Are you looking to find a life insurance policy that will last your entire life?
Permanent life insurance may be the answer for you. As I mentioned in my last article, What is Term Life Insurance, some people recommend only getting Term Life Insurance, while other’s recommend only permanent types of coverage. In my experience, both types can be good depending on individual circumstances. Let’s talk more about what permanent life insurance is, when to use it, and how it may benefit your family.
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What is Permanent Life Insurance?
Put simply, permanent life insurance is coverage that is designed to last forever. There are three main types of permanent coverage we specialize in here at Eagle Vision Financial. They are Whole Life, Universal Life, and Indexed Universal Life.
What is the difference between Term and Permanent Life Insurance?
- Overall Premium Cost
Permanent life insurance tends to cost more per month because it is designed to cover you for your entire life. Essentially, when you purchase a permanent policy, you are wanting it to remain in force until you die. Therefore a check will be written to your family, or beneficiary, eventually, where term only pays in the event you die within the timeframe you have taken out the policy.
2. Cash Account
Permanent policies offer you the opportunity to grow a cash account alongside them. In these cases, you can access the money from the cash account while you are living, and keep the policy in force.
Maximizing Your Value
Want to know how to maximize your value with your permanent policy?
Some plans offer you the opportunity to pay more per month in premiums than the cost of the insurance itself.
Why pay more than what is necessary? The additional amount of money you put into your policy, over the required amount, goes into the cash account of the policy. It will then make interest which grows tax deferred. This means you don’t have to pay taxes on the money in the cash account every year. Another benefit, is this also allows you access to the money in the cash account tax free.
My wife and I, and our three kids each have a policy that is set up this way. I love seeing the money accumulate year after year, and the growth for each policy has been better than my savings account at the bank.
Permanent life insurance is a great option for people who take advantage of the benefits it has to offer.
Due to the nature of these permanent policies, you will want to have them reviewed each year. If you have questions, or would like to see how these types of policies could benefit your family best, we are here to help.
Mark Womack
904-568-5048
EagleVisionFinancial.com