Lifetime Protection With Long-Term Value
Life insurance isn’t only about replacing income—it can also be a powerful long-term planning tool. Permanent Life Insurance provides lifelong protection, predictable benefits, and the ability to build value over time. It is designed for individuals and business owners who want certainty, stability, and strategic planning beyond basic coverage.
We help clients across Quebec and Ontario understand permanent life insurance options and compare solutions offered by leading Canadian insurers. Our role is to ensure coverage fits your financial goals, family needs, and long-term plans—while remaining fully compliant with provincial regulations.
What Is Permanent Life Insurance?
Permanent Life Insurance is a type of life insurance that:
• Covers you for life, not just a set term
• Pays a tax-free death benefit to beneficiaries
• Includes a cash value component (depending on the policy type)
• Can support estate, tax, and business planning
As long as premiums are paid according to the contract, coverage remains in force for your entire lifetime.
Why Choose Permanent Life Insurance?
Canadians choose permanent life insurance when they want:
• Guaranteed lifetime coverage
• A predictable inheritance for beneficiaries
• Protection against future insurability concerns
• Tax-efficient estate planning
• Wealth preservation
• Support for business succession or buy-sell agreements
• A disciplined, long-term financial strategy
Unlike term insurance—which expires—permanent insurance is designed to last.
Types of Permanent Life Insurance
Canadian insurers offer several forms of permanent life insurance. Each serves a different planning purpose.
1. Whole Life Insurance
Whole Life Insurance provides guaranteed coverage with fixed premiums and a guaranteed death benefit.
Key features:
• Premiums remain level
• Coverage lasts for life
• Cash value grows inside the policy
• Dividends may be paid (for participating policies)
• Predictable and stable structure
Participating Whole Life policies may allow dividends to be used for:
• Paid-up additional insurance
• Premium reduction
• Cash accumulation
• Enhanced death benefits
Whole Life is often used for estate planning and long-term wealth transfer.
2. Universal Life Insurance
Universal Life Insurance combines permanent insurance with investment flexibility.
Key features:
• Lifetime insurance protection
• Flexible premium structure (within limits)
• Investment component with multiple options
• Tax-advantaged growth inside the policy
Universal Life allows policyholders to adjust contributions and choose how the investment portion is allocated. It is commonly used by business owners and high-income individuals.
3. Limited-Pay Permanent Insurance
Limited-pay policies allow premiums to be paid over a fixed period (e.g., 10, 20 years, or to age 65), after which the policy remains fully paid up for life.
This option is attractive for individuals who want:
• No premiums in retirement
• Lifetime protection
• Predictable long-term planning
How Permanent Life Insurance Builds Value
Depending on the policy type, permanent life insurance may accumulate cash value that:
• Grows on a tax-advantaged basis
• Can be accessed through policy loans or withdrawals
• May help fund retirement income strategies
• Can be used to cover emergencies or opportunities
• Enhances estate value
Cash values are not guaranteed in all policy types and should be reviewed carefully as part of a broader financial plan.
Permanent Life Insurance for Estate Planning
Permanent life insurance is widely used to:
• Cover taxes due at death
• Protect family wealth
• Provide liquidity for heirs
• Equalize inheritances
• Fund charitable giving
• Avoid forced sale of assets
Because death benefits are generally paid tax-free, they can significantly simplify estate settlement.
Permanent Life Insurance for Business Owners
Business owners often use permanent life insurance for:
• Buy–sell agreement funding
• Key person protection
• Business succession planning
• Covering capital gains taxes
• Corporate wealth preservation
• Retained earnings planning
Corporate-owned permanent insurance can also support long-term tax planning when structured properly with professional guidance.
Who Should Consider Permanent Life Insurance?
Permanent life insurance may be appropriate for:
• Individuals with long-term dependents
• Parents planning for intergenerational wealth transfer
• High-income earners
• Business owners and shareholders
• Professionals with incorporated practices
• People with significant assets or real estate
• Those seeking tax-efficient estate solutions
It is not designed for everyone, which is why a proper review is essential.
Permanent vs Term Life Insurance
| Term Life | Permanent Life |
|---|---|
| Coverage for a set period | Coverage for life |
| Lower initial cost | Higher cost, long-term value |
| No cash value | Cash value accumulation |
| Income replacement focus | Estate and wealth planning focus |
Many Canadians use both, combining term insurance for short-term needs and permanent insurance for long-term objectives.
Tax Considerations
While tax rules vary based on structure and ownership:
• Death benefits are generally tax-free
• Cash value grows tax-advantaged inside the policy
• Corporate policies may create additional planning opportunities
• Loans and withdrawals require careful planning
We coordinate with accountants and legal professionals to ensure compliance with CRA rules and provincial guidelines.
Our Role as an Independent Advisory Firm
We help clients:
• Determine whether permanent insurance is appropriate
• Compare Whole Life vs Universal Life options
• Review guarantees, costs, and long-term projections
• Align insurance with estate and business plans
• Structure policies for tax efficiency
• Coordinate with lawyers, notaries, and accountants
• Ensure compliance with AMF and FSRA standards
Our approach is educational, transparent, and tailored to your goals.
Plan With Confidence for the Long Term
Permanent Life Insurance is more than protection—it’s a planning tool that can support your family, your business, and your legacy for decades to come.
If you’re considering permanent coverage or reviewing an existing policy, the right guidance makes all the difference.
Book a consultation with us to explore permanent life insurance options and build a strategy aligned with your long-term goals.
