Permanent Life Insurance is a type of life insurance policy that provides coverage for the entire lifetime of the insured individual, as long as premiums are paid as specified in the policy. Unlike term life insurance, which provides coverage for a specific period (such as 10, 20, or 30 years), permanent life insurance policies offer lifelong protection and typically include a savings or investment component that accumulates cash value over time.
Key features of permanent life insurance include:
- Lifetime Coverage: Permanent life insurance provides coverage for the insured’s entire lifetime, regardless of when death occurs, as long as premiums are paid as specified in the policy. This ensures that beneficiaries will receive a death benefit payout upon the insured’s death, whenever it may occur.
- Cash Value Accumulation: Permanent life insurance policies include a cash value component that accumulates over time. A portion of each premium payment is allocated to the cash value, which grows tax-deferred at a guaranteed or variable interest rate, depending on the type of policy. Policyholders can access the cash value through policy loans or withdrawals, which can be used for various purposes such as supplementing retirement income, paying premiums, or covering unexpected expenses.
- Premiums: Premiums for permanent life insurance policies are typically higher than those for term life insurance due to the lifelong coverage and cash value accumulation feature. Premiums can be structured as level (fixed) premiums, where the amount remains constant throughout the policy’s duration, or flexible premiums, which allow policyholders to adjust premium payments within certain limits.
- Death Benefit: Permanent life insurance policies provide a death benefit to beneficiaries upon the insured’s death. The death benefit is typically paid out tax-free and can be used to cover funeral expenses, replace lost income, settle debts, provide financial security for dependents, or fulfill other financial obligations.
- Policy Options: There are several types of permanent life insurance policies, including whole life insurance, universal life insurance, and variable life insurance. Each type offers different features, benefits, and investment options, allowing policyholders to choose a policy that aligns with their financial goals, risk tolerance, and investment preferences.
- Guarantees: Permanent life insurance policies often include guaranteed features, such as guaranteed death benefits, guaranteed cash value growth, and guaranteed premium payments. These guarantees provide policyholders with financial security and peace of mind, knowing that their coverage and investments are protected against certain risks.
Overall, permanent life insurance offers lifelong protection, cash value accumulation, and financial flexibility, making it a valuable tool for individuals and families seeking to provide financial security and legacy planning for future generations. By understanding the features and benefits of permanent life insurance, individuals can make informed decisions about their insurance needs and long-term financial goals.
Don’t hesitate to contact Murphy Insurance at 800 222 8711 or submit an inquiry via our Contact Us form to learn about our Life Insurance.
