Permanent Life Insurance
Permanent life insurance protects you for your lifetime. It can build a cash surrender value that is paid to the policyowner if he or she cancels the policy or withdraws some funds from the policy and also provides a death benefit. Life insurance proceeds bypass probate and estate taxes if they’re made payable to a named beneficiary and not to your estate (except in Quebec).
Participating life insurance, also called whole life insurance, provides permanent life insurance with a tax-advantaged cash value component. In addition, these policies have the potential for earning policyowner dividends. Participating life insurance doesn’t require hands-on management by the policyowner. Instead, London Life’s professional investment managers manage the assets backing the cash value and death benefit.
Universal life insurance provides a traditional life insurance component with a tax-advantaged investment component. You select an investment mix that is as individual as you are—taking into account the amount of investment risk you’re comfortable with and your financial goals and circumstances. This type of policy is attractive for people who want to actively manage their life insurance policy.
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