{"id":32282,"date":"2025-11-25T10:00:00","date_gmt":"2025-11-25T15:00:00","guid":{"rendered":"https:\/\/www.rbcinsurance.com\/en-ca\/?p=32282"},"modified":"2026-02-03T15:19:43","modified_gmt":"2026-02-03T20:19:43","slug":"cash-value-life-insurance-how-it-works","status":"publish","type":"post","link":"https:\/\/www.rbcinsurance.com\/en-ca\/advice-learning\/life-insurance\/cash-value-life-insurance-how-it-works","title":{"rendered":"Cash Value Life Insurance: How It Works and When to Use It"},"content":{"rendered":"\n<div class=\"wp-block-rbc-template-selector templateSelector template__article articleSingle\" data-template=\"article\">\n<div class=\"wp-block-group articleSingle__container tabListStickyWrapper is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group articleSingle__container__hero is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group articleSingle__container__hero__inner is-layout-flow wp-block-group-is-layout-flow\">\n<span class=\"rbc-yoast-breadcrum-span\"><span><a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/\">Home<\/a><\/span><\/span>\n\n\n\n<div class=\"wp-block-group articleSingle__featuredImage__group is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group articleSingle__title__group is-layout-flow wp-block-group-is-layout-flow\"><h1 class=\"wp-block-post-title\">Cash Value Life Insurance: How It Works and When to Use It<\/h1>\n\n\n<div class=\"wp-block-group articleSingle__date__group is-layout-flow wp-block-group-is-layout-flow\"><div class=\"wp-block-post-date\"><time datetime=\"2025-11-25T10:00:00-05:00\">November 25, 2025<\/time><\/div>\n\n\n<span class=\"wp-block-rbc-html-element articleSingle__readTime\">11 Min Read<\/span>\n<\/div>\n\n\n\n<div class=\"wp-block-group articleSingle__author__group is-layout-flow wp-block-group-is-layout-flow\">\n<img decoding=\"async\" src=\"https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2021\/06\/Avatar.webp?quality=80&w=128\" alt=\"Brooke Smith\">\n\n\n\n<div class=\"wp-block-group articleSingle__author__details is-layout-flow wp-block-group-is-layout-flow\">\n<span class=\"wp-block-rbc-html-element articleSingle__author__name\">Brooke Smith<\/span>\n\n\n\n<span class=\"wp-block-rbc-html-element articleSingle__author__designation\"><\/span>\n<\/div>\n<\/div>\n<\/div>\n\n\n<figure class=\"articleSingle__featuredImage wp-block-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" src=\"https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2021\/06\/Cash-value.webp?quality=80&amp;w=1024\" class=\"attachment-post-thumbnail size-post-thumbnail wp-post-image\" alt=\"A happy couple are preparing dinner at home while they look at cash value options for their life insurance policies.\" style=\"object-fit:cover;\" srcset=\"https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2021\/06\/Cash-value.webp 1074w, https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2021\/06\/Cash-value.webp?resize=300,200 300w, https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2021\/06\/Cash-value.webp?resize=768,512 768w, https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2021\/06\/Cash-value.webp?resize=1024,683 1024w, https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/uploads\/sites\/2\/2021\/06\/Cash-value.webp?resize=412,275 412w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group articleSingle__container__main is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group articleSingle__container__page__nav is-layout-flow wp-block-group-is-layout-flow\">\t\t<div class=\"socials-block\">\n\t\t\t\t\t\t<p class=\"socials-block-title\">\n\t\t\tShare this article\t\t<\/p>\n\t\t<div class=\"social-links mob-mar-b-hlf mob-mar-t-hlf\">\n\t\t\t\t\t<a class=\"social-button-wrapper sharing-custom sharing-email\" href=\"mailto:?subject=Cash Value Life Insurance: How It Works and When to Use It &#038;body=Hi, I thought you might be interested in this article from RBC Insurance: https:\/\/www.rbcinsurance.com\/en-ca\/advice-learning\/life-insurance\/cash-value-life-insurance-how-it-works\">\n\t\t\t\t<img decoding=\"async\" src=\"https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/plugins\/rbc-blocks\/assets\/img\/icons\/icon-email.svg\"\n\t\t\t\talt=\"envelope icon\">\n\t\t\t\t<span>\n\t\t\t\tEmail\t\t\t\t<\/span>\n\t\t\t<\/a>\n\t\t<div class=\"social-button-wrapper sharing-copy-wrapper\">\n\t\t\t<button class=\"sharing-custom sharing-copy\" data-url=\"https:\/\/www.rbcinsurance.com\/en-ca\/advice-learning\/life-insurance\/cash-value-life-insurance-how-it-works\">\n\t\t\t<img\n\t\t\t\tsrc=\"https:\/\/www.rbcinsurance.com\/en-ca\/wp-content\/plugins\/rbc-blocks\/assets\/img\/icons\/icon-related.svg\"\n\t\t\t\talt=\"copy icon\">\n\t\t\t<span id=\"sharing-copyUrl-Label\">\n\t\t\t\tCopy URL\t\t\t<\/span>\n\t\t\t<\/button>\n\t\t\t<input type=\"text\" class=\"sharing-copy-text\" aria-labelledby=\"sharing-copyUrl-Label\">\n\t\t<\/div>\n\t<\/div>\n  \t\t<\/div>\t\n\t\t\n\n\n<div class=\"wp-block-rbc-tabs-list tabsList\" data-switch=\"lgBp\" data-target-heading=\"h2\"><p class=\"tabsList__heading\">On this page<\/p><div class=\"tabsList__wrapper\"><button class=\"selectDropdown__button\" aria-haspopup=\"listbox\" aria-expanded=\"false\"><span class=\"selectDropdown__title\">What is cash value life insurance?<\/span><span class=\"selectDropdown__chevron\"><\/span><\/button><ul class=\"tabsList__items selectDropdown__list\"><li class=\"selectDropdown__list__item tabsList__item selected\"><a href=\"#h-what-is-cash-value-life-insurance\">What is cash value life insurance?<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-types-of-cash-value-insurance\">Types of cash value insurance:<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-how-does-cash-value-life-insurance-work\">How does cash value life insurance work?<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-benefits-of-cash-value-life-insurance\">Benefits of cash value life insurance<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-disadvantages-of-cash-value-life-insurance\">Disadvantages of cash value life insurance<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-when-to-use-cash-value-life-insurance\">When to use cash value life insurance<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-how-to-choose-the-right-cash-value-life-insurance-policy\">How to choose the right cash value life insurance policy<\/a><\/li><li class=\"selectDropdown__list__item tabsList__item \"><a href=\"#h-faqs-about-cash-value-life-insurance\">FAQs about cash value life insurance<\/a><\/li><\/ul><\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-group articleSingle__content__main tabListHeadings is-layout-flow wp-block-group-is-layout-flow\">\n<section class=\"wp-block-rbc-section-block  pos-rel\" style=\"border-radius:0px\">\n<div class=\"wp-block-rbc-section-inner-block  section-inner \" style=\"border-radius:0x\">\n<p>More than half of Canadians understand the importance of having life insurance, according to <a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/advice-learning\/newsroom\/whats-the-plan-when-life-happens-most-canadians-dont-have-one-rbc-insurance-poll\/\" data-dig-id=\"LP-LifeInsurance-32282-a9dae21c\" data-dig-label=\"a recent insurance poll\" data-dig-action=\"link click\" data-dig-category=\"LP-LifeInsurance\" class=\"rbc-link-format\">a recent insurance poll<\/a>. But did you know there\u2019s a particular type of life insurance policy that could also help increase your wealth? Cash value life insurance policy does just that. As well as offering permanent life insurance protection, it acts as a financial investment tool to help you accumulate wealth. <\/p>\n\n\n\n<p>Discover what cash value life insurance is, how it works, and its benefits in deciding if a cash value life insurance policy is right for you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-key-takeaways\">Key takeaways<\/h3>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>A cash value life insurance policy combines permanent coverage with a savings component that accumulates over time.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Policyholders have the option to access their cash value through loans, withdrawals, or policy surrender.<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>Though cash value life insurance typically costs more than term insurance, it provides lifelong coverage and potential tax-deferred growth benefits.<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-cash-value-life-insurance\">What is cash value life insurance?<\/h2>\n\n\n\n<p>A cash value life insurance policy has two parts: a death benefit and a \u201ccash value\u201d component. The death benefit is the tax-free <a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/advice-learning\/life-insurance\/what-is-a-life-insurance-beneficiary\/\" data-dig-id=\"LP-LifeInsurance-32282-a9dae21c\" data-dig-label=\"payout your beneficiary\" data-dig-action=\"link click\" data-dig-category=\"LP-LifeInsurance\" class=\"rbc-link-format\">payout your beneficiary<\/a> or beneficiaries receive after you die. <\/p>\n\n\n\n<p>The cash value component is a tax-deferred savings feature that grows over time, meaning you don\u2019t pay tax on any growth in the cash value\u2014unless you access the cash value during the life of the policy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-types-of-cash-value-insurance\">Types of cash value insurance:<\/h2>\n\n\n\n<p>There are three types of cash value insurance: whole life insurance, universal life insurance, and participating life insurance. All three combine permanent life insurance coverage and an investment component.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-whole-life\">Whole life<\/h3>\n\n\n\n<p><a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/life-insurance\/whole-life-insurance\/\" data-dig-id=\"LP-LifeInsurance-32282-a9dae21c\" data-dig-label=\"Whole life insurance\" data-dig-action=\"link click\" data-dig-category=\"LP-LifeInsurance\" class=\"rbc-link-format\">Whole life insurance<\/a> is permanent life insurance that provides you with lifelong coverage\u2014as long as you pay your premiums, which remain fixed\u2014even if your health changes. Your beneficiary will receive a tax-free payment after you die. But while you\u2019re still living, you can access the accrued cash value for what you need\u2014for example, debt payments, charitable donations, or education.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-universal-life\">Universal life<\/h3>\n\n\n\n<p>Universal life insurance offers flexible permanent coverage in addition to a cash value element. You\u2019ll receive lifetime coverage, provided you pay your premiums.<\/p>\n\n\n\n<p>How it works is a portion of your premiums go towards purchasing life insurance, while the remainder earns interest tax-free through an investment portfolio.<\/p>\n\n\n\n<p>With <a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/life-insurance\/universal-life-insurance\/\" data-dig-id=\"LP-LifeInsurance-32282-a9dae21c\" data-dig-category=\"LP-LifeInsurance\" data-dig-action=\"link click\" data-dig-label=\"universal life insurance\" class=\"rbc-link-format\">universal life insurance<\/a>, you have the flexibility to choose how your money will be invested for the purpose of earning interest or a licensed insurance advisor can help choose the right options based on your goals.<\/p>\n\n\n\n<p>Unlike whole life insurance, universal life insurance allows you to raise or lower your premiums within certain limits to keep your policy in force \u2013 which also helps make it less expensive than whole life coverage. However, lowering premiums for too long it could affect how much your beneficiary receives after you die.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-participating-life\">Participating life<\/h3>\n\n\n\n<p>A <a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/advice-learning\/life-insurance\/dividend-scale-and-participating-whole-life-insurance\/\" data-dig-id=\"LP-LifeInsurance-32282-a9dae21c\" data-dig-category=\"LP-LifeInsurance\" data-dig-action=\"link click\" data-dig-label=\"participating life insurance policy\" class=\"rbc-link-format\">participating life insurance policy<\/a> pools your premiums, as well as those of other policyholders, into a participating account that\u2019s managed by a professional investment team with an insurance provider. <\/p>\n\n\n\n<p>Also known as par insurance,&nbsp;a participating life insurance policy may pay out dividends to you, as the policyholder, on the policy\u2019s anniversary. Your insurance provider calculates the yearly dividend payments using a formula known as the&nbsp;<a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/advice-learning\/life-insurance\/dividend-scale-and-participating-whole-life-insurance\/\" data-dig-id=\"LP-LifeInsurance-32282-a9dae21c\" data-dig-category=\"LP-LifeInsurance\" data-dig-action=\"link click\" data-dig-label=\"dividend scale\" class=\"rbc-link-format\">dividend scale<\/a>. That dividend could then be used to: buy more coverage, be applied to your monthly premiums, paid out directly to you each year, or held on deposit earning interest.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-cash-value-life-insurance-work\">How does cash value life insurance work?<\/h2>\n\n\n\n<p>Compared to term life insurance, cash value life insurance can be more complicated to understand. Here\u2019s a breakdown of how it works:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-premium-allocation\">Premium allocation<\/h3>\n\n\n\n<p>With a permanent life insurance policy, you must pay monthly premiums. These premiums are allocated toward three categories. One portion of your premium goes to the death benefit, another portion goes to your insurer, and the last portion goes towards increasing your policy\u2019s cash value.<\/p>\n\n\n\n<p>Over the course of your policy, the funds allotted to the cash value <em>decrease <\/em>and those paid to cover your insurance <em>increase<\/em> as you age. This is because the cost of insuring a life costs more the older you get.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cash-value-growth\">Cash value growth<\/h3>\n\n\n\n<p>The cash value of your policy can grow over time, but it depends on the type of policy. A whole life policy usually involves less risk because it comes with a guaranteed cash value. On the other hand, the cash value growth in universal life and participating life insurance is variable, as it depends on the performance of the stocks, bonds, or mutual funds linked to the market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-accessing-cash\">Accessing cash<\/h3>\n\n\n\n<p>It typically takes between two to five years for the cash value to grow. As it does, you may be able access cash from your policy\u2014for any life emergencies or to help fund a major purchase\u2014in the three ways.<\/p>\n\n\n\n<p><strong>Policy loan:<\/strong> You may be able to take out a loan against a portion of the cash value in your policy. You won\u2019t be able to take out the entire amount because the loan balance and interest charges reduces the net cash value, effectively cancelling your policy and your coverage will end.<\/p>\n\n\n\n<p><strong>Withdrawals:<\/strong> Depending on the accumulated cash value, you may be able to withdraw a portion of the cash. It\u2019s important to note that there may be tax implication, and your beneficiary would receive less money after you die.<\/p>\n\n\n\n<p><strong>Surrender the policy:<\/strong> When you surrender your policy, you basically cancel your policy with the insurance company to receive the full cash surrender value\u2014minus any loans, loan interest, outstanding premiums, or surrender fees. <\/p>\n\n\n\n<p>Your insurance company will pay you the cash surrender value, if there is any available, and your beneficiary will not receive any death payment in the event of your death. In addition to your life insurance coverage ending, some or all the money you receive may be subject to tax.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-benefits-of-cash-value-life-insurance\">Benefits of cash value life insurance<\/h2>\n\n\n\n<p>Cash value life insurance has many benefits, including permanence. Your insurance coverage is in place for your entire life, provided you pay your premiums. This differs from term life insurance, which covers you for a fixed period, typically between 10 and 30 years.<\/p>\n\n\n\n<p>Here are a some of the benefits of cash value life insurance:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-flexibility-nbsp\">Flexibility&nbsp;<\/h3>\n\n\n\n<p>Cash value life insurance provides financial flexibility. As the policyholder, you could access funds for rainy-day emergencies, education, or retirement or estate planning. In a participating cash life insurance policy, you can use yearly dividends to help pay your premiums or increase your coverage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-tax-advantage\">Tax advantage<\/h3>\n\n\n\n<p>The cash value component of your policy grows on a tax-deferred basis. This allows your savings to accumulate faster than in a taxable account. And, if you need to borrow against the cash value component your policy, you could do so tax-free.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-growth\">Growth<\/h3>\n\n\n\n<p>A whole life insurance policy provides predictable cash value growth.However, if you have a variable cash life policy, the cash value of your policy may increase or decrease depending on the performance of the type of investments you choose, which are linked to the market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-disadvantages-of-cash-value-life-insurance\">Disadvantages of cash value life insurance<\/h2>\n\n\n\n<p>While cash value life insurance has benefits, there are also some disadvantages. It\u2019s important to understand what they are as cash value life insurance may not be the right product for you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-complexity\">Complexity<\/h3>\n\n\n\n<p>Cash value life insurance policies are generally harder to grasp as they\u2019re more complex than term life policies. You\u2019ll need to ensure you understand the policy terms, the difference in fees, and your investment options. These all vary depending on the type of cash value life insurance policy you purchase. If you have questions, an accredited insurance broker can help.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-higher-premiums-and-charges\">Higher premiums and charges<\/h3>\n\n\n\n<p>Typically, cash value insurance policy is more expensive than term life insurance; in some instances, premiums can be five to 15 times higher than term life coverage. It\u2019s important to consider how cash value insurance fits in your budget and investment goals. In addition, if you surrender your policy early (i.e., cancel your policy), you could pay significant fees, and you will lose your coverage.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-opportunity-cost\">Opportunity cost<\/h3>\n\n\n\n<p>With cash value life insurance, you\u2019re generally paying higher premiums. Consider the opportunity cost compared to other savings vehicles such as a Registered Retirement Savings Plan (RRSP) or Tax-Free Savings Account (TFSA). <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-policy-lapses\">Policy lapses<\/h3>\n\n\n\n<p>As the policyholder, if you fail to pay the required premiums, your life insurance policy will lapse, meaning you will no longer be covered. In the event of your death, your beneficiary will not be eligible to receive the death benefit payout.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-when-to-use-cash-value-life-insurance\">When to use cash value life insurance<\/h2>\n\n\n\n<p>Your decision to buy a cash value life insurance policy will depend on your unique situation and how much flexibility you need.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-long-term-financial-goals\">Long-term financial goals<\/h3>\n\n\n\n<p>A cash value life insurance policy may be suitable for individuals with long-term goals, such as retirement planning or leaving a legacy for family or loved ones.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-estate-planning\">Estate planning<\/h3>\n\n\n\n<p>With a cash value life insurance policy, you can plan for your future with confidence as the death benefit is guaranteed. After you die, the cash value life insurance policy can help with <a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/advice-learning\/retirement\/what-is-estate-planning\/\" data-dig-id=\"LP-LifeInsurance-32282-a9dae21c\" data-dig-category=\"LP-LifeInsurance\" data-dig-action=\"link click\" data-dig-label=\"estate planning\" class=\"rbc-link-format\">estate planning<\/a> by covering estate taxes, and ensuring your beneficiary or beneficiaries receive their intended full inheritance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-high-net-worth-individuals\">High net-worth individuals<\/h3>\n\n\n\n<p>If you\u2019re a <a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/discover-share\/life-insurance\/do-you-need-life-insurance-if-you-are-wealthy-2\/\" data-dig-id=\"LP-LifeInsurance-32282-a9dae21c\" data-dig-category=\"LP-LifeInsurance\" data-dig-action=\"link click\" data-dig-label=\"high net worth individual\" class=\"rbc-link-format\">high net worth individual<\/a>, you may want to explore the possibility of a cash value life insurance policy \u2013 especially if you\u2019ve maximized your other tax-advantaged accounts such as RRSPs and TFSAs. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-business-owners\">Business owners<\/h3>\n\n\n\n<p>As a business owner, you may find a cash value life insurance policy useful as an executive compensation strategy, as a buy-sell agreement, or as collateral for a loan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-choose-the-right-cash-value-life-insurance-policy\">How to choose the right cash value life insurance policy<\/h2>\n\n\n\n<p>Choosing the right cash value life insurance policy will depend on your financial goals, personal needs, stage of life, and what you can afford.<\/p>\n\n\n\n<p>Cash value life insurance may be beneficial if you if:<\/p>\n\n\n\n<ul class=\"wp-block-rbc-list is-style-blue-disc\">\n<li class=\"wp-block-rbc-list-item\">\n<p>You want life-long insurance coverage<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You have reached the limits on your other tax-advantaged accounts and want another tax-deferred savings vehicle<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You want predicable growth and a guaranteed death benefit for your beneficiary<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p><a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/discover-share\/retirement\/create-the-right-retirement-income-plan-ds\/\" data-dig-id=\"LP-LifeInsurance-32282-a9dae21c\" data-dig-category=\"LP-LifeInsurance\" data-dig-action=\"link click\" data-dig-label=\"Plan to use policy loans in retirement\" class=\"rbc-link-format\">Plan to use policy loans in retirement<\/a> for tax-efficient income<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You are a high earner or business owner and want both life insurance and an investment component<\/p>\n<\/li>\n\n\n\n<li class=\"wp-block-rbc-list-item\">\n<p>You want to ensure more of your estate stays intact when you pass away<\/p>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-assess-your-financial-goals\">Assess your financial goals<\/h3>\n\n\n\n<p>Consider your financial goals. Think about what you want or need your money for. Retirement? Estate planning? Your business?<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-compare-policies\">Compare policies<\/h3>\n\n\n\n<p>Choosing between whole life and universal life insurance depends on your circumstances and needs. Whole life insurance might be right for you if you want a simple plan with guarantees and fixed premiums. Universal life insurance may be ideal if you want payment flexibility and are willing to actively manage your policy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-evaluate-costs\">Evaluate costs<\/h3>\n\n\n\n<p>Remember, a permanent life insurance policy is typically more expensive than a term life insurance policy. In addition, if you choose a variable cash life policy, the cash value of your policy may increase with your investments, but it may also decrease. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-work-with-an-accredited-advisor\">Work with an accredited advisor<\/h3>\n\n\n\n<p>As with most things in life, if you\u2019re not 100% sure which insurance product is right for you, consult with a licensed advisor. They can guide you to the policy that aligns best with your overall financial plans and goals.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-is-cash-value-life-insurance-right-for-you\">Is cash value life insurance right for you?<\/h3>\n\n\n\n<p>Cash value life insurance policies combine insurance coverage with savings and investment growth, which can be a benefit in long-term financial planning. While cash life value insurance policy may not be right for every Canadian, it can be a powerful tool if you have specific financial goals and can commit to lifelong premiums.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs-about-cash-value-life-insurance\">FAQs about cash value life insurance<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-is-cash-value-life-insurance-worth-it\">Is cash value life insurance worth it?<\/h3>\n\n\n\n<p>Cash value life insurance may be worth it for you. The policy is in place for your entire life, if premiums are maintained, and your family and loved ones will receive a guaranteed benefit after you die.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Can I cancel my life insurance policy and get my money back?<\/h3>\n\n\n\n<p>Yes, you can cancel your policy and take the cash value, but the cash value you\u2019ll receive will be minus any surrender charges. A surrender charge is a fee you, as the policyholder, pay when you cancel your life insurance policy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is the downside of cash value life insurance?<\/h3>\n\n\n\n<p>Cash value life insurance premiums tend to be higher than term life insurance premiums. In the end, you could end up paying more in premiums over the course of your life\u2014possibly more than what your policy\u2019s death benefit is worth.<\/p>\n\n\n\n<div class=\"wp-block-rbc-section-inner-block  section-inner block-wpr bg-light-blue rounded-corners pos-rel pad-l pad-r mob-pad-r centered-block mob-pad-l pad-t mob-pad-t pad-b mob-pad-b\" style=\"border-radius:0x\">\n<h2 class=\"wp-block-heading has-text-align-center mar-t mar-b-hlf mob-mar-b-hlf mob-mar-t\" id=\"h-rbc-life-insurance\">RBC Life Insurance<\/h2>\n\n\n\n<p class=\"has-text-align-center mar-b-hlf mob-mar-b-hlf pad-r mob-pad-r pad-l mob-pad-l has-text-reg-font-size\">Protect Your Loved Ones With Dependable Life Insurance.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-a89b3969 wp-block-buttons-is-layout-flex\"><div>\n<div class=\"wp-block-button aligncenter btn is-style-primary primary\"><a class=\"wp-block-button__link has-text-lg-font-size has-custom-font-size wp-element-button\" href=\"https:\/\/www.rbcinsurance.com\/life-insurance\/life-insurance-quote\/index.html\" rel=\"noreferrer noopener\" data-dig-id=\"LP-283-476a44f4\" data-dig-category=\"LP\" data-dig-action=\"button click\" data-dig-label=\"Get a quote-https:\/\/www.rbcinsurance.com\/life-insurance\/life-insurance-quote\/index.html \">Get a quote<\/a><\/div>\n<\/div><\/div>\n\n\n\n<p class=\"has-text-align-center mar-t-hlf mob-mar-t-hlf pad-b mob-pad-b has-text-reg-font-size\"><a href=\"https:\/\/www.rbcinsurance.com\/en-ca\/life-insurance\/\" data-dig-id=\"LP-273-18de2c2e\" data-dig-category=\"LP\" data-dig-action=\"link click\" data-dig-label=\"Learn More\" class=\"rbc-link-format\">Learn More<\/a><\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-rbc-rbc-default-collapsible\"><p><button class=\"collapse-toggle collapsed\" data-target=\"#collapse2de7ba0a\" data-toggle=\"collapse\" aria-expanded=\"false\" aria-controls=\"collapse2de7ba0a\" data-dig-id=\"LP-10384-2de7ba0a\" data-dig-category=\"LP\" data-dig-action=\"accordion closed\" action-closed=\"accordion closed\" action-opened=\"accordion open\" data-dig-label=\"Things Our Lawyers Want You to Know\"><div>Things Our Lawyers Want You to Know<\/div><\/button><\/p><div class=\"collapse-content collapse\" id=\"collapse2de7ba0a\">\n<div class=\"wp-block-rbc-collapsible-inner-block collapse-inner\">\n<p class=\"has-text-sm-font-size\">*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.<\/p>\n\n\n\n<p class=\"has-text-sm-font-size\">This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.<\/p>\n<\/div>\n<\/div><\/div>\n\n\n\n\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Cash value life insurance provides lifelong protection and acts as a financial investment tool for Canadians. Here\u2019s how it works and when to use it. <\/p>\n","protected":false},"author":208,"featured_media":32283,"comment_status":"open","ping_status":"open","sticky":false,"template":"templates\/new-rbci-design.php","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[54],"tags":[4],"article-type":[80],"ppma_author":[169],"class_list":["post-32282","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-life-insurance","tag-life-insurance","article-type-advice-learning"],"pp_force_visibility":null,"pp_subpost_visibility":null,"pp_inherited_force_visibility":null,"pp_inherited_subpost_visibility":null,"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Cash Value Life Insurance: How It Works and When to Use It | RBC Insurance<\/title>\n<meta name=\"description\" content=\"Cash value life insurance provides lifelong protection and acts as a financial investment tool for Canadians. 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