Permanent life insurance
As the name suggests, permanent life insurance can protect you and your family throughout your lifetime. It provides a death benefit and usually builds a cash value.
The cash value accumulates within the policy on a tax-advantaged basis. If you need to, you can withdraw cash or borrow against its value.
Participating life insurance
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, Canada Life's professional investment managers manage the assets backing the cash value and death benefit.
Participating life insurance gives you a foundation of guaranteed values and tax-advantages growth, plus the opportunity to receive policyowner dividends. You can decide how you want to use your dividends. Some popular options are:
- Use your dividends to buy more permanent life insurance. This can help offset inflation and provide higher long-term growth in your cash values and death benefit.
- Use your dividends to buy a combination of term and permanent life insurance. This can help you buy more coverage today at an affordable price.
