Facts on Permanent Life Insurance

Facts on  Permanent Life Insurance

As we know that there are two broad categories of life insurance: Term and Permanent Insurance.

Term Insurance is where the premiums are low , remain constant for the duration of the term and then go up after the duration of the term.

Permanent Insurance is where the coverage is life long and the cost, even though it is higher to start with, remains the same in the entirety.

Five of the primary reasons why someone would want permanent life insurance are the following:

1. For level premium and lifetime protection. It is a policy where the cost of insurance remains the same and the coverage is lifetime. Both, the premiums and payout are a guaranteed constant.
2. Insurance could generate cash value as savings and income generation. Many permanent policies, including whole life insurance plans and universal life policies, build a tax-sheltered cash value, which can be used to supplement an applicant’s retirement plan.

3. The insured has an estate plan and wishes to maximize and enhance their estate. Life insurance proceeds are paid out tax-free and this is irrespective of whenever death is to take place. In a Permanent coverage, you are always covered.

4. Final Expenses and gifts to your kids: Life insurance could be a gift paid to you family member which is tax free without any inheritance tax implication.

5. Permanent life Insurance could offset taxes that could be liable on the person’s assets, investments, stocks, investment properties etc etc.

We at YourInsuranceGuy.ca are experts in explaining the contracts, its feature, fine prints etc etc. Please feel free to contactus at aman@yourinsuranceguy.ca or at 1 416 509 2540. Please visit us for a no obligation quote or advice.


Permanent Life Insurance

is essentially a coverage that is lifelong. It runs through our life assuring a payout upon death. The cost of insurance can be level or YRT and the payout is tax free. Its main purpose is :


Universal Life Insurance

..is one of the best things that could happen in the world of Life Insurance. UL policy is when a permanent life insurance is merged with the possibility to have several investment options.

Your policy provides a lifelong coverage and at the same time you can save money within the policy to create tax-sheltered savings…

UL Policy ….an excellent way to build wealth that could actually become tax-free for your family. There are several options that could be customised for an individual.


Combining your term and permanent insurance: both are important.

People often wonder what is better, Term or Permanent Insurance. Both have their advantages and disadvantages. However, both have a significant role in our world of protecting our family, assets, incomes, family etc etc. Therefore, it could be a good idea to take a combination of Term and Permanent Insurance. It can be bought together in one policy , thus there could be some savings on policy fees and in premiums. It is a Think Smart approach to buying Life Insurance. ( Read More and watch a video)


Prepared by:  Aman Kapur

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