Permanent Life Insurance

Whole Life Insurance

Whole life insurance is the most common type of permanent life insurance. It offers guaranteed coverage for life and the potential for cash value growth. Whole life insurance policies typically have higher premiums than term life insurance policies, but they also offer more benefits.

The cash value of a whole life insurance policy grows at a guaranteed rate, and it may also be eligible for dividends. Dividends are paid out by the insurance company if it has performed well financially. Dividends can be used to lower premiums, increase the death benefit, or withdraw tax-free.

Whole life insurance is a good option for people who want lifetime coverage and the potential to build cash value. It can also be a good option for people who want to leave a legacy for their loved ones.

Universal Life Insurance

Universal life insurance offers more flexibility than whole life insurance. You can adjust the amount of your premiums and the death benefit, and you can access your cash value more easily. Universal life insurance policies typically have a minimum death benefit requirement, but you can purchase additional coverage if needed.

The cash value of a universal life insurance policy grows at a variable rate, which is typically tied to a market index. This means that your cash value has the potential to grow faster than the cash value of a whole life insurance policy, but it also means that you could lose money if the market declines.

Universal life insurance is a good option for people who want lifetime coverage and the flexibility to adjust their premiums and death benefit. It can also be a good option for people who want to access their cash value more easily.

Variable Life Insurance

Variable life insurance is a type of universal life insurance that invests the cash value in subaccounts that track different market indices. This gives you the potential to grow your cash value faster, but it also means that you could lose money if the market declines.

Variable life insurance policies offer the same flexibility as universal life insurance policies, but they also offer the potential for higher cash value growth. Variable life insurance is a good option for people who want lifetime coverage, the flexibility to adjust their premiums and death benefit, and the potential for higher cash value growth. However, it is important to note that variable life insurance is also the riskiest type of permanent life insurance.

Which type of permanent life insurance is right for you?

The best type of permanent life insurance for you will depend on your individual needs and financial situation. If you are looking for lifetime coverage and the potential to build cash value, then whole life insurance may be a good option for you. If you are looking for more flexibility and the potential for higher cash value growth, then universal or variable life insurance may be a good option for you.

It is important to work with a life insurance agent to help you choose the right type of permanent life insurance for your needs and budget. A life insurance agent can explain the different types of policies available and help you compare rates and coverage.