Learn the basics of permanent life insurance and how it differs from term coverage, so you can have an informed conversation with a licensed insurance professional.
Permanent life insurance is designed to provide coverage for your entire lifetime. In addition to providing a death benefit to your beneficiaries, many permanent life insurance policies can also build cash value over time, which may be accessed during your lifetime through withdrawals or policy loans.
Permanent life insurance may be used for long-term family protection, legacy planning, tax-advantaged cash value accumulation, business planning, or retirement income strategies. Because these policies are designed for long-term needs, it is important to review the cost, benefits, risks, and flexibility before deciding if it is the right fit.
Common types of permanent life insurance include whole life and universal life, among others. Each type works differently, and features vary widely by product and carrier.
Permanent life insurance policies may offer some of the following features, depending on the specific product and carrier:
Coverage that may last for your lifetime, as long as premium requirements are met
The potential to accumulate cash value over time, which may be accessed under certain policy terms
Flexibility for certain planning needs, such as estate planning or supplementing other financial goals
In some cases, the ability to adjust premiums or death benefits, depending on the product
Features, availability, and performance vary by product and carrier and are subject to the terms of the policy contract. Not all products offer all features described above, and any potential cash value growth is not guaranteed unless specifically stated in the policy contract.
Term life insurance is generally designed to provide coverage for a specific period of time, such as 10, 20, or 30 years, and typically does not build cash value. Permanent life insurance is generally designed for lifetime coverage and may include a cash value component. The right choice depends on your individual goals, budget, and circumstances, and is best discussed with a licensed insurance professional.
Are you looking for coverage for a specific period of time, or for your lifetime?
Is building potential cash value a priority for your financial plan?
What is your budget for ongoing premiums?
Do you have estate planning or wealth transfer goals that permanent coverage may help address?
Request a quote and a licensed insurance professional can help answer your questions. There's no obligation to apply.
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