Whole Life & Permanent Insurance
Lifetime Coverage with Investment Options
Permanent insurance which includes both whole life and universal life products provides lifelong coverage, ensuring that your loved ones are protected no matter what the future holds. It can also build cash value over time while offering expanded financial options that you may be able to access during your lifetime.
What’s the Difference Between Whole Life and Universal Life?
Both whole life and universal life offer lifetime coverage and the opportunity for tax-free cash growth, but they’re structured differently.
Whole Life
It’s lifelong coverage that pays a tax-free payment to your beneficiaries when you die. Your policy is guaranteed to grow in cash value as long as you pay your premiums.
Your payments are pooled in a separate account called the participating account with all other policyowners. The funds are professionally managed and may provide you with a dividend.
- You or your corporation pay the premiums and your policy’s cash value grows tax-free, within limits
- That money is used to pay for expenses, taxes, and insurance claims
- You may receive dividends based on the participating account’s performance
- You can take your dividend as cash, buy more insurance or pay for your existing coverage
- Your beneficiaries receive a tax-free payment when you die
Universal Life
One of the most flexible and affordable products available that covers you for life. There are two parts to a universal life insurance policy: insurance and investment components.
You choose your investments and growth can accumulate tax-free, within limits set by the government. You can withdraw or borrow from your policy, with certain tax implications.
- You pay a premium for your insurance coverage.
- After you’ve covered the insurance costs, the rest of the money goes to the policy’s investment component
- The money is invested in a variety of investment options, such as stocks, bonds, and mutual funds. The performance of the cash value is dependent on the performance of the underlying investments.
- You can access the money in your account as long as there’s enough left to cover the insurance costs.
- Your beneficiaries receive a tax-free payment when you die
CDSPI offers a variety of Life Insurance plans for dentists and their immediate family members.
Speak with an Advisor
The advisors from CDSPI Advisory Services Inc. draw on a broad range of policies from leading Canadian insurance companies to find best-in-class products that are right for you, your family and your practice.
This information is for general information purposes only and does not constitute advice. Please consult with a qualified professional for advice tailored to your specific needs. While we strive to provide accurate and current information, we make no guarantees regarding its completeness or applicability.