Permanent Life Insurance

Safeguard What You've Earned

Once you've grown your assets, how do you protect them from the unexpected? Begin by looking at what your needs are today and then try to estimate what they will be down the road. Life insurance can provide an effective safety net to protect against financial loss arising from your death somewhere along that path.

Life insurance comes in two types: Permanent and term. Permanent insurance can supply you with protection for your entire life or to a specified age while term insurance is used to meet immediate expenses like short-term debt obligations. Depending on the policy, permanent insurance can pay a death benefit, accumulate value within the policy and potentially offer tax advantages.

Benefit From Coverage For Life

Permanent insurance policies can be flexible, allowing you to choose the amount of insurance coverage and investment options to meet your goals. Benefits of permanent insurance can include:

  • Flexible coverage options
  • Diverse options for investment portion
  • Tax-advantaged investment growth
  • Estate planning uses and creditor protection

Insurance Tailored To You

The three most common types of permanent insurance include:

  • Term-To-100 
    Offers permanent insurance protection with coverage in place for either the life of the insured or until age 100.
  • Universal Life 
    Provides increased flexibility to build up additional savings or insurance coverage as required. The savings options include a broad range of investment alternatives.
  • Whole-Life Insurance 
    Gives insurance protection for your whole life, while potentially allowing for the accumulation of cash value in the policy.

Get In Touch

Ready to learn more about the options available to you through permanent insurance? Contact your CIBC Wood Gundy Investment Advisor, who can introduce you to a qualified Estate Planning Specialist (Financial Security Advisor in Quebec). To find out how we can help you, use our Find An AdvisorOpens a new window in your browser. tool to locate a CIBC Wood Gundy Investment Advisor near you.

Insurance proceeds are very flexible and can be used to meet the needs of many various financial obligations and tax planning strategies. Permanent insurance is designed to last throughout your life to provide for long-term needs.

Permanent insurance can remain in force until you die. When you pass away, the amount of your coverage, also called the sum insured, is paid to your named beneficiaries.

Permanent insurance is available on either a first-to-die or second-to-die basis. The factor to consider when making your selection of which option is best for you and your family is, simply, when will the money be needed?

If cash is going to be required immediately after the first death, then a first-to-die policy is appropriate. One example of a need that requires a first-to-die policy is business insurance for business partners. At the death of the first partner, the policy proceeds are paid to the surviving partner, who would use the money to buy-out the portion of the business from his or her deceased partner's family.

However, if the insurance proceeds are only required at the second death, then a second-to-die policy would be appropriate. Examples of needs that would require a second-to-die strategy include planning for payment of tax liabilities, which would be triggered at the death of the second spouse. Assets to consider include Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs) as well as your stock portfolio, possibly some business interests, and real estate.

Once it has been established that the need for insurance is permanent, there are a variety of plans available. Generally, the three popular forms of permanent insurance are: term to 100, Universal Life and Whole Life.

Depending on the kind of permanent insurance that you choose, you may also be able to build additional cash values in a tax-sheltered manner. Some policies allow you to increase your insurance premiums and will maintain the excess in an investment environment. Each form of permanent insurance allows for a range of options. Generally, the cash values provide your insurance plan increased flexibility to build up additional savings or insurance coverage as required.

A thorough assessment of your current and long-term goals will assist you in the selection of features and options that best meet your needs. Insurance solutions form an integral role in most financial plans. A life licensed Investment Advisor will work with you to determine which insurance options are right for you.

Use our Find An AdvisorOpens a new window in your browser. tool to locate a CIBC Wood Gundy Investment Advisor near you and take the first step to achieving the financial future you want.