Advertisement
Whole life insurance is one of the life insurance options available in Canada. Is it right for you? Find out how it works and how it differs from term life insurance.
Whole life insurance is a permanent form of life insurance. As long as you pay your premiums, you will be covered and your beneficiary will receive a tax-free lump-sum benefit when you die. The advantage of whole life insurance is that it also has cash value, like an investment, that builds up over time. That amount can be paid to you if you decide to cancel the policy, or it can be passed on to your estate when you die.
Premiums on whole life insurance remain the same for the entire time the policy is in place. The payments tend to be more affordable the younger you are when you purchase a policy. Having said that, the premiums are significantly higher than what you’d pay for term insurance, and the payout can be lower than that of term insurance.
Example: “I’m looking at getting whole life insurance because I’ll be covered for my entire life.”
Share this article Share on Facebook Share on Twitter Share on Linkedin Share on Reddit Share on Email
CMHC says rents in some major cities are easing due to increased supply and slower immigration, but renters are...
Many retailers offer buy now, pay later programs to encourage spending. Understand the risks, including how your BNPL data...
New for 2025, the Canada Strong Pass could change your summer plans—find out where it works and why it’s...
If you’re travelling outside Canada, or even outside your own province or territory, here’s why you should consider buying...
Whether you’re heading out of town for the weekend or a round-the-world trip, protect your property with these tips.
Canadian shoppers and brands have gone “elbows up” to promote and support home-grown products, explore local destinations and more.
A MoneySense reader asks about survivor benefits for spouses. Here’s how defined benefit and CPP survivor payments work in...
The latest Statistics Canada figures are a step in the right direction, but the odds of an interest rate...
Created By
Ratehub
If you’re thinking about buying your first recreational property, now may be the right time. Here's what to know.