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Whole life insurance

Whole life insurance is one of the most common types of life insurance in Canada, but it's not for everyone. See if it's right for you.

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Whole life insurance, compared

Whole life insurance is one of the most popular types of life insurance coverage in Canada, being perhaps 'standard' permanent life insurance plan. Lasting your entire life, whole life insurance never expires, so is great for people who want to maintain their life insurance coverage into their old age.

Whether or not whole life insurance is the right option for you depends on a few factors, though. Learn more about whole life insurance below, and compare some quotes when you're ready.

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Frequently asked questions

Whole life insurance: Common questions

What is whole life insurance?

Advantages of whole life insurance

What's the differenece betwee whole life insurance and universal life insurance?

What's the difference between whole life insurance and term life insurance?

Who has the best whole life insurance?

Compare whole life insurance quotes

You won't know the cost of whole life insurance for you until you receive a quote. Get multiple quotes today so you can make the best decision for you and your family.

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expert analysis

How to get the most out of whole life insurance

Whole life insurance is one of the major categories of coverage in Canada, and anyone getting life insurance needs to give it some serious thought. However, whether whole life insurance is the right option for you is not a simple question! Let me try and give you a little guidance.

When you need coverage for a limited period of time, such as the life of your mortgage, or until your children grow up, term life insurance is probably the best bet. However, if you want your family to recieve a death benefit when you die, even in your old age, then whole life insurance is the way to go.

Whole life insurance and estate planning

The other main use of whole life insurance is for estate planning. When someone dies in Canada without a partner, they are assumed to have disposed of all their wordly possessions at the market price, moments before they pass away. As a result, capital gains taxes will be payable, and their estate will need to submit a final tax return and pay these taxes.

If you have sizeable assets that have increased in value, like shares in a business or an investment property, this gain in value will be taxed when you die. Without a life insurance death benefit, that could result in your family having to sell these asset in order to pay the tax bill. Whole life insurance is the perfect product to protect your family from that occuring, allowing them to inheret the assets in full.

A lifelong investment

Of course, whole life insurance also gives you a cash surrender value, or CSV. This is how much you would be paid if you surrendered the policy, but it's also an asset you can borrow against, instead of taking out an unsecured line of credit. That's a useful feature you won't get from a term life insurance policy.

However, if you are primarily thinking about whole life insurance as a way to make long term investments for your family, I'd highly recommended you look into universal life insurance as well. It won't always be a better option, but universal coverage has some serious advantages in this space.

The bottom line

As with all big financial decisions, the best thing you can do is educate yourself, and shop around. You've already done a lot of work on the education part, so the next step is to compare quotes for life insurance. Whatever you choose, I hope it serves you well!

 


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Author Bio

Matt Hands, Business Director of Insurance

Matt started his professional career at CARPROOF where he honed his marketing and analytical skills for over 3 years. Matt then took his wealth of experience to Ratehub.ca’s Toronto offices, working with insurance providers, agents, and brokers to grow and expand the Insurance business unit. He is a thought leader in the community and a valuable insurance resource to respected publications like the Globe & Mail, Toronto Star, Huffington Post, Yahoo News, and 680 news radio in Toronto.

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