Another Name for Permanent Life Insurance Offers Lifetime Coverage Options

There are several types of permanent life insurance, including whole life and universal life. These policies provide lifetime coverage as long as premiums are paid.

Whole life insurance, for example, guarantees a death benefit and a cash value component that grows over time. This cash value can be borrowed against or used to pay premiums.

The lifetime coverage aspect of permanent life insurance makes it an attractive option for those who want to ensure their loved ones are taken care of, no matter what.

Permanent life insurance is also known as traditional life insurance, and it's the most common type of permanent life insurance. It offers a guaranteed minimum rate of return on your cash value, death benefit amount, and fixed premium that will never go up, regardless of market conditions.

There are different types of permanent life insurance, but the most common ones are whole life insurance and universal life insurance. Whole life insurance has a guaranteed death benefit, fixed premiums, and a cash value that grows over time. It's like having a savings account that you can borrow against or use to help pay your premiums.

Universal life insurance, on the other hand, is flexible and allows you to choose how much you pay in premiums and how you invest the cash value. It's like having a customizable savings plan that you can adjust to your needs.

Here's a breakdown of the main types of permanent life insurance:

It's worth noting that whole life insurance has been around for a long time, and some companies have been paying dividends to policyholders for over a century.

Whole life insurance is a type of permanent life insurance that offers a guaranteed minimum rate of return on your cash value, death benefit amount, and fixed premium.

It's the most common type of permanent life insurance, and its simplicity is part of its appeal. A whole life policy is the simplest form of permanent life insurance, providing coverage that lasts your entire life.

One of the key benefits of whole life insurance is its guaranteed cash value component. A portion of your premium dollars are placed into a cash value account, and this sum grows over time on a tax-deferred basis.

You can borrow money against your cash value, use it to help pay your premiums, or even surrender it for cash to live on in retirement. The rules on how and when you can do this vary by company and policy.

Here are the three defining characteristics of a whole life policy:

Getting a whole life policy from a mutual company, such as Guardian, can also earn you annual dividends. You get a portion of the insurer's profits, which can be used to increase the value of your policy and provide other benefits.

Universal life insurance offers flexibility in paying premiums and investing the policy's cash value. This type of insurance is also known as adjustable life insurance.

A standard universal life insurance policy lets you choose how much you pay in premiums, as long as it falls between the minimum and maximum amounts. This flexibility can be a big plus for those who need to adjust their payments from time to time.

The cash value of a universal life insurance policy grows depending on the type of policy you buy. For example, with a guaranteed universal life policy, the cost of coverage is lower and fixed for the length of the policy.

Here are the main types of universal life insurance policies:

These options can help you tailor your universal life insurance policy to your needs and risk tolerance.

Permanent life insurance is often compared to other types of insurance, but it stands out in several ways. Its unique combination of death benefit and savings component makes it a valuable investment for those looking to cover final expenses and leave a legacy.

Term life insurance, on the other hand, provides a death benefit for a set period but does not build cash value over time. This makes it a more affordable option for those who need temporary coverage.

Whole life insurance is another type of permanent life insurance that also builds cash value over time, but it typically comes with a higher premium than permanent life insurance.