Whole Life Insurance

Whole life insurance in Canada provides individuals with a permanent form of life insurance. The insurance premiums on whole life insurance are more expensive than traditional term life insurance. In most cases the life insurance premiums do not change.

Whole life insurance is available from numerous insurance companies in Canada. Individual life insurance agents are in many cases able to provide you with pricing and coverage from numerous companies, however in some cases insurance agents are captive agents only offering products from one insurance company.

Whole life insurance – Pros and Cons

  • Premiums remain the same over the lifetime of the policy
  • Individuals overpay for coverage and premiums in early years to offset the higher insurance gets associated with aging
  • Premiums are higher than premiums for universal life in most cases
  • The excess in premiums is known as the “cash value” of the policy
  • Cash value is known as the “cash surrender value” – which is the amount of funds returned to the owner of the policy if they choose to cancel the policy
  • In some cases, the cash value can be used as a loan to the holder of the insurance
  • Cash value can also be used to cover insurance premiums
  • Insurance policies will not be cancelled by the insurer
  • Whole life policies are available with quick pay options whereby insurance premiums are covered in most cases over a 20 year period

In many cases the cash value estimates provided by insurance agents and insurance companies when individuals are contemplating purchasing insurance are simply assumptions. Cash values take time to grow, and this growth is minimal initially in most cases over early years of the policy. This type of insurance is extremely safe, and most insurance companies and policies are covered to a certain degree by Assuris. Individuals should look at how insurance policies are covered by visiting the Assuris website.

Whole life insurance provides individuals with a suitable solution to deal with longer term insurance needs. Individuals should always consult with experienced insurance agents. Every individual and each family has unique circumstances and needs.

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