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8 Reasons Why You Should Consider Permanent Life Insurance

September 25, 2022

InsLyf- Permanent Life insurance

With so many options in the market, choosing one comprehensive life insurance for yourself and your loved ones can be fairly difficult. There are specific policies such as critical illness insurance which will make sure that you don’t face any financial crisis during the treatment of a life-threatening condition, and there's the term life insurance policy which is affordable and widely popular amongst Canadians. But the fact of the matter is, that these policies lack in some aspects and there is the hassle of renewing them once the term expires. That’s where permanent life insurance comes in. In this blog post, we will discuss eight reasons why you should get permanent life insurance.

Eight practical reasons why you should choose permanent life insurance

Alongside death benefits, permanent life insurance comes with several advantages that can make it very attractive as a life insurance policy. Some of the reasons why you should purchase permanent life insurance are:

  • Cash component: The policy comes with a cash component that saves any extra premium that you pay towards the insurance. This component grows over time and you can withdraw from this component at any time you want. Afterwards, you can replenish the funds and continue
    building your savings.

  • Fixed premium: Once you set in the premium for your policy there will be no change throughout the lifetime of the product. In the long run, these premiums will feel much more affordable. If you are planning your retirement, permanent life insurance means the guaranteed availability of a life insurance policy in your golden years at a fixed cost.

  • Fixed benefits for beneficiaries: The decisions that you take now will set up your future when you are no longer here to financially support your dear ones. With this policy, you can be sure that a guaranteed sum of money will be shared with your nominated beneficiaries as a form of death benefit.

  • Tax advantages: The cash value that grows through the policy is on a tax-deferred basis. You will have the option to borrow against the value if you need a loan. The tax-free assets that you leave to your estate heirs will be quicker to access than other assets.

  • Dividends: If you purchase permanent life insurance, you may receive dividend payments on your policy. These dividend payments can be reinvested in your policy and can help you build cash value quickly.

  • For your retirement: You can effectively use this policy to build supplemental retirement income. After some time, if you have built up enough cash value, you can use the funds in a tax-advantaged manner as a part of your retirement savings. The benefit here is, that the funds will be insulated from fluctuations in the market.

  • Charity or non-profit donations: You should know that charitable giving can provide income tax benefits if you are alive. If you are donating to a charity through this policy in a higher-
    earning year, then you may be entitled to an income tax deduction.

  • No renewal: You will never have to think about renewing this policy. As long as you are paying the premiums, the policy will remain active.

We hope that we have shared enough reasons for you to make a wise decision of choosing permanent life insurance as your insurance policy of choice. However, if you need more details, contact your local insurance broker.