Insurance policies are formal and legal contracts that people sign with the assistance of an insurance professional in order to secure something in particular and in the scenario that a tragic misfortune occurs. 

One can commonly find insurance companies that sell a variety of insurance policy packages for the protection of their vehicles, houses (and other belongings or assets), as well as for their health and even for personal injuries or medical fees. Such policies ensure that individuals are well protected in the case a tragic event occurs.

For instance, if you have a car, it is a good idea to contact an insurance company and sign a contract with them, stating that, in the event of an accident, you or your loved ones can be compensated after the case is settled.

With that being said, people can apply for insurance policies for their vehicles, mortgages, businesses, and even for their lives—that means permanent life insurance. With a permanent life insurance policy, one can guarantee and remain sure that, in the event of a passing, their family is financially secured.

If you wish to know what a permanent life insurance policy is and the benefits of applying for this insurance policy in Toronto, then keep on reading. We will provide details on the definition of permanent life insurance, how this policy works in Canada, and how we can help you with finding the policy that is most suitable for you.

What is permanent life insurance?

Permanent life insurance, as the name already suggests, is a life insurance policy in which any individual who signs it guarantees lifelong coverage for themselves and their loved ones. In other words, it is lifelong insurance with no expiration date. 

Different insurance companies offer various packages of different types of permanent life insurance coverages. Some honorary mentions go to universal life insurance, whole life insurance, or participating life insurance. 

These types of permanent life insurance policies have diverse nomenclatures since they differ in certain points. Then, what is the difference among these different kinds of life insurance? Depending on the company and the packages they offer, life insurance policies have divergent characteristics in terms of:

• Coverage ranges

• Included death benefits

• Monthly cash amount of the insurance

• Premium benefits

Regardless of what insurance company you have contacted or what kind of package they have suggested or you have chosen for yourself, permanent life insurance policies build a constant flow of cash value in which you can attain through a withdrawal or a loan.

Just how we build credit over time due to credit card usage, a permanent life insurance works in a similar manner. That is because permanent life insurance policies are investments of high cost that many people have the chance to build with time. 

This allows them to leave a secure financial future for their loved ones upon their passing.

The Benefits of a Permanent Life Insurance Policy Coverage

If you are interested in signing for a permanent life insurance policy, it is not enough to understand everything that this policy entails – but also any particular singularities offered in them. That is because permanent life insurance policies come with a number of incredible benefits.

These benefits may vary depending on the insurance company. However, the most relevant advantages of permanent life insurance include the following:

Lifelong Coverage for You

As this policy is permanent, you can rest assured that you will receive coverage throughout all of your life. Permanent life insurance does not expire and, therefore, you do not need to renew it. This is the number one benefit of this type of policy.

Fees That Do Not Rise

With time, your premium benefits are unlikely to change—that is, any fees you pay on a monthly or yearly basis will never rise. In some cases, you may even commit to your payments for a certain period of time, only to conclude those payments and then never worry about them again.

You Can Save a Lot More Money

Permanent life insurance policies hold a lot of cash value to them, given that some insurance packages have a special savings tool. This savings option allows people to earn interest with time and, consequently, grow their money continuously. 

In most cases, this interest is tax-preferred, meaning people only pay taxes on such interest if they withdraw their funds.

Death Benefits

With all of this accumulated wealth over time, your loved ones can benefit from your permanent life insurance policy as well. Death benefits allow families to use this money to pay for their debts, mortgages, cars, or any other constant payment they need to make to survive.

Different permanent life insurance policies contain different death benefits, and you can choose which is best for your family.

How do permanent life insurance policies work in Canada?

The bureaucracy around permanent life insurance policies is very standardized. In Canada, the entire process does not differ from what has been explained in this article.

For people who live in Canada, they can sign up for a permanent life insurance policy starting at the age of 18. While a part of the money for the insurance goes into paying for the cost of this policy and its benefits, another part goes into the savings tool, which grows money over time and is tax-free (as previously mentioned).

In the end, families can receive this cash value amount—either in installments or all at once—to use it however they need.

Marathon Insurance Group Offers Protection for What Matters Most to You

Are you interested in the life insurance policies that we offer and are wondering which one is most suitable for you? 

At Marathon Insurance Group, we have a variety of permanent life insurance services for all our clients across Toronto and the GTA. To get the best coverage for you, talk with one of our experts at 844-429-0837 and get a quote today!