Permanent Life Insurance Quotes
Permanent life insurance provides lifelong coverage and can be used for both personal protection and long-term financial planning. Unlike term insurance, permanent policies are designed to remain in force for life, provided the policy requirements are met.
Permanent insurance can be particularly useful for people who have financial obligations or planning needs that will continue beyond their working years, including estate planning, wealth transfer and business planning.
At A Glance
- Get lifelong financial protection with permanent life insurance designed to provide a tax-free death benefit to your beneficiaries.
- Choose from different types of permanent coverage, including whole life, universal life and term-to-100 insurance, depending on your goals and circumstances.
- Get your free quotation or learn more about how permanent life insurance works and whether it may be appropriate for your financial plan.
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My Simple Process
1. Learn
Arm yourself with the knowledge you need to make the right decision and learn all there is to know about permanent life insurance.
2. Consult
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3. Apply
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4. Servicing
I'm here to provide ongoing support with your policy, including changes, assisting with claims, and more!
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The Basics
What is permanent life insurance?
Permanent life insurance is designed to provide coverage for your entire lifetime, rather than for a specific term such as 10, 20 or 30 years.
Unlike term life insurance, permanent insurance is generally intended for financial needs that don’t disappear as you get older. Depending on the type of policy, permanent insurance may also build cash value over time.
How does permanent life insurance work?
You pay premiums to keep the policy in force. In return, the policy provides a death benefit to your beneficiaries when you die.
Some permanent policies also accumulate cash value, which may provide additional financial flexibility during your lifetime.
What types of permanent life insurance are available?
There are several types of permanent life insurance, each with different features and potential uses.
The most common include:
- Whole life insurance — permanent coverage with guaranteed cash value and death benefits, with participating policies potentially providing dividends.
- Universal life insurance — permanent insurance that generally provides greater flexibility in premiums and investment options.
- Term-to-100 insurance — a simple permanent policy with level premiums payable to age 100 and no cash value.
The right type depends on your financial objectives, budget and how you expect to use the policy.
What is the difference between permanent and term life insurance?
The biggest difference is how long the coverage is designed to last.
Term life insurance provides coverage for a specified period and is generally used for temporary needs such as replacing income, protecting a mortgage or covering children’s dependent years.
Permanent life insurance is designed for lifelong needs and can be useful for covering final expenses, estate planning, wealth transfer, business planning and other financial obligations that may continue throughout your lifetime.
How much does permanent life insurance cost?
Permanent life insurance generally costs more than term insurance because it is designed to provide lifelong coverage and, depending on the policy, may include additional guarantees or cash-value features.
Permanent policies that build cash value will generally cost more than policies designed primarily to provide a death benefit. The additional premium reflects the policy’s cash-value component and other features included in the contract.
Your premium can depend on factors such as your age, health, smoking status, coverage amount, policy type and payment structure.
Dive Deeper
Is whole life insurance the same as permanent life insurance?
Whole life insurance is one type of permanent life insurance, but the terms aren’t interchangeable.
Permanent life insurance is the broader category that can include whole life, universal life and term-to-100 insurance.
Whole life policies can provide guarantees around premiums and death benefits, and participating policies may also provide dividends, which can be used to enhance the cash value and death benefit.
How does participating whole life insurance work?
Participating whole life insurance is a type of permanent insurance that may provide policy dividends based on the performance of the insurer’s participating account and the insurer’s dividend scale.
Although dividends are not guaranteed, some insurance companies have paid them for many decades. Depending on the policy and the dividend option selected, dividends can be used to enhance the policy’s cash value and death benefit, helping the policy grow over time.
Does permanent life insurance build cash value?
Some types of permanent life insurance build cash value, although the way cash value works varies significantly between policies.
Whole life and universal life policies can accumulate value within the policy, but they do so differently.
Understanding how the cash value is calculated, guaranteed and accessed is important when comparing policies.
Can I access the cash value of my life insurance?
Depending on the policy, you may be able to access cash value through a policy loan, withdrawal, or by using the policy as collateral for a loan.
However, accessing cash value can affect the policy’s value and death benefit and may have potential tax consequences.
It’s important to understand the specific provisions of your policy before accessing funds.
Is permanent life insurance a good investment?
Permanent life insurance is primarily insurance, but certain policies can also accumulate cash value and have a role in broader financial planning.
For high-income earners who have already maximized their RRSP and TFSA contributions, permanent life insurance may be worth considering as part of a longer-term wealth accumulation and estate planning strategy. It can also be relevant for corporations with retained earnings that are looking for tax-efficient ways to build and transfer wealth.
However, permanent life insurance should not automatically be viewed as a better investment than other alternatives. A proper comparison should be made between the insurance policy and other available investment and planning strategies to determine whether the costs, guarantees, tax treatment, cash-value growth and other features are suitable for your circumstances.
What is joint last-to-die life insurance?
Joint last-to-die life insurance, also called joint second-to-die insurance, covers two people under one policy and pays the death benefit after the second insured person dies.
This type of coverage can be particularly useful for couples who are planning for an estate tax liability or other financial obligation that may arise after the death of the surviving spouse. For example, life insurance can provide liquidity to help cover taxes, debts or other estate expenses without requiring other assets to be sold.
Joint last-to-die insurance may be considered for estate planning, wealth transfer and business succession, particularly when the financial liability is expected to arise after both spouses have died.
The appropriate structure depends on the couple’s assets, estate plan, beneficiaries and the timing of potential tax or other liabilities.
Can permanent life insurance be used for estate planning?
Yes. Permanent life insurance can be used as part of an estate plan to provide liquidity, create an inheritance, equalize an estate between beneficiaries or provide funds for taxes and other expenses.
The appropriate structure depends on your estate, beneficiaries, assets and overall financial plan.
Can a corporation own permanent life insurance?
Yes. A corporation can potentially own a permanent life insurance policy, depending on the circumstances and planning objectives.
Corporate-owned life insurance can be used in areas such as key-person protection, business succession, shareholder planning and estate planning.
Because corporate insurance planning can have significant tax and legal implications, it should be coordinated with your accountant, lawyer and other professional advisors.
Can permanent life insurance help business owners?
Business owners may have financial obligations that continue regardless of what happens to them personally.
Permanent life insurance can potentially help address business loans, shareholder obligations, business succession, key-person exposure and estate equalization.
The appropriate solution depends on the structure and needs of the business.
Is permanent life insurance tax-free?
The death benefit from a personally owned life insurance policy is generally paid to beneficiaries on a tax-free basis.
However, the tax treatment of cash-value transactions, corporate-owned policies and other uses of permanent insurance can be more complicated.
Are permanent life insurance premiums tax-deductible?
For most individuals, permanent life insurance premiums are not tax-deductible when the policy is purchased for personal purposes.
There are some situations where life insurance premiums may be deductible, particularly when a policy is used as collateral for certain business or investment-related borrowing and specific requirements are met.
The tax treatment can depend on how the policy is owned, how it is used and the circumstances of the policyholder. Business owners and corporations should consult with their accountant or tax advisor before assuming that premiums are deductible.
How can you get permanent life insurance quotes?
Because permanent life insurance comes in several forms and premiums vary based on the type of coverage, your age, health and lifestyle factors, a personalized quote is the best way to determine your options. Fill out the form below or email info@briansoinsurance.com to request your customized permanent life insurance quote.
Frequently Asked Questions
Is permanent life insurance worth it?
Permanent life insurance can be valuable when you have a lifelong need for insurance protection or specific estate, business or wealth-transfer objectives.
It isn’t necessarily appropriate for everyone. The right choice depends on what you’re trying to protect, your budget and your long-term financial goals.
Is permanent life insurance better than term life insurance?
Neither is automatically better.
Term insurance is often more appropriate for younger families who need life insurance to replace income and cover debts such as a mortgage. It generally provides temporary protection at lower initial premiums. Permanent insurance may be more appropriate for people looking for lifelong protection, cash value, estate planning or other long-term financial uses.
The appropriate choice depends on your financial situation and the purpose of the insurance. In fact, some people buy both because they can benefit from both types of life insurance.
What is the difference between whole life and universal life insurance?
Both can provide permanent coverage, but they are structured differently.
Whole life generally offers more guarantees and a more predictable policy structure, while universal life typically provides greater flexibility in premiums and investment options.
Does permanent life insurance expire?
Permanent life insurance is designed to remain in force for life, provided premiums are paid.
This is one of the key differences between permanent and term life insurance. Most term life insurance policies expire at a certain age, such as age 85.
Can I get permanent life insurance without a medical exam?
Some insurers offer simplified issue or other no medical exam permanent life insurance options, depending on your age, health and the amount of coverage requested.
However, fully underwritten policies may provide access to higher coverage amounts and potentially lower premiums for applicants who qualify.
How much permanent life insurance do I need?
The amount depends on what you want the policy to accomplish.
For example, your coverage may be intended to replace income, cover final expenses, provide an inheritance, fund an estate obligation, protect a business or provide liquidity for your family.
A needs analysis can help determine an appropriate amount.
Can I change my permanent life insurance policy later?
Yes, depending on the type of permanent life insurance policy you own, you may have options to change certain features after the policy is issued.
For example, you may be able to change your beneficiary, although restrictions can apply if the beneficiary is irrevocable.
With a participating whole life policy, you may be able to change how your policy dividends are used. Depending on the insurer and policy, dividends may be used to purchase additional paid-up insurance, reduce premiums, accumulate on deposit, or be paid in cash.
With universal life insurance, you may be able to change your premium payments, death benefit, insurance cost structure and the investment accounts within the policy.
What happens if I stop paying my permanent life insurance premiums?
The consequences depend on the type of policy and how long it has been in force.
Some policies may have cash value that can help keep coverage in force or provide other options, while others may lapse if required premiums aren’t paid.
Your policy contract determines the available options.
Who should consider permanent life insurance?
Permanent insurance may be worth considering if you have a lifelong need for coverage or financial planning objectives such as covering final expenses or taxes at death, estate planning, wealth transfer, donating to charity, business succession or providing an inheritance.
It can also be appropriate for individuals who want permanent coverage regardless of changes in their future health.
How do I choose between term, whole life and universal life insurance?
Start with the purpose of the insurance.
If you primarily need affordable protection for a temporary financial obligation, term insurance is usually most appropriate.
If you have a lifelong need and value guarantees, whole life may be worth considering.
If you want permanent coverage combined with greater flexibility in premiums and investment options, universal life may be appropriate.
An insurance advisor can help you compare the options based on your circumstances.
Why Work With An Independent Insurance Advisor
Buying permanent life insurance isn’t simply about finding the lowest premium. Different insurers can offer significantly different guarantees, policy features, dividend options, investment choices and underwriting outcomes.
As an independent insurance advisor, I can help you:
- Assess how much coverage you may need and what you want the policy to accomplish
- Compare permanent insurance solutions from multiple Canadian insurance companies
- Understand differences between whole life, universal life and other permanent policies
- Compare guarantees, cash values, dividends, investment options and policy costs
- Identify insurers and products that may be better suited to your circumstances
- Navigate the medical underwriting and application process
- Review your coverage as your financial circumstances and goals change
What's the next step?
You can request a personalized permanent life insurance quote or book a free, no-obligation consultation to discuss your coverage needs.