Permanent life insurance is very different than term life insurance. Permanent life insurance is best suited for long-term needs. It helps to generate additional retirement income and provides cash for estate planning. The three types of permanent life insurance are:
- Universal life
- Whole life
- Term to 100
Universal Life
Universal life insurance provides guaranteed lifetime coverage and also includes an investment component that generates tax-deferred savings. Policy holder makes deposits, with some flexibility in terms of the amount, a portion of the deposit is used to pay the premium and the rest is invested and grows tax-sheltered.
Whole Life
Whole life insurance provides guaranteed lifetime coverage as well as savings that build over time, but the premium you pay is fixed and doesn’t change from year to year. Some policies also entitle the policy holder to receive dividends from the insurance company.
Term to 100
Term to 100 insurance doesn't offer a savings component, thus it is the permanent life insurance that costs the lowest. This policy is a good choice if you need long-term insurance protection but not the additional savings feature that universal and whole life policies offer.
For more information please visit:
Contact Us
At Safe Pacific Financial, we specialize in helping Canadian business owners, incorporated professionals, and investors structure life insurance for maximum wealth protection, tax savings, and business growth.
If you would like to discuss whole life insurance or investments, we’re happy to chat and see if we can be a good fit to work with you. Fill out our contact form and we will get back to you within 24 hours on business days.
Related Insights
What Canadian Business Owners Are Telling Us Right Now — And What To Do About It
Every week, our advisors sit down with incorporated business owners and professionals across Canada. And while every client's situation is unique, the conversations we're having...
Retire Tax-Free in Canada Using the Insured Retirement Plan
What if your RRSP isn't enough to retire comfortably? And what if there was a way to access tax-free cash flow in retirement—without market volatility,...
How Canadian Real Estate Investors Are Using Whole Life Insurance
What if you could unlock hundreds of thousands in capital—without selling a single property or applying for another mortgage? In this article, we'll explore How...
Use Corporate-Owned Life Insurance to Transfer Wealth Tax-Free
What if your estate faced a $500,000 tax bill after you pass away—on capital gains alone? What if there was a way to fund that...
CDA: How to Pay Yourself Tax-Free from Your Corporation
Imagine extracting hundreds of thousands in corporate profits—tax-free—without triggering personal tax liability. That's exactly what the Capital Dividend Account (CDA) allows incorporated professionals to do...
How to use Life Insurance as Capital Gains Relief
What if your biggest tax bill hits after you're gone? In this article, we'll explore how to use Life Insurance as Capital Gains Relief and...
OpCo to Legacy: The Estate Tax Trap
If your business owner client passed away tomorrow, what would happen—from a tax perspective—and what have you done as their advisor to plan for it?...
How Critical Illness Insurance works in Canada
What would happen if you were diagnosed with cancer tomorrow? How would you cover your mortgage, your bills, or your business expenses while you focused...
How Disability Insurance Works in Canada
What would happen if you suddenly couldn't work—due to an accident or serious illness? Understanding How Disability Insurance Works in Canada can help you prepare...
Critical Steps to Safeguard Your Legacy With Estate Planning
What happens to everything you've worked so hard to build—your business, your investments, your family home—after you're gone? It's important to understand the critical steps...
How to Be Like Jim Pattison
What if you could borrow the exact wealth-building strategy used by one of Canada's richest entrepreneurs—without being a billionaire? If you've ever wondered how to...
How to Invest in your Holding Company In Canada
Are you a Canadian business owner with retained earnings building up inside your corporation? If those funds aren't being put to work through a holding...
