Same whole life coverage, four ways to pay for it: see how the schedule changes the premium, when the policy becomes paid-up, and how fast cash value builds.
The grey dashed line always shows lifetime-pay cash value as a reference.
Annual premium
—
Policy paid-up
—
Total premiums paid
—
Cash value at paid-up
—
How this works. A whole life policy can be funded on different schedules for the same lifelong coverage.
Pay a single lump sum and the policy is paid-up immediately; choose a limited-pay plan (10-pay, 20-pay, or to age 65)
and premiums stop (the policy becomes paid-up) at the end of that period; choose lifetime pay and smaller premiums continue for life.
The fewer years you pay over, the higher each premium, but the faster the reserve (your cash surrender value) compounds,
and once premiums stop that reserve carries the rising cost of insurance on its own.
Educational illustration of standard Canadian insurance concepts. Figures are illustrative, not an insurer’s rates.
Illustration only, not a quote or advice. Figures are simplified for education and do not
reflect any specific insurer's rates. Consult a licensed advisor.