Permanent Life Insurance

Permanent Life Insurance

Permanent life insurance are life insurance policies which are guaranteed to remain in force for the insured’s entire lifetime, provided that the required premiums are paid.  Premiums are fixed and are based on the age of the insured at the time that the policy is issued, and usually do not increase with age. Normally you pay premiums until death. A permanent life policy usually has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured. The investment component accumulates a cash value that the policyholder can withdraw or borrow against.  The two main types of permanent life insurance are whole and universal life insurance policies.

Most common permanent life insurance policies:

  • Whole life insurance– one of the most common types of Permanent life insurance. Premiums on Whole life are guaranteed never to increase as long as the policy remains in force, offers guaranteed cash value accumulation, and the policy owner may borrow against the cash value of the policy.
  • Universal life insurance– allows you to tailor your insurance to meet your changing needs with flexible premiums and benefits while possibly building cash value. The policy owner may also borrow against the cash value of the policy.

Benefits of choosing permanent life insurance:

  • Guaranteed life insurance protection that will not decrease. Your beneficiaries are covered for the duration of your life. Unlike term life insurance, the policy is in force until you die, as long as you continue to pay the premiums.
  • An insurance premium that does not change, regardless of changes in your health or other circumstances.
  • Cash value that can be borrowed to take advantage of future opportunities.
  • If you’re a high-income individual, concerned about your estate or tax deferments, a whole life policy serves as an additional investment or savings vehicle.

Drawbacks of choosing whole life insurance:

  • Premiums are significantly more expensive than term insurance premiums.
  • Depending on your specific circumstances, you may not need life insurance for your entire life, meaning you could end up overspending on an unnecessary policy.

Picking the right type of life insurance is critical for you and your family, so be sure to do your research to carefully consider which will best serve your needs. The knowledgeable and experienced agents at Boizelle Insurance Partnership are ready to review your current life insurance policies and discuss the options available to you.

Contact a Boizelle Insurance professional to learn more or get a quote.