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Permanent Life Insurance policies include insurance and savings in a single tax-advantaged plan.
With Permanent life insurance you have the ability to change your coverage, deposits and often your investment choices in response to your changing needs, conditions, or circumstances.
The two most common types of Permanent Life Insurance are Whole Life and Universal Life.
Whole Life is the type of insurance where the insurance protection and the savings component are bundled together and the savings component is managed by the insurance company. A hands off approach.
Universal Life on the other hand is an unbundled plan. Deposits are applied to the policy as they are paid each month or year. The insurance company deducts the insurance administrative costs from the deposits. The balance of the deposit is then applied to the saving account which is made up of a selection of investment options within the policy that you can manage.
With the savings component to a Permanent insurance plan, one can develop significant cash values which the owner of the policy may use through surrender, policy loans or leveraging. The excess deposits and cash value accumulates in the policy on a tax-deferred basis. Provided your policy value does not exceed an amount prescribed under the income tax act.
Contact our office if you need more information about Permanent Life Insurance.
This publication and website are intended for Ontario residents only and the information contained is subject to change without notice. Mutual Funds are offered and regulated through Global Maxfin Investments Inc. (GMII). Insurance products (including Segregated Funds) and Income Tax Planning is provided under the name of Ausim Mobeen. GMII does not supervise these activities and will not be accountable, responsible or liable for such activities. This publication contains opinions of the writer and may not reflect opinions of GMII. The information contained herein was obtained from sources believed to reliable, but no representation, or warranty, express or implied, is made by the writer or GMII or any other person as to its accuracy, completeness or correctness. This publication is not an offer to sell or a solicitation of an offer to buy any of the securities. The securities discussed in this publication may not be eligible for sale in some jurisdictions. If you are not a Canadian resident, this report should not have been delivered to you. This publication is not meant to provide legal or account advice. As each situation is different you should consult your own professional advisors for advice based on your specific circumstances.
