Permanent Life Insurance

level-premium-term-insurancePermanent Life Insurance provides lifelong protection and the ability to accumulate cash value on a tax deferred basis.

Unlike term life insurance insurance, a permanent life insurance policy will remain in force as long as you continue to pay your premiums.

Types of Permanent Life Insurance
Permanent life insurance is a term that encompasses a wide variety of life insurance plans that all contain the unique ability to have lifetime coverage and accumulate money inside the policy on a tax favorable basis.

Cash Value
A key feature of permanent life insurance is the cash value. Often times, permanent life insurance is referred to as cash value life insurance because of the ability for the policy to build up cash over time, as well as provide a death benefit for the beneficiary. The cash value component of a permanent life insurance policy accumulates on a tax deferred basis like assets in most retirement plans. The funds in these permanent plans are accessible and are often used as accumulation vehicles for savings goals such as supplemental retirement income, a down payment for a house, or college education. An additional feature of a cash value life insurance plan is the ability to stop paying premiums at some future point and have the coverage remain in force. As long as there is sufficient cash value inside the policy, the insured can use the cash value to pay premiums for the policy to cover the cost.

Whole Life Insurance
If you are the type of person who is looking for safety and predictability over time, then whole life insurance may be the right product for you. Whole Life Insurance provides you with the certainty of a guaranteed death benefit and a guaranteed rate of return on your cash values. It also has a level premium that is guaranteed to never increase for life. Another benefit of a participating whole life insurance policy is the opportunity to earn dividends. Dividends give you the opportunity to receive an enhanced death benefit and cash value growth. Dividends are a way for the company to share part of its favorable results with policyholders.

Universal Life Insurance
The defining characteristic of a Universal Life Insurance policy is its flexibilty. Universal Life offers adjustable premiums that give you the option to make higher premium payments when you have extra cash on hand or lower ones when money is tight. Unlike whole life insurance, universal life insurance provides the policyholder with options to increase or decrease the death benefit, adjust the premiums according to a plan or change in budget, and customize the policy specific to your needs and goals. The three most popular types of universal life insurance are no-lapse guarantee universal life insurance, index universal life insurance, and variable universal life insurance.

No-lapse guarantee universal life insurance provides a guaranteed death benefit usually to a pre-determined age, accumulates minimal cash value as to make the premium costs more affordable, and will provide a minimum guaranteed interest rate. Sometimes no-lapse universal life policies are referred to as “extended term” policies since these policies are designed to assure a death benefit will be paid to your family within a designated period of time. These policies are most common for individuals who seek affordable, long term coverage(into retirement), and care less for the accumulation ability of permanent insurance.
Equity Indexed Universal Life Insurance

EIUL places emphasis on the ability to grow assets inside the policy with limited participation in the market. With the EIUL policy, your cash value is tied to the performance of a financial index and fluctuates with the performance of that index.

EIUL policies provide the unique benefit of providing those who would like the ability to participate in stock market gains but have the security of knowing that their cash value can not earn less than the guaranteed credited rate. In other words, the policy has a minimum floor which the cash value can not go below, yet the opportunity to earn or participate in some of the market gains.

As with all Universal Life Insurance policies, EIUL policies also provide flexible premiums, lifetime coverage, and tax deferred growth of the assets inside of the policy.

Variable Universal Life Insurance
Variable Universal Life Insurance provides death benefits and cash values that vary with the performance of a portfolio of underlying investment options offering different degrees of risk and reward: stocks, bonds, combinations of both, or a fixed account that guarantees interest and principal.

This type of insurance is for people who are willing to assume investment risk to try to achieve greater returns. VUL is typically a policy that is used in scenarios where policyholders have discretionary income that they want to utilize in a financial vehicle that provides the unique tax benefits of a life insurance policy, unlimited contribution amounts, and the ability to participate in the stock market.

For more information or a customized quote, contact a life specialist at 1.800.396.5993 or email us at