Permanent Insurance
Permanent life insurance is usually an appropriate way for people to meet long-term needs. Over time, it may be the least expensive form of life insurance since premiums are fixed and it builds value. However, the cost of premiums is often much higher than for term insurance. Also called "whole life" or "universal life", permanent life insurance combines pure insurance coverage with an investment fund.
Many permanent insurance policies offer fixed premiums for guaranteed maximum terms (say, 10 or 20 years). At the end of the term, the policy can be fully "paid up". Such policies are suitable for people with a long term need for life insurance, who want to accumulate cash value to provide funds for education, retirement or other future goals. Over time, permanent insurance may be more economical than term insurance since premiums do not increase with age and the policy can build cash value.
The policy can be designed so that the investment fund or cash surrender value accumulates within the policy tax-free. Such a fund can be borrowed against or "cashed out" in later years. However, doing so will have a tax cost.
Who Should Consider Permanent Insurance?
Permanent insurance is for people who have a long term need for life insurance. They want to accumulate cash value to provide funds for education, retirement or other future goals. They also want to take advantage of the investment advantages of cash value life insurance policies.
If you are interested in permanent insurance, but not sure if it's right for you, please contact us. We can help design the best programs to suit your individual needs and budget.
|
