Permanent Insurance

]: If an individual wants, or needs, peace of mind for the entirety of their lives then a permanent policy is the perfect solution. Unlike term insurance, a permanent policy sticks with you. 

Simply put, permanent insurance has a cash value component to it which can be used as collateral for a loan from a financial institution. You can then use that money as retirement income and at the time of death, the loan will be repaid using the funds from your death benefit.

Every year that your policy receives a dividend, it will buy additional paid-up insurance. Once you own that new insurance, the policy can’t go back down in cash value. So fast-forwarding to retirement, let’s say we have a year where the stock market is down, either by crashing or just having a low year, and your RRSP or other investments are negatively impacted: this could be the year you choose to take a loan for income using your life insurance policy as collateral (with no need to pay back the loan as the life insurance will do that in the future). 

While the rest of your investments have gone down, your life insurance cash value is still worth the same amount. Currently, the projected policy dividend rate ranges from 5-6% a year depending on which insurance company you place your policy with.

Yes!  The younger that you are, the easier it is to get life insurance since you are less likely to have health issues than someone who is more mature in age. Because of this assumption, an underwriter sees less risk for a younger and healthier person making it easier to obtain a policy.