Permanent Life Insurance

Permanent Life Insurance – or, “Whole Life” Insurance provides guaranteed lifetime protection. Younger Canadians will find it more expensive than term. But your premiums remain constant, so at a certain point in your life it will be cheaper to pay for your permanent life insurance than it would be to buy additional term insurance. (Some permanent life insurance products are adjustable, which is to say that their premiums change over time.)

A participating life insurance policy — which is a kind of permanent life insurance — can provide policyholder dividends. You can use the dividends to buy more coverage, take a cash payment or decrease your annual premium, or you can save the money with your insurer and earn interest. Over the long term, you’re probably better off owning permanent than you are continually renewing term insurance.