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3 Little-Known Benefits of Permanent Life Insurance

Written by Shelter Bay

3 Little-Known Benefits of Permanent Life Insurance3 Little-Known Benefits of Permanent Life Insurance

Permanent life insurance is a fascinating financial tool, but it is also puzzling; this is why people have a love/hate relationship with it. Individuals, who love it, totally love it; those who hate it want to get rid of it, and those in the middle can’t figure out what the big deal is.

However, it continues to rise in popularity so there must be benefits to permanent life insurance that those who love it understand.

Although there are different types of permanent insurance policies, they can be broken down into two categories – whole life and universal life. Below, we are going to look at three little-known facts about these types of life insurance policies, so you can better understand how to take advantage of their benefits.

3 Unknown Facts About Permanent Life Insurance

  1. Corporate Benefits of Participating (PAR) Whole Life 

    Policyholders benefit from the mortality factors that enhance the long term benefit of this permanent life insurance option. We are living longer but the mortality rates are dated, thus the payments compensate for longer lives compared to what was originally predicted. Individuals live longer than expected and this is reflected in the dividend.

  2. Whole Life Insurance is a Unique Piece of Property

    This type of policy is an amazing investment and it’s value increases regardless of market stability – it has long-term returns and stable values. This is why it can be a very important part of a balanced portfolio because:

  • It’s not possible to outlive a whole life insurance policy, thus the protection exists no matter what happens. So as long as policyholders keep up with their premium payments, they have this protection.
  • Once the policy is created, it can eventually pay for itself if the policyholder can’t make a payment or forgets to. This also equates to growing cash value in the investment component.
  • The value of a whole life insurance policy is guaranteed and predictable.

3. Children get the Most Value from Permanent Life Insurance

Because of their age, children have years to benefit from the long-term advantages that permanent life insurance products offer. As well, it gives them a financial took they can use to get them through significant events in their life.

In the beginning, the stability and long-term accumulating power via the paid-up additions dividend option creates a financial asset for the parents, and later the children, when the policy can be transferred to them as young adults.

Later, the child can use the accumulated cash for various needs such as:

  • An education fund
  • To start a new business
  • A down payment for a house
  • Pay off their debts after a divorce
  • To fund their retirement

Permanent life insurance is an amazing product with many benefits. Whether you love it, hate it, or you’re sitting on the fence, there’s always more to learn about it.

To find out more ways it can benefit your family, please send us an email or call us directly at 1.888.498.5288.

 

Shelter Bay Financial Corp
Shelter Bay Financial Corp

Life & Health Insurance brokers working for Canadians

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