Insurance that protects beneficiaries and maximizes wealth
In the wide array of available life insurance policies, a whole life insurance policy gives the policyholder a unique opportunity to both safeguard beneficiaries’ financial security and a sound and secure way to maximize wealth during his or her lifetime.
In a sense, a whole life insurance policy can be viewed as both an insurance policy with a guaranteed payout to beneficiaries at the time of the policyholder’s death and a means of investment with possible tax-saving advantages.
Unlike term insurance, a whole life insurance policy lasts the lifetime of the policyholder, instead of only for a specified amount of time.
And this type of policy has that dual advantage: life insurance with a guaranteed payout and an option allowing the policyholder to accumulate wealth and possibility defer taxes.
A whole life insurance policy has other benefits as well. While there are restrictions in place, the policy works somewhat like savings, allowing the policyholder to access funds. The policyholder may choose to use the policy’s cash value as a security for a loan or to complement and optimize retirement plans and income, and estate planning.
While the beneficiary will receive a guaranteed amount upon the policyholder’s death, there are also flexible options that allow access to funds prior to that.
A whole life insurance plan includes compassionate assistance, a complementary benefit — a tax–free collateral loan — allowing the policyholder to access a portion of the death benefit. This can be triggered if the policyholder is diagnosed with a terminal illness or injury and funds are needed to pay for expenses prior to the policyholder’s passing.
If needed, there is also an option for premium offset where the policyholder can use the policy’s cash value to pay for premiums.
When choosing how to access the best whole life insurance in Canada, speak with a CHES Life adviser about why this type of policy is right for you — a way to give your loved ones a guaranteed payout at the time of your death and a prudent option to maximize wealth during your lifetime.