Permanent Life Insurance

An Insider Look at Permanent Life Insurance

(aka the insurance that just won’t quit)

Andrew Bowsher | September 10, 2018
Healthy Senior Couple Exercising Together

Like it or not, death is historically batting 1,000. You can eat all healthy and bubble wrap yourself before you leave the bed, but sooner or later (hopefully much, much later) it’ll happen. So there’s really no reason you shouldn’t be prepared. That’s what life insurance is for. And if you’re young-ish, permanent life insurance may be the best-priced pick for you.

Don’t worry, our independent insurance agents know allllll about permanent life insurance and are here to make sure you do too. They’ll shop all the top life insurance providers and sort through multiple quotes to help find your best option. Pretty sweet, huh? But first, let’s talk a bit more about permanent life insurance. Or, as we call it around here,“The Big Perm.

What Is Permanent Life Insurance?

Simply put, it’s forever insurance. Unlike its popular cousin, term life insurance, which only lasts for a predetermined number of years, permanent life insurance lasts as long as you do. But it also works a bit differently than term life insurance.

Permanent life insurance policies have a cash value accumulation feature that grows over time, kinda like a savings account. In some cases, you can even borrow money against the amount you’ve accumulated.

Now, permanent life insurance can come in a number of different flavors, but the two most common are:

  • Whole life insurance
    • Tax-deferred death benefits
    • Level premiums for the policy’s life
    • Cash value accumulation
      • This will grow regardless of the company’s investment performance.
  • Universal life insurance:
    • Tax-deferred death benefits
    • Flexibility to customize your coverage
    • Options for tailoring your premiums
    • Cash value accumulation
      • You can actually earn higher interest on this when rates are high and a guaranteed minimum when they are lower.

What Does Permanent Life Insurance Cover?

Life insurance is like a fraternal twin to property insurances like auto or home. They’re made for the same purpose, but they’re just not the same. Your car insurance covers certain situations, but life insurance is just paid out to your chosen beneficiary when you cash out. See the diff?

Why Should I Buy Permanent Life Insurance?

All sorts of reasons, really. First of all, if you get a permanent policy when you’re young, it’s veeeeerrry affordable. Plus, it will last forever, unlike a term life policy that will end at some point and you won’t have any life coverage left. 

Then there’s the whole cash value accumulation side to this coin. You can watch it grow and never touch it until you’re a goner, you can borrow against it, OR you can surrender the value and cash it out entirely—that’s all up to you. Plus, your policy is non-taxable until you withdraw funds from the cash side of your policy. But, if you “borrow” a bit of money, it is NON-taxable, same as when the death benefit is paid out—NO TAXES!

In all honesty, it’s just important that you have life insurance. ANY life insurance. The type of insurance that’s right is really different for everybody. If it’s only important for about twenty years until the kids are out of the house and your mortgage is done, then a term policy might actually be better for you. Or if you’re young, want to take advantage of low premiums, and want a policy that you can just get and forget, perm may be your golden goose. 

Whatever your story, one of our independent insurance agents can help answer your questions and help you make the right call for you.

How Much Does Permanent Life Insurance Cost?

Depends, really. Three major factors go into the cost of your permanent life insurance policy:

  • How much do you need?
  • How old are you?
  • How healthy are you?

A permanent life insurance policy is way less expensive if you purchase it when you’re younger. But like your youth, the lower premiums won’t last, and they will go up as the number of candles on your birthday cake do. Now, with a whole life policy, your premiums can be “locked in” and will remain the same for the whole policy. Or, with a universal life policy, they can be altered—that’s all a part of the flexible nature of a universal policy. 

Comparing Permanent Life Insurance Quotes

Our independent insurance agents will review your needs and help evaluate the permanent life insurance option that makes the most sense for you. They’ll also compare policies and quotes from multiple insurance carriers to make sure you have the right protection in place. For you and your family.

The Priceless Benefits of an Independent Insurance Agent

Life insurance policies can be complex and searching through all the options can be confusing, time-consuming and frustrating. An independent insurance agent's role is to simplify the entire process. 

They’ll make sure you get the right coverage that meets your unique needs. Not only that, they’ll break down all the jargon and explain the nitty-gritty, so you understand exactly what you're getting. Find out more by contacting an insurance agent in your area. Article | Reviewed by Paul Martin

Now, who's ready to get their insurance problems solved?