Last updated: July 22, 2022

What is permanent life insurance?

Permanent life insurance is a life insurance policy that gives you lifelong coverage, which never expires. There are three types of permanent life insurance policies: whole life insurance, universal life insurance and participating life insurance. All of these permanent policies come with a death benefit – this refers to the tax-free payment your beneficiaries Beneficiaries are the people or person you want to financially protect. You can name your family or anyone you want as your beneficiaries. will get after you die. 

What are the benefits of permanent life insurance? 

There are several perks to having a permanent life insurance plan, such as: 

Tax-free death benefit

  • Your beneficiaries get the money from the death benefit. They can use this money in any way they want. For example, they can use it to cover the cost of debts, mortgage or rent, child care, living essentials and any other expenses. 

Lifelong coverage

  • You’ll get insurance that never expires. Some insurance plans, like term life insurance, offer coverage for a select number of years. But permanent life insurance plans have you covered all throughout your life. So there’s no need to ever renew your policy or worry about it expiring. 

Cash value

  • You have a chance to grow your money with cash value. Some permanent life insurance plans also come with a savings portion called cash value, which can help you earn interest that’s tax-preferred (*“Tax-preferred” means you won’t have to pay tax on any interest earned unless you start withdrawing funds.) and grow your money over time. You can borrow from your cash value as a loan or withdraw funds from it. Please note that withdrawing from your cash value may reduce your policy’s death benefit.

Premiums that won’t change

  • Your premiums (monthly or annual fees) won’t rise over time. Most permanent insurance costs typically don’t increase from the time you first buy the policy. And some permanent insurance plans let you pay for a limited time and then never again. 

Our permanent life insurance products

There are three types of permanent life insurance plans: whole life insurance, universal life insurance and participating life insurance. 

Whole life insurance 

You’ll get a policy with a tax-free death benefit. Some policies give you the chance to grow cash value. 

Our products: 

Sun Life Go Guaranteed Life Insurance

SunSpectrum Permanent Life II

Universal life insurance 

You’ll get a policy with a tax-free death benefit and the option to grow your savings on a tax-preferred basis.  

Our products: 

SunSpectrum Universal Life II

SunUniversalLife II

Participating life insurance

You’ll get a policy with a tax-free death benefit. You’ll also have the chance to grow cash value and dividends. Your policy has an opportunity to receive dividends, but please note that dividends are not guaranteed.

Our products: 

Sun Par Protector II

Sun Par Accumulator II

Sun Par Accelerator

How to buy permanent life insurance

 

Get advice

Not sure what type of insurance you need? A Sun Life advisor can help you figure it out and get you a customized quote.

Buy online

Looking for coverage up to $25,000? Then check out Sun Life Go Guaranteed Life Insurance. It’s a permanent life insurance plan you can get without any medical details needed. You won’t need to answer any health questions or take any medical exams. You’re guaranteed to qualify regardless of your current health condition.

Get a quote online 

Frequently Asked Questions

Can I get a quote online for permanent life insurance?

You can get a quote online for one of our permanent life insurance products: Sun Life Go Guaranteed Life Insurance. This plan offers up to $25,000 in coverage. Get a permanent life insurance quote. 

If you’re interested in a life insurance policy that provides more than $25,000 in coverage, you can connect with an advisor to get a quote and apply. 

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How does permanent life insurance work in Canada?

Permanent life insurance gives you coverage all throughout your life. Your beneficiaries will get a payment after you die. Some of our permanent life insurance policies can also help you build up a cash value. 

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How old do I have to be to apply for permanent life insurance in Canada?

Canadians and those living in Canada can apply for permanent life insurance starting at age 18. Anyone under age 18 can still be named as an “insured person” under a policy. But the policyowner must be a legal adult. For example, a parent can buy a policy for their children. For more detailed information, connect with an advisor.  

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What’s the difference between permanent and term life insurance?

The main difference between permanent life insurance and term life insurance is that permanent life insurance offers lifelong insurance coverage whereas term only covers you for a specific number of years (e.g. 10, 15 or 20 years). 

Both term and permanent life insurance will give your beneficiaries a payment after you die. But with a term policy, your beneficiaries won’t receive any money if you die after your term expires. Also, with a term policy your premiums may increase if you want to renew your term. With most permanent life insurance, however, your premiums are guaranteed to remain the same all throughout your life, regardless of any changes to your health.

Learn more about the differences between term and permanent life insurance.

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How does cash value work in a permanent life insurance policy?

Cash value is a savings portion within your policy that earns interest. You can borrow from it or withdraw from it. But please be mindful of what can happen if you withdraw from your cash value.

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Can you cash out a permanent life insurance policy before you die? 

You can withdraw your cash value, but this may reduce your policy’s death benefit – which means there will be less money for your beneficiaries after you die. There can also be tax consequences if you access your policy’s cash value. For more detailed information, connect with an advisor.

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How long does a permanent life insurance policy last?

A permanent life insurance policy doesn’t expire and will last your entire life. That’s provided you pay the premiums on time.

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How long do you have to pay for permanent life insurance? 

It depends on the type of permanent life insurance policy you get. A permanent life insurance policy is designed to last your entire life, from the time you buy it until you die or stop making payments. Some permanent policies give you the option to pay for life (age 100). And other permanent insurance policies only require you to pay premiums for a specific amount of time. Connect with an advisor to get more detailed information.

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Will my premiums remain the same as I age if I get permanent life insurance?

With most types of permanent life insurance, your premiums are guaranteed to remain the same throughout your life.   

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Will I have to answer questions about my health when I apply for permanent life insurance? 

Most of our permanent life insurance plans require you to answer health questions and provide medical information. The only exception is if you’re applying online for Sun Life Go Guaranteed Life Insurance, which is no medical life insurance – this means you won’t have to answer any health questions. Please note that this product only offers coverage up to $25,000. If you’re interested in more coverage, you can connect with an advisor to get a quote and apply.

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Will I have to go through underwriting when I apply for permanent life insurance?

Most of our permanent life insurance plans require you to go through insurance underwriting. The only exception is if you’re applying online for Sun Life Go Guaranteed Life Insurance. There’s no underwriting or medical questions asked when applying for this product.   

Underwriting is the process of assessing the risk you present when you apply for insurance. This risk assessment can affect how much coverage you may get and how much your premiums will cost. Learn more about insurance underwriting and how it works.

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Where can I learn more about permanent life insurance? 

Here’s where you can find more detailed information about our permanent life insurance policies:

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Get advice

Not sure what type of insurance you need? A Sun Life advisor can help you figure it out and get you a customized quote.