Permanent life insurance
Permanent life insurance covers you for your entire life. It includes a cash value component that grows over the years and can be accessed if needed (loans, supplemental income, estate planning).
Regular permanent vs participating life
A regular permanent life policy offers a guaranteed death benefit and a cash value schedule defined in the contract. It is often used to:
- Cover final expenses and estate settlement costs.
- Provide a lump sum for heirs.
- Stabilize and protect family wealth over the long term.
Participating whole life insurance provides lifetime protection while allowing you to build cash value that you can access if needed. With participating policies, you may receive dividends that can increase coverage or be used in different ways.
One exception: some “Term to 100” products are structured like permanent coverage but may be classified differently depending on the insurer.
What needs does it cover?
- Estate planning and wealth transfer.
- Lifetime protection for a loved one (spouse, child with special needs, etc.).
- Long‑term tax and wealth strategies.
- Need for stability: guaranteed premiums and death benefit, with no expiry date like term insurance.
Points à considérer
- Premiums are higher than term insurance, but protection and cash value last for life.
- Cash value is an asset: it can be used as collateral for a loan or for future needs.
- With participating policies, dividends are not guaranteed: it is important to understand the illustration scenarios.
Permanent or term: how to choose?
Term insurance covers a defined period and is ideal for temporary needs (mortgage, working years). Permanent insurance is designed for lifetime needs (estate planning, wealth protection). In many situations, a mix of both can be optimal.
Our advisors can recommend a strategy that balances your monthly budget and long‑term needs.
Client example — Participating life insurance
1. Long‑term protection and accumulation
Profile: Alexandre, 30, wanted a financial strategy that would both protect his family and build long‑term capital.
Solution: He took out a participating life policy with premiums payable over only 20 years.
Objectifs :
- Have permanent protection.
- Build cash value over time through policy dividends.
- Create a financial asset that can be accessed later.
2. Situation many years later
After about 20 years, Alexandre had finished paying his policy. Thanks to cash value growth and dividends, his contract had built up significant liquidity.
3. Using the available cash value
When his son wanted to buy his first home, Alexandre decided to help with the down payment. He then:
- Borrowed $50,000 from the policy’s cash value.
- Used this money to help with the down payment.
4. Résultat
- ✔At age 55, Alexandre had around $130,000 of accumulated value in his policy.
- ✔His son received the help he needed for his down payment.
- ✔Alexandre kept his life insurance protection in force.
- ✔The contract continues to exist and protect his family.