Term vs. permanent life insurance
Canada Life - May 22, 2021
You have two basic choices with life insurance: term and permanent. Both options will help protect you and your family but have different features
When it comes to buying life insurance, it’s important to know your options. You’ll want to understand how long your insurance will last, how much it will cost and what it will cover.
You have two basic choices with life insurance: term and permanent. Both options will help protect you and your family but have different features.
With term life insurance, you’re covered for the length of time that you choose. The cost is lower than permanent life insurance to start but typically increases when you renew it because the cost of insurance increases as you age.
On the other hand, permanent life insurance (also known as whole life insurance) costs more but helps give you security and often has additional features. It lasts a lifetime and the cash value may grow over time with tax advantages.
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1. Any additional payouts are subject to tax limits
2. If you borrow against or withdraw from your policy, it may reduce how much money the person (or people) you’ve designated will receive (called a death benefit). You may also have to pay taxes on all or part of the amount withdrawn from or borrowed against your policy.