Permanent Life Insurance

Permanent life insurance policies cover you for your entire life. They protect your family from ever being stuck with unexpected expenses when you pass on.

Permanent life insurance isn’t just about protection for when you’re gone, though. They can also provide you with a source of income for the here and now.

How Permanent Life Works

A permanent life insurance policy has two parts: a benefit value and a cash value.

• The benefit value provides a payout to your loved ones — called “beneficiaries” in the insurance world. In many policies, if you reach a certain age the policy pays out the benefit value to you.
• The cash value builds over the life of the policy. You can draw off this value, or invest it for even greater returns. But keep in mind, policies have different conditions about how the cash value can be used.

Kinds Of Permanent Life Insurance

There are three main kinds of permanent life insurance.

• Whole life insurance is the most traditional kind of life insurance. In a whole life policy, the premium stays the same for the entire life of the policy. That means the younger you are when you buy it, the cheaper your premium is.
• Universal life insurance gives you advantage of paying flexible premiums. The amount of premiums you pay can increase or decrease the benefit value, making it easier to fit into your monthly budget. But the payout on a universal life policy isn’t guaranteed. If you don’t pay enough in premiums over the course of the policy, it may not provide a payout at all.
• Variable universal life insurance also has flexible premiums. But it lets you invest the cash value in a variety of different accounts. This gives you the potential for seeing greater returns on the value of the policy during your lifetime. Variable universal life is a good choice for people who are experienced investors.

Choosing the right policy for your needs can be difficult. To make it easier, talk with a professional life insurance agent. By filling out our short online life insurance form, you can get matched with agents in your area. They’ll answer your questions, give you free quotes, and help you find the right policy.