It’s not only permanent, but it’s a cash value policy.
That means you can borrow against the policy to cover qualified expenses now, and if you keep up with premiums, down the road it could provide a payout to help fund retirement.
What is Permanent Life Insurance?
Permanent life insurance is a policy that has no expiration date and no cash value. You pay a premium, which is like the cost of car insurance or health insurance, in exchange for coverage of your entire life.
The premiums are set to cover the mortality risk associated with you living until your expected death age. This means that as you get older, your premiums will increase because it’s more likely that you’ll die sooner.
The amount of coverage you have can vary depending on your age, health status and other factors. You can also choose to increase or decrease the amount of coverage at any time without having to purchase a new policy. This flexibility makes permanent life insurance an appealing option for many people who want protection for their families should something unexpected happen.
Why do I need it?
Permanent life insurance is an important financial tool because it can help protect your family’s future. It provides a way for you to save for retirement or your children’s education, as well as leave behind a legacy for loved ones.
Benefits of Permanent Life Insurance
Death Benefit Protection
The death benefit provides financial security to your beneficiaries in the event of your death. This can help ensure that your loved ones are financially protected and able to maintain their standard of living.
Cash Value Accumulation
Permanent life insurance policies, such as whole life or universal life, often have a cash value component that grows over time. This cash value can be borrowed against, surrendered for its cash value, or used to pay premiums.
Estate Planning Tool
Permanent life insurance can be an effective estate planning tool as the death benefit is generally paid out tax-free to your beneficiaries. Additionally, the cash value of a permanent life insurance policy can be used to help pay for estate taxes or other expenses, allowing your beneficiaries to keep more of your estate.
What are the different kinds of permanent life insurance?
When it comes to selecting a permanent life insurance policy, it’s important to weigh several key factors such as the premium payment plan, death benefit alternatives, and investment opportunities. Among the options to choose from are:
Whole life insurance: This type of policy has a fixed premium and death benefit that will remain unchanged for the duration of the policy. A portion of your premium payments will be allocated to a cash savings account, which you can access to pay future premiums or for other purposes.
Universal life insurance: This type of policy allows for greater flexibility, with the insurance company setting minimum and maximum premium amounts. This means you can pay more when you have extra funds and less when you’re facing financial constraints. The cash value of the policy grows based on market performance.
Get Permanent Life Insurance from Independent Insurance Agent Today!
At Independent Insurance Agent, and our team is dedicated to helping you select the ideal Permanent Life Insurance in Las Vegas, NV from top-notch providers.
We’ll work closely with you to navigate the various types of permanent life insurance, including those with the option of customizing through riders. These riders can be added to your policy to align with your specific requirements.
Our team provides unparalleled support, offering a personalized touch throughout the entire process, from scheduling your medical exam to the final policy selection. Our goal is to help secure your family’s financial well-being for years to come.
Permanent Life Insurance - FAQs
Permanent Life Insurance is a type of life insurance policy that provides coverage for your entire life as long as you pay your premiums. Unlike Term Life Insurance, which only provides coverage for a specific period of time, Permanent Life Insurance includes a cash value component that grows over time.
The cash value component of a Permanent Life Insurance policy grows over time and can be accessed through policy loans or withdrawals. However, borrowing against the cash value may reduce the death benefit and result in tax consequences.
Several types of Permanent Life Insurance policies exist, including Whole Life, Universal Life, and Variable Life. The right policy for you will depend on your circumstances and financial goals. Working with an independent life insurance agent can help you select the best policy for your needs.
To ensure that your beneficiaries receive the full benefit of your Permanent Life Insurance policy after your death, keep your policy up to date, review your coverage regularly, and name your beneficiaries clearly in your policy.
Your age, health, and lifestyle habits can affect your ability to obtain a Permanent Life Insurance policy and may impact the cost of your premiums. Working with an independent life insurance agent can help you find the right policy at an affordable price.
Yes, many Term Life Insurance policies offer the option to convert to a Permanent Life Insurance policy without undergoing a medical exam or providing proof of insurability. However, the conversion must typically occur within a certain timeframe, and the cost of the Permanent Life Insurance policy may be higher than the original Term policy.
Permanent Life Insurance policies that include a cash value component can be used to supplement retirement income through policy loans or withdrawals. However, it’s important to note that borrowing against the cash value could reduce the death benefit and result in tax consequences. Additionally, the cash value may take several years to accumulate enough to provide a meaningful source of income. It’s always a good idea to consult with a financial advisor before using life insurance as a retirement planning tool.