logo-small

Green field:(noun) of economic origin; Meaning a project which lacks any
constraints imposed by prior work

top banner

Life Insurance

First Aid kit and FolderHaving the right life insurance protection can make a big difference in your life and the lives of those close to you. A proper plan that includes life insurance can mean the difference between leaving your estate financially secure and leaving behind debts and an inadequate income.

Types of Insurance

Term Life Insurance

Term life insurance provides the most coverage for the lowest initial cost.

Permanent Life Insurance

Permanent life insurance protects you for your lifetime by building savings that you can draw on later and providing a death benefit.

  • Participating Life Insurance

    Participating life insurance—also called whole life insurance—policies provide permanent life insurance protection with a tax-advantaged investment component. In addition, there is potential for earning policyowner dividends. Participating insurance doesn’t require hands-on management by the policyowner. Instead, the insurance company manages the assets backing the cash value and the death benefit.

  • Universal Life Insurance 

    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 your financial goals and circumstances and the amount of investment risk you’re comfortable with. This type of policy is attractive for people who want to actively manage their life insurance policy.

Term Life Insurance

Term life insurance is well-suited to meeting large, short-term protection needs for the lowest initial cost. For example, a couple with young children and/or a mortgage might select term life insurance as an affordable way to obtain the full coverage they need today.

Term life insurance policies do a good job of meeting immediate needs and are renewable after five, 10 or 20 years without providing proof of health. The price will increase so that it’s appropriate for your age at renewal, and the increase in premium can become substantial in later years. Coverage ceases for the majority of term contracts once you reach the age of 75 or 80.

Term life insurance provides the option to later move, or convert to a permanent life insurance policy without providing proof of health. However, this ability to convert to permanent life insurance often expires around age 65 or 70. When purchasing term life insurance, you need to understand your conversion options.

Permanent Life Insurance

Permanent life insurance protects you for your lifetime. It can build cash surrender values and provide a death benefit. Life insurance proceeds bypass probate and estate taxes if made payable to a named beneficiary and not the estate (this applies outside Quebec). If the permanent policy has a cash surrender value, you should review the product guide related to your policy. The guide will help you better understand how the assets backing the policy are managed and how these assets are used to accumulate value within the policy.

How Participating Life Insurance Works

Participating life insurance —also called whole life insurance—combines lifetime insurance protection with a tax-advantaged investment component.

    You can use participating life insurance to:
  • Pay final expenses and any debts you may have
  • Ensure your family has the resources to maintain a comfortable standard of living
  • Pay any taxes owing on your estate so more of your estate is transferred to your children or grandchildren
  • Leave a legacy in your community or with your favourite charity
  • Provide your business with the money necessary to fund a buy-sell agreement
  • Protect your business against the loss of a key employee
    During your lifetime, it can:
  • Build tax-advantaged savings that you can draw upon as needed for personal or business opportunities; any cash values withdrawn from the policy may be subject to tax
  • Supplement your retirement income
  • Provide funds for long-term care or home care

Investment performance built for the long term

Participating insurance is a permanent life insurance product. But the investment performance of the par account is an important component in determining the long-term value of your policy.

When you purchase participating life insurance, the premiums you pay are credited to an account called the participating account with funds from other participating policies. Participating policies are built on a foundation of guaranteed values (i.e. basic premium, basic insurance coverage, guaranteed portion of cash values and guaranteed portion of reduced paid-up values) that are determined using long-term assumptions for factors such as investment returns, mortality, expenses, lapses and taxes.

If the actual results in the participating account are collectively more favourable than the assumptions supporting the guaranteed values, earnings are generated in the participating account that become part of the participating account surplus (retained earnings). Each year, the company distributes a portion of the earnings as approved by the Board of Directors. Surplus is held in the participating account to maintain the strength and stability of the participating account into the future.

A team of professional investment managers invest the assets in the participating account. Assets held in the account include: publicly traded government and corporate bonds, residential and commercial mortgages, corporate lending, real estate, equity-related investments, short-term investments and policy loans.

Universal Life Insurance

Universal life insurance is permanent life insurance protection with a tax-advantaged investment component. Universal life insurance can help you meet financial responsibilities and opportunities that can develop during your lifetime.

Universal life combines traditional life insurance and a tax-advantaged investment component, consisting of a diversified range of interest options. You select the interest options that match your financial security goals and your risk tolerance. We can help you tailor your life insurance coverage to fit your lifestyle, budget and investment objectives.

  • Pay final expenses and any debts you may have
  • Help provide your family with the resources to maintain a comfortable standard of living
  • Pay any taxes owing on your estate so more of your estate is transferred to your children or grandchildren
  • Leave a legacy in your community or to your favourite charity
  • Provide your business with the money necessary to fund a buy-sell agreement
  • Protect your business against the loss of a key employee
    During your lifetime, it can:
  • Build tax-advantaged cash value which you can draw upon as needed for personal or business opportunities
  • Supplement your retirement income
  • Provide funds for long-term care or home care

A universal life policy combines permanent life insurance protection with the opportunity to accumulate tax-advantaged cash value. In fact, it may be the only insurance plan you’ll ever need.

Within limits set out in the contract, you can decide how much or how little you want to pay into the policy. As cash value accumulates, you can withdraw cash from your policy or borrow against it. You can also use the cash value to pay part or all of the cost of your insurance. Any cash value withdrawn from the policy may be subject to tax.

 

You are here: Home Life Insurance