Permanent Life Insurance

What is Permanent Life Insurance?

Permanent life insurance is a type of life insurance policy that provides coverage for the entire duration of your life, as long as premiums are paid. It not only offers a death benefit to beneficiaries but also includes a cash value component that grows over time, serving as a savings or investment vehicle.

Key Features of Permanent Life Insurance:

1. Lifelong Coverage: This policy remains in force throughout your lifetime, providing a guaranteed death benefit to your beneficiaries upon your passing.

2. Cash Value Growth: A portion of your premiums goes into a cash value account that grows tax-deferred over time. You can borrow against or withdraw from this cash value for various purposes.

3. Flexible Premiums: Some permanent life insurance policies allow flexibility in premium payments, letting you adjust payments or use accumulated cash value to cover premiums.

Types of Permanent Life Insurance:

1. Whole Life Insurance: Offers fixed premiums, guaranteed death benefit, and steady cash value growth.

2. Universal Life Insurance: Provides flexibility in premiums and death benefits, allowing you to adjust coverage and premium payments over time.

3. Variable Life Insurance: Allows you to invest the cash value in various investment options, offering the potential for higher returns but with associated risks.

Benefits of Permanent Life Insurance:

1. Lifetime Protection: Ensures financial security for your family regardless of when you pass away.

2. Cash Value Growth: Builds a tax-deferred savings component that can be used for emergencies, retirement, or other financial needs.

3. Estate Planning: Can be used as part of an estate plan, providing liquidity to cover estate taxes or leaving an inheritance.

Is Permanent Life Insurance Right for You?

Permanent life insurance is suitable for individuals looking for lifelong coverage, an investment component, and potential tax advantages. However, it's essential to consider your financial goals, risk tolerance, and affordability before purchasing a policy.

Final Thoughts

Permanent life insurance offers both protection and financial growth, serving as a versatile financial tool. To explore personalized options and understand how this policy fits your needs, consult with one of our licensed agents.