Whole Life Coverage with Permanent Insurance in Ontario

Permanent life insurance in Ontario guarantees 3 things- death benefits, lifetime protection, and cash value growth. These 3 benefits are so significant that many people use permanent life insurance for their financial goals.

Permanent life insurance comes in several forms – whole life insurance, universal life insurance, and participating life insurance.

These 3 types of coverage never expire as long as the premiums are paid. Each type has unique benefits for the insured and his dependents but they also have common characteristics.

If you are looking for lifetime insurance protection for you and your loved ones, get whole life coverage with permanent life insurance.

Understand the benefits of permanent life insurance and the types of policies you can choose from. Most importantly, compare insurers and their prices to get the lowest available premiums.

Get started by filling out the short online form on this page to get access to the best permanent life insurance rates in Ontario.

Why Choose Permanent Life Insurance in Ontario?

Permanent life insurance offers unique benefits for people who want lifelong protection and investment growth.

Here are the key benefits of permanent life insurance that you should consider:

Lifetime Coverage – Guaranteed payout to your beneficiaries, regardless of when you pass away.

Cash Value – Some of your premiums go into a savings fund that grows over time. You can borrow or withdraw these funds when the need arises.

Level Premiums – The premiums stay the same throughout your lifetime. It may seem expensive at first but over time, they become less so.

Estate Planning Benefits – Offers a tax-free legacy for your loved ones.

There are cheaper options for life insurance, particularly term life insurance. In contrast, term life insurance is temporary as it is valid for a set period only. If you wish to continue your coverage, you will need to reapply, at which time your premiums will be higher.

You can find out if permanent life insurance is the right choice for you by speaking with our life insurance partners.

Fill out the short online form on this page and receive FREE and NO OBLIGATION quotes.

What are the types of Permanent Life Insurance in Ontario?

Permanent life insurance, including whole life and universal life insurance, gives lifetime coverage and significant financial rewards. The following are the types of coverage you can consider:

Traditional Whole Life Insurance

This type of insurance policy guarantees lifetime coverage of the insured for as long as the premiums are paid for. The policy will never expire, and death benefits are paid regardless of when it happens.

Cash value also grows over time, building a savings fund for the insured’s beneficiaries. It is a living benefit, as the money can be borrowed and returned in increments or withdrawn.

The premiums never change, making it cost-effective in the long run.

Participating Whole Life Insurance

This type of whole life insurance policy lets policyholders earn dividends from the insurance company’s profits. It builds additional cash value for the insured.

Aside from lifetime coverage, dividends can be used to increase the amount of coverage, withdrawn as cash, or pay for premiums. The dividends are usually tax-free.

Limited Pay Whole Life Insurance

Generally, the insured pays premiums for whole life insurance during his lifetime. One can only stop paying premiums if the policy is returned or canceled.

With limited pay whole life insurance, you can pay early for your coverage. The payment duration is set to a fixed period (7, 10, 15, 20, or age 65). Regardless of the payment duration you choose, you will still enjoy lifetime protection.

The premiums are higher as they are not spread over a lifetime. Cash value may grow faster since the premiums are higher. But when the payments cease, so does cash value growth.

Individuals with higher incomes may want to get limited pay whole life insurance and pay for premiums early. This works for those who expect to earn less during retirement and want to ensure they are covered.

Universal Life Insurance

Universal life insurance combines whole life coverage with an investment component. Policyholders can adjust their premiums and amount of coverage while building tax-free savings.

This type of policy builds cash value that you can borrow from, withdraw, or used to pay for premiums.

The investment growth is tax-deferred which means you don’t pay taxes on it unless you withdraw the funds. The death benefits given to your beneficiaries will be tax-free.

People who want life insurance coverage with investment growth can consider universal life insurance. It is ideal for business owners or those needing estate planning solutions or high-earning individuals who need tax-sheltered investment opportunities.

The real cost of Permanent Life Insurance

Permanent life insurance in Ontario can cost as little as $15 a month to $500 a month, depending on factors such as:

Age: Premiums are higher for older individuals.
Health: People with pre-existing conditions and smokers will have higher premiums.
Gender: Women tend to have lower insurance rates than men.
Desired coverage: The higher the coverage amount, the higher the premiums.
Type of policy: Whole life, Participating Life, or universal life insurance.

For a 40-year-old non-smoker, permanent life insurance could range from $150 to $400 per month for a $250,000 policy.

Examples of Permanent Life Insurance Premiums by Age Group

Whole life insurance premiums vary based on age, health, smoking status, and amount of coverage.

Below are examples of estimated monthly premiums for non-smokers in Ontario for a $250,000 policy.

Age	Monthly Premiums (Non-smokers)	Monthly Premiums (Smokers)
20	$75 – $150	$100-$220
30	$110 – $180	$150- $275
40	$125 – $250	$180-$350
50	$250 – $400	$300- $500

Monthly premiums of smokers are 30% to 60% higher than non-smokers.

Cost Comparison of Term Life vs. Permanent Life Insurance

You may be wondering if term life insurance would be better for you as it is cheaper.

To give you an idea of the cost, we present below a cost comparison of the two types of life insurance for you to consider.

Just keep in mind that term life insurance is cheaper because it will cover you for a specified period (5, 10, 15, 20 years).

If you pass away after the policy term, your beneficiaries don’t receive any benefits.

Term life insurance has no cash value – if you cancel your policy or when your policy expires, you won’t get any premiums back.

Cost Comparison of Term Life Insurance and Whole Life Insurance
Coverage Amount	Whole Life (40 years old, non-smoker)	Term Life Insurance (40-year old, non-smoker) 20 years coverage
$250,000	$150 – $400/month	$25 – $60/month
$500,000	$300 – $800/month	$50 – $80/month
$1 Million	$600 – $1,500/month	$60 – $150/month

Whole life insurance costs 5-10 times more than term life insurance for the same amount of coverage.

Is it worth buying Whole Life Insurance?

Considering the fact that whole life insurance is a lot more expensive than term life insurance, is it worth the price?

Whole life insurance is ideal if:

Whole life insurance is not for you if:

If price is a huge factor for you, term life insurance might be more suitable. You can choose to convert the policy to whole life insurance later if your finances improve.

You can get tailored quotes based on your needs and budget by filling out our short online form.

Who should buy Universal Life Insurance

Universal life insurance is suitable for people looking for life insurance and investment growth. These individuals include high-income earners who need tax-sheltered investment options. Business owners and persons needing estate planning solutions can also benefit from universal life insurance.

Individuals who only seek basic and cheaper life insurance should stay away from permanent life insurance. It is also not suitable for persons who don’t want an investment component with their life insurance coverage.

How to calculate Life Insurance needs

Finance experts generally advise buying life insurance coverage that is 7 to 10 times your annual income.

If you are earning $50,000 a year, you will need at least $500,000 in insurance coverage to adequately provide for your loved ones.

You will also need to consider your financial obligations – mortgage, car loan, business loan, credit cards – when calculating the cost. Many people also include final expenses (funeral/burial) to ensure their loved ones don’t need to worry about the cost.

You can also multiply your income by 10 ($50,000 x 10) and add a cushion to cover unexpected expenses.

You can use online insurance calculators or get free quotes for personalized estimates using our short online form.

Compare whole life insurance quotes today to save time and start your financial protection.

Who qualifies for Permanent Life Insurance coverage?

Insurability refers to a person’s eligibility for life insurance coverage. To qualify for permanent life insurance, you will need to pass the insurer’s criteria. The factors used for assessment include age, health status, and lifestyle. These factors are also used to calculate the cost of premiums.

You could qualify for coverage if:

You are 18 and over but not above 75 to 85, depending on the insurer;
In relatively good health with no serious pre-existing conditions;
Don’t engage in high-risk activities such as extreme sports or dangerous occupations;
Have no history of medical conditions such as stroke, cancer, or heart disease;
You are capable of making regular premium payments for your policy.

Insurance companies generally require a medical exam to qualify for coverage. While some insurers offer no-medical exam insurance, the premiums are significantly higher and the coverage amounts available are limited.

What are your options If You Have Health Issues?

If you have health issues, there is a chance the insurer may deny coverage or charge very high premiums to cover the risks.

If you don’t want to submit to a medical exam due to health issues, your options include:

Guaranteed Issue Whole Life Insurance: No medical exam required but has lower amount of coverage and higher premiums.

Simplified Issue Whole Life Insurance – No medical exam, but a short health questionnaire is required. This is less expensive than guaranteed issue whole life insurance.

How to get Permanent Life Insurance in Ontario

Getting permanent life insurance is a straightforward process. However, it requires careful thought and planning to maximize your financial protection.

The process begins by determining your coverage needs. You will need to answer these questions:

How much coverage do I need? ($100,000 – $1,000,000)
Do I want a basic policy or a participating policy that builds cash value?
Do I need additional riders? (critical illness, disability)
Can I manage investments for increased cash value growth?

The next step is to compare Insurers because not all policies are the same. Each insurance company will have eligibility criteria, insurance rates, and terms and conditions. Compare insurance providers based on:

Premium costs – Insurers offer different rates based on set criteria including age, health, and lifestyle.
Flexibility – Are you allowed to adjust the amount of coverage, cancel coverage, or convert your policy?
Cash value growth – Some types of policies have higher savings components.
Dividends – If you choose a participating policy, check their dividend history.

A good way to compare insurance providers is to go through an insurance broker or use an online comparison tool to compare multiple insurers all in one go.

After you have filled out an application for coverage, the insurer will review your details such as medical exam/history, smoking status/lifestyle, work, and other factors. Once their assessment is completed, your coverage will start with your premiums.

Cashing out, withdrawals, & surrendering your policy

One of the best features of permanent life insurance is cash value. If you ever need extra funds for an emergency, your policy can be your last resort.

Withdrawing money from the policy is known as partial cash surrender. The amount you withdraw will be deducted from the death benefits.

If you surrender a whole life insurance policy, you can receive the accumulated cash value. This, however, cancels your coverage and death benefits will no longer be paid to your named beneficiaries if you die.

Note that you can always borrow against the cash value of the policy. You will need to repay the amount borrowed but at least, your policy will remain active and in force.

Start comparing whole life insurance & permanent life insurance quotes

The old way of buying life insurance is talking to several insurance agents to find the best coverage and price.

Today, modern technology has made it much easier and faster to find the right life insurance policy. You can do it in under 2 minutes, using 1 short online form, at no cost or obligation.

Compare Insurances Online have dozens of partner insurance brokers in your area who can shop for the lowest premiums on your behalf. Brokers have their own network of insurers and have access to the lowest premiums in the market.

Just fill out our short online form today to receive competitive quotes from our reputable insurance partners. Save time and money to get permanent life insurance coverage for your family’s protection today.

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