What is Permanent Life Insurance? Permanent life insurance provides lifetime coverage, unlike term life insurance which is in place for a particular, pre-defined period of time. Permanent insurance has both an insurance and an investment component.
Here are three most frequent types of permanent life insurance with more explanations:
1. Whole life insurance: It is a type of a permanent life insurance that covers you as long as you live. Typically, you will be paying constantly higher premiums since in the early years of your policy it should accumulate enough value to off-set later higher insurance risk. Your premiums will not change throughout your life. You can also terminate the policy (also called surrender) if you want and get back part of accumulated funds, or you can sometimes borrow money against your policy cash value.
2. Universal life insurance: It is another type of permanent life insurance. It is quite similar to whole life insurance in that it stays in place until you die or decide to terminate (surrender) the policy. The difference is that you can choose the amount of premiums that are paid into the cash accumulation part of your policy.
3. Term 100: Despite its name, this is another type of permanent insurance, since it stays in place for your whole life. . The difference is that there is no cash value accumulated through this policy, and thus it can have lower premiums than whole or universal life insurance.
Our Publications related to Life Insurance
Life, Disability and Critical Illness Insurance: Do Men or Women Pay More?
Introduction There were many articles written about men paying more for car insurance than women, but what about other insurance types? Do women always benefit from lower insurance rates? We took on this question and systematically went through various life insurance, disability insurance, and critical illness insurance by consulting with professionals who had the answers. […]
Introducing a New Tool to Find Out What Issues Canadian Face with Their Insurers
The arrival of COVID-19 has pushed Canadians, more than ever before, online for finding and applying for insurance and banking products. It is not easy, though, to make the right choice without knowing if a particular insurer will be there when you need them the most. As the largest Canadian review platform with thousands of […]
If Life Insurance Plans Were Cars: How to Look at Various Types of Life Insurance in Canada
Overall, insurance is considered a somewhat boring, though necessary, topic. On top of that, it is not always clear – there are plenty of various types of life insurance products in Canada that work differently. I decided to explain it in a bit of a different and funny way – I hope that you will […]
Insurance Companies in Canada – Easily Explained
The life insurance landscape in Canada is quite unique. The infographic below shows all the key players and their size, reflecting their assets under management (AUM) based on life and wealth segments of the company’s business. scroll further down to continue reading In Canada, the majority of insurers fall under the umbrellas of three large […]
What is Travel Insurance, and Why Do I Need it?
By RateHub.ca When it comes to budgeting for your vacations, travel insurance is one of those things that’s often overlooked. It’s easy to understand why: we have publicly funded healthcare in Canada, so many people assume that benefit applies to wherever we travel in the world. Unfortunately, that’s not the case. The cost of seeking […]
