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Whole Life Insurance

Whole Life Insurance is a permanent form of life insurance that will provide a lifetime of protection with a level premium. Depending on the policy that you purchase, a whole life insurance policy can also act as a tax-efficient investment with strong cash values. Whole Life Insurance spreads the cost of your coverage over the lifetime of the policy, which keeps premiums lower than they would otherwise be. Additionally, there is an option to purchase certain Whole Life policies over the course of 10 or 20 years and spend the rest of your life protected.

Whole Life Insurance Magnifying glass

Tax-Advantaged Investing Using Whole Life Insurance

One of the major features of both Whole Life and Universal Life insurance policies is the idea of having an investment inside the policy that is efficient when it comes to taxes. Whole life insurance in particular can accumulate a so-called cash value on top of its normal cost of insurance. This cash value is an investment component that gains interest at a rate determined by long-term financial projections.

The advantages of using a whole life insurance policy as an investment are many. Whole life insurance offers a very stable long-term investment for Canadians. While it may not respond as quickly to short-term changes in the marketplace, whole-life insurance is very useful for meeting long-term financial goals because of its stable, guaranteed rate of return. The tax-advantaged aspect of a whole life insurance policy allows you to gain interest on funds you would normally be paying tax on. This allows you to grow your investments more efficiently.

Paying For Whole Life Insurance in 10 to 20 Years or Before Retirement

Basic Whole Life policies spread the payment for insurance over the estimated length of your life. This means that you'll be paying your premiums even while retired. But as was touched on previously, there are some options when it comes to paying out the entirety of your policy earlier, while you have greater earning potential. The most common options are 10 and 20 year plans, as well as paying until the age of 65. In all cases, these payment plans spread insurance payments out over a smaller amount of time. Ultimately, the shorter the length of time, the higher the premiums, but the positive aspect of this is being done paying for your insurance coverage earlier.

Whole Life Insurance is a very stable, tax-efficient investment tool, as well as an excellent permanent life insurance policy. Whole Life Insurance can fit cleanly into your financial plan, but for obvious reasons the issues of balancing your investments, maintaining a lifestyle and planning for the future are as complex as ever. Because of this, we highly recommend talking with a financial advisor before you buy into a whole life insurance policy, or do any major financial planning.

CanEquity Insurance has access to all Whole Life Insurance offerings in Canada. It is always best to discuss your options with a trained professional. We have representatives standing by to answer your questions. Contact us today.

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Mortgage Amortization Calculator
An amortization is the amount of time scheduled to completely pay off a loan, and the amortization length you choose is important in shaping how much you'll end up paying for your home. While the Government of Canada's national housing agency caps the amortization period for high-ratio mortgages at 25 years, and that is the most popular amortization length in Canada, amortizations can range anywhere from 5 to 30 years for uninsured mortgages. Try our easy to use mortgage calculator to see how changing the amortization length affects your loan payments.
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