Creating a safety net.
Permanent life insurance: Why it makes sense.
- Reason #1: Protection for your loved ones
The primary purpose of permanent life insurance is to protect your family in the event of your death. Your beneficiaries will receive a death benefit as long as your premiums were paid and the policy remains in effect—and, generally, the death benefit they receive is income tax-free. Also, permanent insurance builds equity in the form of cash value, which you can use during your life.
- Reason #2: Living benefits
The cash value accumulation of permanent insurance is commonly referred to as a living benefit of owning permanent insurance because you can enjoy it during your lifetime. Cash value can be borrowed against, generally tax-free, via a policy loan, and can be used for virtually anything from funding a childs college education to supplementing your retirement income. It can be particularly useful in retirement when your need for the full death benefit declines. If youre a business owner, the cash value of permanent life insurance can be borrowed against to ensure the continuation of the business you’ve worked hard to build. The fine print of policy loans: Policy loans accrue interest at the current rate. Loans and withdrawals will decrease the available death benefit and cash value.
- Reason #3: Dividends
Who doesn’t like getting help paying their premiums or getting cash back? Since we are a mutual company, some of our permanent life insurance policies are eligible to receive dividends when they are declared by our board of directors. Dividends can be used to help pay premiums, purchase additional insurance or you can opt for cash. Of course, dividends arent guaranteed and they arent an estimate of future results.
- Reason #4: Options for your lifestyle
One size fits all doesn’t fit you. We understand and thats why we offer a range of permanent life insurance products, which you can customize to suit your unique needs. For example, some policies offer optional riders (some at additional cost) to help ensure that your coverage continues if you become disabled and unable to pay your premium. Thats why permanent life insurance can be your personal “safety net” against life’s uncertainties.
- Reason #5: Time is money
When it comes to purchasing a permanent insurance policy, there is a cost to waiting. Life insurance premium rates are based in part on age, which means any new coverage will cost more the longer you wait. Thats why it is wise to put a permanent policy in place early to lock in a cost-effective rate.