Understanding Permanent Life Insurance
Unlike term life insurance, permanent life insurance expires when the policyholder passes away. Permanent insurance accumulates a cash value over time, allowing you to use it for retirement, borrow against it tax-free, or for other personal endeavors like education. Due to the immense financial advantages you can get with permanent life insurance, the premiums can be initially higher than term life insurance.
At B2 Insurance, we are connected with over 30 of the best insurance companies across the nation and the South Bay, ensuring you get the best life insurance policy at the best price. Don’t leave the future of you and your loved ones to chance.
Benefits of Permanent Life Insurance
The advantages of permanent life insurance are many. There are many benefits under this type of life insurance policy to consider, including:
Thinking about what will happen to your loved ones, your estate, or your business after you are gone can be overwhelming and emotional. This can make it difficult to make the right choice for your future. By letting our expert team of insurance brokers assist you in finding the best permanent life insurance policy for your family, you can have the peace of mind that you deserve. Let our experts match you with the best life insurance plan for your family today.
Are there Different Types of Permanent Life Insurance?
Yes. There are four main types of life insurance, including:
Whole Life – Whole life insurance will pay your beneficiary or beneficiaries a designated amount of money upon your passing. Whole term life insurance provides coverage for a specific period of time, whole life insurance pays its face amount as long as the premiums have been paid. Simply put, once whole life insurance has been purchased, it is not cancelled, reduced or revoked unless the insured does not pay.
Universal Life – As opposed to term life insurance, which expires after a certain period of time, universal life insurance expires when the policyholder passes away. Since universal life insurance allows for flexible premium payments, as your life changes, your insurance policy can adapt to your changing needs. The accumulated cash value is accessible at any time with no penalties and it is tax-free.
Variable Life – With variable life insurance, you will get a combination of death benefits, along with a savings account to invest in. Variable life insurance is also a cash value account that allows you to invest in a number of sub accounts available within your exact policy. In some cases, you can invest in upwards of 50 different options.
Indexed Universal Life – With indexed life insurance, you will have the opportunity to allocate cash amounts to a fixed account or and equity indexed account. With indexed universal life, you will have a wide variety of investment options to choose from, allowing you to largely grow your money.
Why should I buy permanent life insurance?
If you have a large estate and anticipate having to pay federal estate taxes, permanent insurance is a good investment. Permanent insurance protects your valuable assets. With permanent insurance, you are not subject to current federal income tax on the growth of your cash value. You are given access to your cash value on a tax-free basis, which means you pay no federal income tax on the cash borrowed from the policy. Your beneficiaries receive the benefits of your policy with no deductions or withholdings and all tax-free.
When is the best time to buy permanent life insurance?
One of the best times to buy life insurance is when you are young. The younger you are, the lower your prices will be. Not only will your life insurance be more affordable at this time, but it can also be used as a way to create financial security for yourself in your retirement years.