Permanent Life Insurance
It's time to stop thinking about economic uncertainty and start embracing long-term predictability. You can start building a better financial future with permanent life insurance:
- Provides protection to last as long as you need it to, perhaps a lifetime.
- Helps ensure a child or grandchild can attend the college of their choice.
- Accumulates money to supplement your retirement income.
Permanent Life Insurance Overview
Permanent life insurance (sometimes referred to as whole life insurance) provides protection for your entire lifetime in most cases.
No matter when you die, as long as your premiums are paid, your beneficiaries will receive the proceeds, generally income tax free. Permanent life insurance is intended to meet long-term needs and has level premiums and a cash value that grows tax deferred.
Permanent life insurance policies are eligible for annual dividends which can be added to your cash value and also grow tax deferred.
Dividends can be used to:
- Reduce your out-of-pocket premium payments.
- Increase your total death benefit which keeps your coverage growing as your needs increase, without increasing your premium.
Permanent life insurance works best when the insurance need is long-term. With a guaranteed death benefit that will not decrease and a premium guaranteed not to increase, permanent life insurance can be less costly than term insurance.
Premiums will be higher on a permanent life insurance policy but the premiums contribute to the growth of the policy’s cash value – which can be accessed to help pay for college or to supplement a retirement income.
Permanent life insurance is flexible and gives you a series of options that can be changed as your life changes. You could even choose to stop paying premiums and change your policy to paid-up. Permanent life insurance allows you to make choices that fit best with your life.
When to Use Permanent Life Insurance
- You want protection to last as long as you need it, perhaps a lifetime.
- When you want a good foundation of traditional insurance.
- You can commit to paying an ongoing level premium.
- Strong policy guarantees.
- Build cash values with a conservative approach.
- Eligible for dividends.
- Option to change your policy to “paid-up.”