How It Works
Unlike term life insurance, permanent doesn’t have to select a policy term or end date. As long as you continue paying, your policy will last your entire lifetime. If you’re looking for lifelong protection that builds cash value, this may be for you.
- ● Provides lifelong protection
- ● Available for ages 18-85
- ● Accumulate cash value on a tax-deferred basis
- ● Remains in force as long as you continue to pay
Question: Should You Get It?
You may be asking yourself why would someone even need life insurance for an extended period? Contrary to what most people think, the need for life insurance persists long after you’ve paid for your children’s education and the mortgage. What if your spouse outlived you 10, 20, or maybe even 30 years? Without life insurance, would your spouse be able to continue maintaining the lifestyle they’ve grown accustomed to?
Permanent life insurance is for those who want a coverage that lasts a lifetime and builds cash value. If you want to leave a legacy guaranteeing money for your kids and even grandkids when you pass away, this policy may be for you.
However, these policies are designed and priced for you to keep over a long period of time. In this case, this may be the wrong type of insurance for you if you don’t have a long-term need for life insurance coverage.
Cash Value—A Key Feature
Another key characteristic of permanent insurance is a feature known as cash value or cash-surrender value. In fact, permanent insurance is often referred to as cash-value insurance because these types of policies can build cash value over time, as well as provide a death benefit to your beneficiaries.
Cash values, which accumulate on a tax-deferred basis just like assets in most retirement and tuition savings plans, can be used in the future for any purpose you wish. If you like, you can borrow cash value for a down payment on a home, to help pay for your children’s education or to provide income for your retirement. When you borrow money from a permanent insurance policy, you’re using the policy’s cash value as collateral and the borrowing rates tend to be relatively low. And unlike loans from most financial institutions, the loan is not dependent on credit checks or other restrictions. You ultimately must repay any loan with interest or your beneficiaries will receive a reduced death benefit and cash-surrender value.
If you need or want to stop paying premiums, you can use the cash value to continue your current insurance protection for a specified time or to provide a lesser amount of death benefit protection covering you for your lifetime. If you decide to stop paying premiums and surrender your policy, the guaranteed policy values are yours. Just know that if you surrender your policy in the early years, there may be little or no cash value.
Get A Quote And Compare Rates
We partner with leading insurance companies to provide you with the most affordable rates on the market. We will show you a few different policy options and estimated rates. From there, you can continue with the company that’s best fits you.
Depending upon the kind of coverage you get, a medical exam may be required to secure the best rate. See what other life insurance policies we have to offer.