Permanent life insurance offers lifelong protection, savings
You want to make sure that your family is taken care of and that your assets are protected when you can no longer be there, and a good way to do that is to get a life insurance policy. If you want that coverage to be permanent and never expire, then you will want to buy a permanent life insurance policy.
What is it?
A permanent policy for life insurance is a policy that stays in force as long as you are alive and continue to pay the premium costs. The policy also comes with a savings and investment component that allows you to accrue a cash value that can be borrowed against or cashed out in some situations.
Who is it for?
A permanent policy is a good idea for people who want life insurance for the duration of their lives. Because of its cash value component, permanent life also can be a good idea for people who are trying to diversify their investments for retirement and estate planning purposes.
How does it work?
A permanent life insurance policy will pay out to beneficiaries when the insured passes away, no matter when that is. The premiums that are paid for the policy go both to cover the death benefit and to fund the cash value of the policy, which grows over time.
Types
There are two main types of permanent policies: whole life and universal life. The main difference between the two is in how the cash value portion works. A whole life policy offers you a guaranteed rate of growth for your cash value, similar to a savings account. A universal life policy, on the other hand, may offer you a variable rate that is based on a market index.
Major benefits
There are two main benefits to having permanent life insurance. One is the guaranteed death benefit that stays in force as long as you pay the premiums. The other is the cash value that accrues in your policies, which you can cash out or take a loan against at some point.