Permanent Insurance Policies never expire.
Permanent Insurance policies accumulate cash value, which can be used to help defray premiums, help save for retirement, be borrowed against or used to meet other investment objectives.
These policies are a reliable tool for business succession planning and for long-term estate planning.
Scenario
John and Mary own a successful medium sized business worth several million dollars. John and Mary have retired and now like to spend most of their time traveling and have left the day-to-day running of their business operations in the care of their 3 sons. Tragically John and Mary are killed in an automobile accident. At their death disposition occurs (Revenue Canada looks at almost all of John and Mary’s assets and tax them as though they earned them all in that year). As a result the tax bill on their estate runs into the millions, particularly because of the value of their business. Thankfully John and Mary took great care to plan their affairs and many years earlier purchased permanent insurance policies that help their sons defray the enormous tax bill assessed. As a result the business continues to run unencumbered.