What is Whole Life Insurance?

Whole life insurance, like all Canadian life insurance policies, pays out a tax-free death benefit to the beneficiaries if the person insured dies. The key difference with whole life is the cash value associated with the policy.

Whole life insurance policy holders receive annual dividends from the life insurance company. These dividends create a growing cash value in the policy. As the cash value grows, the death benefit (payout upon death) also grows.

Many whole life policies offer a limited pay-period, meaning that you can have a fully paid-up policy in 15 or 20 years. This means that the premiums are higher initially, but after 20 years, you no longer have to pay any premiums, while continuing to receive dividends and a growing insurance value.

Over the long-term, whole life insurance policies can pay for themselves. At the end of your pay period, it is possible that the cash value accumulated is higher than the total amount of premiums you've paid into the policy. This is almost like getting free life insurance coverage! Let us show you how do do this.

Whole life insurance cash values are a great way to fund your retirement! You can design your whole life policy to create a "pension" when you retire, and have a steady cash flow while maintaining your insurance coverage. Ask us how you can do this!