Permanent Life Insurance

Permanent life insurance provides lifelong protection. Permanent insurance is initially more expensive than term insurance.


Permanent insurance is often referred to as cash value insurance because they can build cash value over time (money that you can borrow against and, in some instances,
withdraw to help meet future goals, such as paying for a child's college education,
as well as provide a death benefit to your beneficiaries.)


The premium and death benefit you are quoted at your policy's start remain the
same throughout the policy's life. But because your insurer will be investing your premiums, the policy may also may accumulate a cash reserve. These funds can be put to use as premiums, reinvested, or saved - it's your choice.

Permanent life insurance is distinguished from term insurance in several ways. While term insurance provides protection only for a specific initial period of time, permanent insurance can provide protection for your entire lifetime.

Permanent life insurance policies enjoy favorable tax treatment, meaning that you pay no taxes on any earnings in the policy so long as the policy remains in force.

Who's It For: People who:

1. May need life insurance for a long term.
2. May be interested in accumulating policy cash value to provide funds for
education, retirement or other future goals.
3. Want to take advantage of the tax-favored treatment of cash value.

Benefits: They are:
1. The benefit of whole life insurance is - consistency.
2. You pay the same premium from day one till you're 120.
3. The cash value portion will always be intact and earning some amount of
interest.
4. And the death benefit will never decrease (provided that you don't borrow
against it).
5. Over time, permanent insurance may be more economical than term insurance
and the policy can build a cash value.
6. Earnings from policy may qualify for tax-favored treatment.
7. If you cancel the policy, the accumulated cash value is yours to use as you
wish.