Why are Canadian Life Insurance Companies removing Permanent Insurance

Many Canadian life insurance companies are discontinuing their permanent life insurance policies as they are no longer finding them profitable. Many of these insurers are finding it difficult to invest in such a way that will cover their longer-term liabilities.  What does that mean for us consumers, well we best  jump on board and get our permanent life insurance in place quickly!

There are so many benefits to permanent life insurance and if the insurers are cancelling these policies out it means that they are more beneficial to us as the consumer than they are to the insurer.  Have a look below for some of the key benefits to owning a permanent life insurance policy.

Key Benefits to Buying Permanent Insurance

1. You get insurance coverage for as long as you live—at the same guaranteed rates.

Also known as level premiums, you pay the same amount month after month and are covered for life.

2.  Build a Cash Value

Permanent insurance also has a known feature called a cash value or cash-surrender value. Whole life and Universal life policies can build a tax-sheltered cash value over time which can be utilized to supplement their retirement, taken out in case the insured has to cancel the policy and even used to pay the monthly premiums in case the insured finds themselves temporarily out of work.

3. Permanent life insurance policies are under severe pricing scrutiny and may be extinct very soon.

Because of the low interest rates and the sharp decline in long term Government of Canada bond rates, permanent life insurance policies are undergoing dramatic price increases and or being discontinued altogether.  Now is the perfect time to take advantage of the guarantees that whole life and universal life policies (both permanent life insurance) have to offer.

4. Permanent policies offer tax-deferred investment opportunities.  

Universal Life policies and many whole life policies give the insured an opportunity to increase the death benefit tax free or accumulate tax exempt cash value within the policy. Depending on the time of withdrawal of the cash value, this tax-exempt accumulation can pass totally tax-free to the estate or beneficiary or may result in the policy owner paying some tax. Either way, permanent life insurance offers the insured tax-deferred investment opportunities.

For more details on permanent life insurance in Canada, please contact Jack Bendahan at 905-761-9986 or visit our quote page at www.lifeman.ca

Posted by Jack Bendahan