life insurance for children

Permanent Life Insurance

The benefits of permanent life insurance

Permanent life insurance is intended to pay a death benefit, or return cash-value, at some point in the future. Permanent insurance can be for obligations that are expected to never end, those being: final expense, estate tax payment, legacy creation/giving, and other reasons relating to personal finance and business planning needs.

The type of policy used for a given situation, the policy design, the fixed and variable components of the contract, and the policy’s operation throughout the years, are all crucial to achieving the outcome that was desired at the time the policy was obtained. 

Built-in flexibility of permanent life insurance

And while the needs or goals of the policy owner may change of the years, careful and thoughtful planning with an experienced life insurance professional, can illuminate the process, and possibly “build-in” flexibility and contingencies that otherwise might not have been considered if a consumer had been working with someone less experienced. Permanent policies can come with a number of features, some of which are no charge, or included, some of which are at an extra cost, but can prove valuable to the policy owner. 

Some of these might be:

  • Waiver of premium
  • Accidental Death and Dismemberment
  • Accelerated benefit
  • Long-term care coverage
  • Additional death benefit through term insurance within the permanent policy
  • Cash-value growth
  • Access to certain investments or crediting strategies for a policy’s cash-value.
  • Dividend payments to the policy owner.

Understanding all of these possible features, and relating them to the policy owner’s own circumstance, is the crucial job of the life insurance agent, and it is why every consumer who wishes to purchase a permanent life insurance policy, should seek a knowledgeable, experienced agent.

Permanent life insurance generally breaks out into two categories, whole life (also known as ordinary life) and universal life (also known as flexible premium life) These two categories are quite different from each other, but each serve a purpose that may make one generally better than the other in a given client’s circumstance. 

Within both categories, both whole life and universal life have variations, and if you are considering using permanent life insurance, you would be well advised to work with a knowledgeable, experienced agent who can thoroughly explain all the different types, and advise you on which one(s) might suit your purposes best. It cannot be overstated that permanent life insurance is a complex product and advice should only be sought from an experienced professional, because without which, you may find out you made a mistake, and years past your ability to do anything out it.

An insurance advocate is crucial to successful insurance policy development

Understanding all of these possible features, and relating them to the policy owner’s own circumstance, is the crucial job of the life insurance agent, and it is why every consumer who wishes to purchase a permanent life insurance policy, should seek a knowledgeable, experienced agent.

Permanent life insurance generally breaks out into two categories, whole life (also known as ordinary life) and universal life (also known as flexible premium life) These two categories are quite different from each other, but each serve a purpose that may make one generally better than the other in a given client’s circumstance. 

Within both categories, both whole life and universal life have variations, and if you are considering using permanent life insurance, you would be well advised to work with a knowledgeable, experienced agent who can thoroughly explain all the different types, and advise you on which one(s) might suit your purposes best. It cannot be overstated that permanent life insurance is a complex product and advice should only be sought from an experienced professional, because without which, you may find out you made a mistake, and years past your ability to do anything out it

Whole life insurance vs. universal life insurance

Permanent life insurance generally breaks out into two categories, whole life (also known as ordinary life) and universal life (also known as flexible premium life) These two categories are quite different from each other, but each serve a purpose that may make one generally better than the other in a given client’s circumstance. 

Within both categories, both whole life and universal life have variations, and if you are considering using permanent life insurance, you would be well advised to work with a knowledgeable, experienced agent who can thoroughly explain all the different types, and advise you on which one(s) might suit your purposes best. It cannot be overstated that permanent life insurance is a complex product and advice should only be sought from an experienced professional, because without which, you may find out you made a mistake, and years past your ability to do anything out it