Advantages of Permanent Life Insurance

Is Permanent Life Insurance a Good Investment?

Is Permanent Life Insurance a Good Investment?

The basic difference between term and permanent life insurance is this: A term policy is life coverage only. In permanent life insurance policy, as long as one continues to pay the premiums, the policy does not expire for a lifetime. As the term applies, permanent life insurance provides coverage for the whole life. Permanent life insurance policies build up a cash value (usually beginning after the first year). With permanent life, you pay a fixed premium for life instead of the increasing premiums found on renewable term life insurance policies. In addition, permanent life insurance has a cash value feature that is guaranteed. In term and permanent, the full premium must be paid to keep the insurance.

Some of the advantages of a permanent life insurance policy include:

  • Interest accumulated through the investment portion of the policy is tax-free until withdrawn.
  • Irrespective of your age or health, the amount of life insurance premiums remain fixed.
  • Permanent Life Insurance can also be used to create tax-deferred savings for retirement.
  • Helps to manage ongoing, future and uncertain family expenses.
  • Helps fulfill the financial obligations of the family/dependant in case of death of the person insured.
  • Allows borrowing against the cash value.
  • The policyholder can cancel or surrender the permanent life insurance policy at any time and receive the cash value.

If you are thinking of building a cash value then yes, permanent insurance is a good investment. Speak to our agent and he will be happy to assist you in any manner whatsoever.

To compare quotes, simply click get a quote and you will be taken to a page that asks you to complete a form. If you’re unsure of how much coverage you need, or how long the term should be, click start a chat to connect with one of our knowledgeable representatives immediately. You can also send us an email or call our licensed agents at 1-800-521-7873.

Find out more about the differences between term insurance and whole life insurance and the advantages below:

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