Discover the Key Features of Permanent Life Insurance

While many people enjoy the flexibility and lower cost of term life insurance, there are key benefits to permanent life insurance. Whole life insurance and universal life insurance offer the peace of mind of full lifetime coverage. You don’t have to guess at what term length is going to be the right amount for you. Permanent life insurance policies also have cash value, allowing the policy owner to borrow funds when needed for major expenses, emergencies, and more. Learn more about the key features of permanent life insurance to decide if it is the right option for you.

Permanent Insurance Can Help You Build a Savings

A life insurance policy provides a death benefit to your loved ones when you pass, so that they are financially covered for things like final expenses and other costs you want to help support. Permanent life insurance also helps you build a savings that you can cash out on when you need funds. Some permanent life insurance policies allow you to pay your premium with the cash you have accumulated with your policy. You can also get your cash value back if you decide to cancel your coverage under certain circumstances. The cash value of your policy is separate from your death benefit, so depending on the policy you purchase, your beneficiaries may not receive the cash value of your policy if you pass.

Permanent Insurance Policies Provide Lifetime Coverage

With term life insurance you select a specific term (number of years) you want coverage for. When the term ends, so does coverage. If you outlive your policy, you will have to find alternative coverage, which will often be more expensive, as you will be older at the that time. Permanent life insurance does not expire, as long as you continue to make premium payments. The policy only ends when the insured person passes away or surrenders their policy.

Permanent Insurance Provides Tax Benefits

High income earners or people with high net worth like permanent life insurance, because it comes with certain tax benefits not offered by term life insurance. The cash value you earn from your permanent life insurance policy is tax-deferred. This is similar to the gains you get from a retirement account. Life insurance policies can pay out dividends. You won’t pay income taxes on those dividends unless the amount of money you get is more than the amount you paid in premiums. If you cancel your coverage and receive the cash value, you also won’t have to pay income taxes unless the amount is higher than what you paid in premiums.

Permanent Life Insurance Premiums are Set for Life

The last thing you want to worry about when you’re retired is having to pay fluctuating life insurance premiums. That makes it difficult to budget and plan financially. With permanent life insurance your premiums are set for your life, so you will always pay the same amount.

Permanent Life Insurance Can Help You Provide an Inheritance

With a permanent life insurance policy, you can provide a tax-free death benefit to the beneficiaries of your choosing. You can use your life insurance policy to provide an inheritance, instead of using your retirement or other savings to provide one.

Get a Free Permanent Life Insurance Quote

Don’t put it off any longer. Use our easy quote form to get free quotes for permanent life insurance and find the right policy for your financial needs.