quote | Get 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.
There are numerous permanent life insurance tax benefits, most of which apply to both Whole Life and Universal Life Insurance.
| Term 100 Insurance Policy | Whole Life Insurance Policy | Universal Life Insurance Policy |
| Yes | Yes | Yes |
| Term 100 Insurance Policy | Whole Life Insurance Policy | Universal Life Insurance Policy |
| No (since there is no cash accumulation component) | Yes | Yes |
| Term 100 Insurance Policy | Whole Life Insurance Policy | Universal Life Insurance Policy |
| N/A (since there is no cash accumulation component) | Yes | Yes |
| Term 100 Insurance Policy | Whole Life Insurance Policy | Universal 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 |
| Term 100 Insurance Policy | Whole Life Insurance Policy | Universal Life Insurance Policy |
| N/A (since there is no cash accumulation component) | Yes | Yes |
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 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 |
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.
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.
