protection for a predictable cost
insurance is able to provide protection for the entire life of the
insured, rather than just for limited period of time. This means
that premiums paid for this insurance may be considered as
investment, which sooner or later will go to the designated
beneficiaries (without tax, by the way).
As distinct from
Term Life Insurance,
in most instances, permanent policies are designed with a level
premium payment for the lifetime of the policy, providing lifelong
protection at a predictable cost (Illustration).
Cost of insurance depends on the insured's age, sex, health,
smoker/non-smoker, and the sum insured (amount of coverage). Men pay
more than women, and rates for smokers are higher than for
non-smokers, which results from more favourable statistics for women
Preferred Rates. Some
companies offer different levels of premiums depending on the
insured's health, lifestyle and family history: usually, three
levels for non-smokers and two levels for smokers. However, medical
evidence is required to categorize the insured into the
appropriate premium level.
Age at Issue.
Permanent (Whole) Life insurance policy may be issued for the
applicants who are from 0 to 85 years old at the moment of
application for the policy.
Cash Surrender Value
(Whole) Life Insurance
Cash Surrender Value (CSV),
makes this policy an attractive investment tool. Should a
policyowner decide to terminate a permanent policy, the insurance
company is released its future obligations under the contract and it
will return to the policyowner the policy's cash surrender value. By
that, the owner gets back a part or entire amount of premiums paid
to the company.
CSVs are guaranteed and stated in the policy, and generally
increase from year to year.
or at least a high percentage of it, is available to the policyowner
as a loan during the lifetime of the policy.
This is a life insurance policy in which all required premiums have
been paid. The most typical paid-up policies are following:
require premium payments for a limited number of years, for example
for the first 10 years, 15 years, 20 years or to age 65 (10 Pay, 15
Pay, 20 Pay or Pay to 65). If all premium payments have been made
over those years the policy is considered paid-up
and remains in force until the insured person dies or cancels the
The owner of the
whole life insurance policy may stop premium payments and maintain a
reduced death benefit for the life of the insured. A new policy with
the reduced death benefit is considered paid in full and requires no
more premiums payment. Such a policy remains in force until the
insured person dies or cancels the policy. As with the CSV, this
insurance with reduced coverage is guaranteed by the contract.
Customizing your policy with extra benefits.
It is recommended a yearly
review of your insurance policy to make sure it continues to meet
your changing needs. And, if your needs change, it’s good to know
that you have several options to change your current amount of
insurance or type of coverage.
Whole Life Insurance
you can choose a number of “riders” or extra benefits. These extra cost
options help customize your policy. Some examples include:
You can choose a
contract from the Canada's top insurance companies:
Empire Life, BMO Insurance, Equitable Life
of Canada, RBC Insurance, Industrial Alliance, Canada Life and
for more information and free consultation.
If you have any questions or concerns,