canada benefits living & life insurance plan inc

Permanent life insurance is a type of term life insurance with a death benefit. However, permanent life insurance also offers the opportunity to accumulate cash value tax-deferred, which is what a term policy does.

Permanent life insurance policies offer the possibility of accelerated death benefits, just like term life insurance.

Policy surrender. You cancel your permanent-life policy to receive the cash value section as a lump amount. The insurer will pay you the amount, less any outstanding debts and unpaid premiums.

Life insurance policies may offer living benefits without extra charges. Term life policies usually include a terminal illness rider for no additional charge. Ask your agent whether there are charges for critical illness, chronic illness, or other riders.

It covers qualified critical illnesses with high medical expenses and a reduced life expectancy, like stroke, heart attack, and kidney failure.

Policy loan. A policy loan is a loan that you take out against your permanent life insurance policy. You'll pay interest, which is often lower than other lenders' charges. You won't need to pass a credit check or adhere to a long list of restrictions.

If you cannot perform at least two of the six Activities of Daily Living (ADL), it will allow you access to your benefits.

However, you might be able to add a life-support rider to your benefits package later. You may also have to wait for your living benefits to be available. If eligible, you can file a claim once the waiting period ends and get your help.

Policy loan. Although you will be charged interest for a loan against your permanent insurance policy, the rate is typically lower than that of other lenders. A credit check and compliance with a lengthy list of restrictions are not required.