See how a level premium overfunds the early years to build cash value that carries the rising cost of insurance later.
Uncheck to set your own premium and watch the cash value under- or over-fund.
The right axis shows the pure yearly (YRT) cost to insure the full face at each age, vs your level premium.
Cash value · 20 yrs
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Cash value · age 65
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Break-even year
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CSV ≥ premiums paid
Death benefit
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Level, guaranteed
How this works. Permanent insurance charges a level premium for life. Early on that premium far exceeds the
true cost of insuring you, and the surplus accumulates as a reserve: your cash surrender value. Later, when the
real cost of insurance climbs (watch the orange overlay cross your premium line), that reserve makes up the difference so your
premium can stay level. Surrender the policy and you receive the cash value, less any early surrender charge (the drag in years 1–10).
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.