What is Permanent Life Insurance? A lifetime of coverage, with the potential to build cash value.   Whole Life Insurance Universal Life Insurance Variable Universal Life Insurance Compare Types of Life Insurance

What is it?

Permanent insurance, including Whole Life Insurance, Universal Life Insurance and Variable Universal Life Insurance, can provide protection for your entire lifetime, or in certain instances up to a specific age—at which point the insurer pays the policy owner the cash value. Permanent life insurance policies can build a cash value—money that you can borrow against and in some instances, withdraw to help meet future goals, such as paying for a child's college education.¹

Permanent life insurance policies enjoy favorable tax treatment. Cash value generally grows on an income-tax deferred basis; that means that you pay no taxes on any earnings in the policy so long as the policy remains in force.  Withdrawals or loans against the cash value are, in many cases, tax-free.¹

Who's it for?

People who...

• May need life insurance for a long term. 
• May be interested in accumulating policy cash value to provide funds for education, retirement or other future goals. 
• Want to take advantage of the tax-favored treatment of cash value life insurance policies.

Benefits:

• Over time, permanent insurance may be more economical than term   insurance since premiums do not increase with age and the policy can build a cash value. 
• Policy loans and withdrawals provide access to your cash value.
• Earnings, and certain withdrawals and loans, may qualify for tax-favored treatment. 
• If you cancel the policy, the accumulated cash value, minus any surrender charges, is yours to use as you wish.

Things You Should Consider:

• Permanent insurance is initially more expensive than term insurance.  
• Loans, including any unpaid loan interest, and cash-value withdrawals generally reduce the death benefit, which could leave beneficiaries inadequately protected. 
• If you cancel or surrender the policy, or it lapses, you may have taxable income to the extent that the total of cash value and/or distributions or withdrawals exceed your basis in the policy.

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Circular 230 Notice: The information contained on this website is not intended to (and cannot) be used by anyone to avoid IRS penalties.  This website supports the promotion and marketing of life insurance products. You should seek advice based on your particular circumstances from an independent tax advisor.