Whole Life Insurance (Permanent)

Whole Life Insurance offers life-time protection and with this type of coverage, you'll enjoy guaranteed death benefits and fixed premiums that won't change over time. And here's the best part: while purchasing Whole Life Insurance, you can choose to pay off your policy over a period of 10, 20, or 65 years, giving you greater flexibility and control over your premium payments. To be more clear, with Whole Life Insurance, you have greater control over how you pay for your coverage. You can choose to pay off your premiums quickly or distribute them evenly over your entire lifetime. This unique feature ensures that you get the protection you need.

Participating Whole Life Insurance

Participating Whole Life Insurance gives you the opportunity to benefit from the accumulated gains of your policy. Unlike other life insurance policies, where you're simply a policyholder, with participating whole life insurance, you become a participant in the company's profits. This means that you have the potential to receive bonuses or dividends based on the performance of the company. So if you're looking for a life insurance policy that not only provides protection but also the possibility of financial gain, Participating Whole Life Insurance may be the right choice for you.

Non-participating Whole Life Insurance

If you're looking for a straightforward life insurance policy without any added bells and whistles, Non-Participating Whole Life Insurance may be the right choice for you. Unlike Participating Whole Life Insurance, Non-Participating policies in Canada do not offer bonuses or profits. Instead, they provide policyholders with a range of assured benefits that increase over time. These benefits can be used to achieve important life goals, protect your assets, or help your loved ones make funeral arrangements. Over time, the accruals from your policy can add up to a significant sum, providing you with peace of mind and financial security for the future.

So whether you're looking for coverage that offers more benefits and flexibility or a more straightforward, predictable policy, Whole Life Insurance has something to suit your needs.

Lifetime Coverage

Whole life insurance provides coverage for the entire lifetime of the insured, as long as the required premium payments are made. This means that your loved ones will receive a death benefit no matter when you pass away, providing long-term financial protection.

Guaranteed Death Benefit

Whole life insurance offers a guaranteed death benefit, which means that the amount your beneficiaries will receive upon your passing is predetermined and will not decrease over time. This provides peace of mind, knowing that your loved ones will be financially secure in the event of your death.

Cash Value Accumulation

Whole life insurance builds cash value over time. A portion of your premium payments is allocated to the cash value component, which grows on a tax-deferred basis. The cash value can be accessed during your lifetime through withdrawals or policy loans, providing a source of funds for various financial needs such as education expenses, emergencies, or supplementing retirement income.

Dividend Earnings (Participating Policies)

Whole life insurance policies may be participating, which means they are eligible to receive dividends from the insurance company. Dividends are a share of the company's profits and can be used in different ways, such as purchasing paid-up additional coverage, reducing premiums, or accumulating in the cash value. Dividends are not guaranteed and depend on the performance of the insurance company.

Premiums That Stay Level

With whole life insurance, the premiums are typically fixed and remain level throughout the life of the policy. This ensures stability and predictability in your financial planning, as you know exactly how much you need to pay each year to maintain the coverage.

Estate Planning Benefits

Whole life insurance is often used as a tool for estate planning. The death benefit can be utilized to pay estate taxes or provide an inheritance for loved ones. It can help preserve your wealth and pass it on to future generations.

Potential for Policy Ownership Dividends

Some insurance companies offer policy ownership dividends, which are additional dividends given to policyholders based on the size and performance of their policies. These dividends can be used to reduce premiums, increase the cash value, or purchase additional coverage.

Whole life insurance offers a combination of lifelong coverage, cash value accumulation and various financial benefits. It provides a comprehensive solution for individuals who want permanent protection and the opportunity to build cash value over time. At MyLegacy Insurance Services, our knowledgeable advisors can guide you through the features and benefits of whole life insurance and help you determine if it aligns with your financial goals and needs.

Protection for life

With Whole Life Insurance, you get lifelong protection that provides a beautiful sense of comfort and security. Knowing that your loved ones will receive a guaranteed death benefit, no matter when you pass away, offers peace of mind and assurance that your legacy will be protected for years to come.

Standard premiums

With Whole Life Insurance, your premiums will remain constant throughout the life of your policy. Some policies even allow you to pay off your coverage early, which means you won't have to make any further payments. Even if you choose the same, your insurance will remain in effect until you pass away, offering lifelong protection.

Build cash value

Whole Life Insurance offers a unique selling point in the form of its cash value. Your policy includes a cash value account that grows over time and can be used as collateral for loans or as a source of credit. As the cash value of your policy accumulates over time, it can also be used in case of emergencies. You can easily take out cash as a policy loan or collateral loan, providing you with an added layer of financial security and flexibility when you need it most.

Tax benefits

The death benefit payout of a whole life insurance policy is tax-free. Additionally, the cash value of the policy grows on a tax-favoured basis. As long as you do not withdraw more than the amount you have paid, you won't be taxed on any withdrawals you make. You can also access your policy's cash value through tax-preferred methods, such as policy loans or collateral loans, without incurring any taxes on the loan amount. This tax advantage makes this policy a smart financial planning option.

Potential Dividends

Whole life insurance plans come with the added benefit of yearly dividends, which can be reinvested back into the policy to boost the cash value. This can be a smart retirement planning strategy to accumulate more funds over time. Alternatively, you can use the dividend payouts to pay for your premium or increase your coverage level or do both.

Age

Age is a crucial factor since premiums increase as you age. It is recommended to get coverage as early as possible to lock in a lower rate and potentially save on overall payments. However, it's essential to balance this with your long-term financial goals and budget. We can assist you in identifying the most suitable policy for your needs.

Gender

Typically, men are considered higher risk due to statistical variables associated with life expectancy, and may therefore have to pay higher rates compared to women.

Health

Your health status is a significant factor in determining the cost of whole life insurance. Pre-existing medical conditions, smoking, substance abuse and a history of serious illnesses in your family can increase the cost of your policy. Insurance companies prefer to insure individuals with low health risks, which may result in higher premiums for those with health concerns.

Payment Time

The duration of premium payments can also impact your whole life insurance quote. If you choose to pay off your premiums in a shorter period, such as 10 years, your rate may be significantly higher than if you paid premiums throughout your lifetime.

Assurance Amount

While a whole life policy's death benefit is predetermined and guaranteed, choosing a higher face value or a higher guaranteed return rate will result in higher premiums.

Dividends

Participating policies may pay dividends, resulting in slightly higher insurance prices compared to non-participating policies. However, these dividends can also be used to reduce your out-of-pocket expenses on premiums.