Permanent Life Simplified

Permanent life insurance, also known as perm life, is a popular choice for many. Its key benefits include a lifetime death benefit and the ability to accumulate tax-deferred cash value, which can be accessed in the future. Similar to owning a home, permanent life insurance is often more affordable over the long term, offering a promising outlook for your financial future.

Additionally, obtaining permanent life insurance while you’re healthy and young allows you to lock into a low rate permanently.

When structured properly, permanent life insurance can accumulate cash value over time. This cash value can be a valuable resource in the future, providing a sense of security and peace of mind. It could be used to buy a home, fund your child’s college tuition, or boost your retirement income. Life is full of unexpected expenses, and having a cash value backup can be reassuring, especially for emergency expenses.

Within permanent life insurance, there are four basic categories. Generally speaking, whole life is the simplest, offering fixed premiums and a lifetime death benefit.

Other options include universal life variable, universal life, and indexed universal life, which may be tied to the market. However, investing in the market comes with the risk of market volatility and requires vigilant oversight to ensure the cash value is not depleted by market downturns. While these policies may allow you to adjust your premiums and death benefits, some returns may not be guaranteed, so it’s important to be cautious and seek personalized advice from an agent who understands your unique financial situation.

Although you can buy this type of policy online, it’s strongly recommended to do this in person with an agent. An agent can provide personalized advice based on your financial situation and goals, helping you choose the right policy and understand its features. This can be especially valuable when considering permanent life insurance, which is a long-term financial commitment.