Permanent life insurance provides insurance coverage for your entire lifetime.
In many cases, permanent life insurance is the safest way to make sure you have coverage when your time on this earth runs out. (We call this “winning the game of life insurance.”)
Watch the video below to find out how to maximize your chances of winning the game.
Remember – a life insurance policy is worthless unless it’s in force when you die.
That being said, every situation is unique. That’s why life insurance comes in many different shapes and sizes. Speaking with an experienced professional may help you understand what kind of policy is best for you.
Is Permanent Life Insurance Right for You?
Permanent insurance is the granddaddy of life insurance policies. It’s more expensive than term life insurance, but it provides several important advantages:
- Your beneficiaries are guaranteed to receive the death benefit when you die,1 generally income tax-free. You can’t outlive the coverage (unlike term) and the insurance company can never cancel your policy as long as your premiums are paid on time.
- Your premiums can be structured to remain level for life. The younger and healthier you are when you buy, the lower your premiums will be.
- This can make a huge difference in how much you pay in the long run. Renewing a term life insurance policy at the end of a 20- or 30-year term may be surprisingly expensive – if you can even qualify for one. As you get older and/or your health deteriorates, it gets harder to qualify for a new policy.
- Permanent life insurance policies typically build cash value that you can access at any time.
- If your policy is accumulating cash value, the cash surrender values grow on a tax-deferred basis.
Three Types of Permanent Life Insurance
Whole Life Insurance
Whole life is the “Rolls-Royce” of life insurance. It costs more, but it does more than other kinds of coverage. The video below tells you more about when it makes sense to buy whole life insurance.
Whole life policies develop significant guaranteed cash values which the policyholder can access at any time. Each year, the cash values grow.
Premiums can usually be structured to stay level for as long as you live. Or, if you wish, they can be paid over a shorter period, such as 20 years, 10 years, or even a single premium for a lifetime of guaranteed coverage.
For those who want the best of everything, whole life is an amazing financial instrument.
After 30 years in the industry, we haven’t found a person who has owned a whole life policy for 20 years or longer that isn’t happy with it.
Universal Life Insurance
Universal life insurance offers permanent coverage with a certain amount of built-in flexibility. Policyholders can change their premiums and death benefits to adjust to changes in their lives and goals.
As with whole life, universal life insurance policies can build cash value. But cash values on today’s universal life policies – especially those that are less expensive than whole life policies – tend to be much smaller.
Universal life insurance is typically less expensive than whole life. They can still be structured with level premiums and guaranteed death benefits for life.
Survivorship or Second-to-Die Life Insurance
A second-to-die life insurance policy, also called survivorship life insurance, covers two individuals (usually a married couple) and delays the payment of the death benefit until the second person’s death.
It is generally less expensive than buying two individual life policies. It has become popular with wealthy couples since the mid-1980’s as a method of offsetting their estate tax liabilities.
Survivorship life insurance may be a particularly attractive option if:
- You want to protect your estate and/or pay the taxes on behalf of your children
- Set up a trust fund to support your children/grandchildren
With a second-to-die life insurance policy, the death benefit arrives just in time to make those things happen.
Should You Consider a Permanent Life Insurance Policy?
Call 800-442-9899 today and we’ll help you figure out what kind of policy makes the most sense for your needs. You can also click the “Get Started” button to get a free permanent life insurance quote. It’s quick and easy.
1 Assuming you purchase a guaranteed, no lapse policy and you pay your premiums on time each year.