Enquiry

Enquiry Now

For more information. Please complete this form.





    info@puneetgoyal.ca

    Sunday - Friday: 9 am - 8 pm

    Get a quote Calculator Help
    insucom

    Whole Life

    WHAT IS WHOLE LIFE INSURANCE?

    Whole life insurance is a type of permanent life insurance that provides coverage for the entire lifetime of the insured individual, as long as premiums are paid as agreed. Unlike term life insurance, which offers coverage for a specific term, whole life insurance offers lifelong protection. Whole life insurance is often chosen by individuals seeking long-term financial protection and estate planning benefits. It offers a combination of lifelong coverage, cash value accumulation, guaranteed premiums, and death benefit payout, making it a comprehensive solution for wealth preservation and legacy planning. However, whole life insurance premiums tend to be higher compared to term life insurance, reflecting the lifelong coverage and cash value features of the policy.

    BENEFITS OF WHOLE LIFE INSURANCE

    Whole life insurance offers several key benefits that make it an attractive option for individuals seeking long-term financial security and estate planning. These benefits include:

    1. Lifelong Coverage: Whole life insurance provides coverage for the entire lifetime of the insured individual, ensuring that the policy remains in force as long as premiums are paid. This lifelong coverage offers peace of mind, knowing that loved ones will receive a death benefit payout whenever the insured passes away.
    2. Fixed Premiums: Premiums for whole life insurance policies are typically fixed and guaranteed for the life of the policy. This means that policyholders can enjoy predictability and stability in terms of premium payments, without worrying about premiums increasing as they age or if their health deteriorates.
    3. Cash Value Accumulation: A portion of the premiums paid into a whole life insurance policy accumulates as cash value over time. This cash value grows on a tax-deferred basis and can be accessed by the policyholder through policy loans or withdrawals. The cash value component provides a source of liquidity and financial flexibility, allowing policyholders to access funds for emergencies, opportunities, or supplemental income during retirement.
    4. Guaranteed Tax-Free Death Benefit: In the event of the insured’s death, the beneficiaries receive a tax-free death benefit payout from the whole life insurance policy. This death benefit can be used to cover final expenses, replace lost income, pay off debts, or provide financial security to surviving loved ones. The tax-free nature of the death benefit ensures that beneficiaries receive the full amount of the benefit without any tax implications.

    Overall, whole life insurance offers comprehensive coverage, financial stability, and tax advantages, making it a valuable tool for long-term financial planning and wealth preservation.

    HOW DOES WHOLE LIFE INSURANCE WORK IN CANADA?

    In Canada, a whole life insurance policy offers three important guarantees in exchange for monthly or annual premiums: coverage that won’t expire, fixed premiums and a guaranteed death benefit to your beneficiaries.

    The amount of money your beneficiaries receive depends on how much life insurance coverage you buy.

    Some whole life insurance policies also include a savings portion called the cash value. Savings can grow over time on a tax-preferred basis, meaning you won’t have to pay tax on any cash-value growth.

    Answers to Common Questions

    In general, you pay premiums for whole life insurance until you pass away. But some products give you the option of paying for lifetime coverage over 10, 15, or 20 years. These options will raise your premiums since you are front loading the payments.

    The death benefit from a whole life insurance policy is tax-free. However, some whole life policies come with a cash value component, which can grow on a tax-preferred basis. This means you won’t have to pay tax on cash-value growth. Please note, there may be tax implications from borrowing against your cash value or surrendering your policy.

    If your whole life insurance policy comes with cash value, you can borrow against a portion of it. How much you can borrow depends on how much you have available in your policy's cash value.

    If you stop paying, the term life policy lapses and the insurance company will no longer pay a death benefit if you pass away.

    For people with long-term financial goals that include providing a death benefit for their beneficiaries, whole life insurance is worth considering.