Last updated : July 31, 2023

What is permanent life insurance?

Permanent life insurance is a type of life insurance policy that provides you with lifelong coverage to protect your loved ones. This coverage never expires, no matter your age or if your health changes. Permanent life insurance provides a death benefit, which is a tax-free payment your beneficiaries will get after you die.

What are the different types of permanent life insurance?

There are 3 types of permanent life insurance plans: whole life insurance, universal life insurance and participating life insurance.

Each plan comes with unique features to meet your specific needs. Here they are at a glance:

Whole life insurance

  • Lifelong coverage
  • Tax-free death benefit
  • Chance to grow cash value
     

Universal life insurance

  • Lifelong coverage
  • Tax-free death benefit
  • Chance to grow cash value
  • Option to grow savings on a tax-preferred basis
  • Choice of investment account options

Learn about universal life insurance

Participating life insurance

  • Lifelong coverage
  • Tax-free death benefit
  • Chance to grow cash value
  • Option to grow savings on a tax-preferred basis
  • Opportunity to earn policy dividends

Learn about participating life insurance

Why choose permanent life insurance?

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

Cash value

Some permanent life insurance plans also come with a savings portion called cash value, which can grow tax-preferred "Tax-preferred” means you won’t have to pay tax on any interest earned unless you withdraw funds or take certain types of policy loans. over time. You can borrow or withdraw funds from your cash value. Please note this will reduce your policy’s death benefit.

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.

Tax-free death benefit

Your beneficiaries get the money from the death benefit to use in any way they want.

Premiums that won’t change

Typically, permanent insurance premiums Premiums are your monthly or annual payments. don’t increase from the time you first buy the policy. And some permanent insurance plans guarantee that you’ll pay premiums for a limited time, then never again.

How to get permanent life insurance

Get advice

Not sure what type of insurance you need?

A Sun Life advisor can help you figure it out and can provide you with a customized quote.

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Buy Permanent life insurance 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 having to provide any medical details. You won’t need to answer any health questions or take any medical exams and are guaranteed to qualify regardless of your current health condition.

Frequently Asked Questions

How does permanent life insurance work in Canada?

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

Can I get a quote online for permanent life insurance?

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

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.

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

Canadian residents can apply for permanent life insurance starting at age 16 (unless you live in Quebec). Anyone under age 18 can still be named as an “insured person” under a policy. But the policy owner must be a legal adult. For example, a parent can buy a policy for their children. For more detailed information, connect with an advisor.

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

The main difference is that permanent life insurance offers lifelong insurance coverage whereas term insurance covers you for a specific number of years (e.g., 10, 15, 20, or 30 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.

Learn more about the differences between term and permanent life insurance

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 or withdraw from it. But there may be tax implications if you withdraw or borrow from your cash value.

When can you take cash out of a permanent life insurance policy?

You have two options to take cash out of your permanent life insurance policy:

  1. You can cancel your policy and receive any cash value at any time. However, your life insurance coverage will end, and some or all of the money you receive may be subject to tax.
  2. You can also withdraw part of your cash value at any time, but this may reduce your policy’s death benefit. This 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.

Connect with an advisor for more information

Does permanent life insurance expire?

No, a permanent life insurance policy doesn’t expire and will last your entire life.

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

It depends on the type of permanent life insurance policy you get. Some permanent policies give you the option to pay for life (age 100). And other permanent insurance policies require you to pay premiums only for a specific amount of time.

Will my premiums remain the same as I age?

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

Connect with an advisor for more information

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 a 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.

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.

Learn more about insurance underwriting and how it works

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.