Published at 3 May 2021

Permanent life insurance

Protection for life

Your life may change but your coverage won’t. Help provide lifetime financial security for your loved ones, while building your wealth.

What is permanent life insurance?

It’s guaranteed lifelong coverage that protects the people you care about. But it’s more than just insurance. Over time your policy can build value you can access for cash during your life, with certain tax implications.

You can access money in your policy through a loan or a withdrawal. And when you die, the people you’ve chosen receive a tax-free payment, similar to term life insurance.

What types of permanent life insurance are available?

Both participating and universal life offer lifetime coverage and the opportunity for tax-free cash growth, but they’re structured differently.

Participating life insurance
  • Guaranteed cash values
  • Guaranteed insurance payout
  • May pay a yearly dividend
  • Premiums stay the same
Universal insurance
  • Guaranteed cash values on some policies
  • Choose your investment options
  • Generally less expensive than participating life insurance
  • Flexibility in premium payments
How much insurance coverage do you need?

Ideally, you want to make sure your debts are covered, so you don’t leave major expenses behind for your loved ones.

Here are a few things to consider:

  • Your income
  • Net worth
  • Family needs
  • Debt
  • Other insurance you have
How much does it cost?

Generally, permanent insurance costs more than term insurance, but there are a lot of factors that determine the cost of your policy, including:

  • Age

    Generally, insurance is less expensive when you’re younger.

  • Health

    Family history, chronic diseases and lifestyle can increase costs.

  • Gender

    Women live longer than men on average, so insurance may cost less.

  • Occupation

    If you have a dangerous job, your insurance costs can be higher.