Whole life insurance is an attractive option for many people because it offers both protection and a potential source of income. Whole life insurance in Canada is a type of life insurance policy that provides coverage for an individual’s entire life, rather than a set period of time or a certain number of years.
Here are some of the benefits of whole life insurance:
1. Death Benefits: In the event of the policyholder’s death, the insurance company will pay out a predetermined amount of money to the policyholder’s beneficiaries. This money can be used to cover funeral expenses, debts, and other final expenses.
2. Cash Value: A whole life insurance policy accumulates cash value over time. This cash value can be used by the policyholder in times of financial need or can be borrowed against to pay for large purchases.
3. Retirement Planning: Whole life insurance policies can be used to supplement retirement savings. Policyholders can use the cash value from the policy to pay for living expenses in retirement.
4. Tax Benefits: Whole life insurance policies offer tax benefits for policyholders. Any money that is paid into the policy is typically tax-deferred, meaning that policyholders can avoid paying income tax on their contributions.
5. Flexibility: Whole life insurance policies can be customized to fit the needs of the policyholder. For example, policyholders can choose to pay more in premiums in order to increase their death benefit or to increase their cash value.
