Permanent Insurance is life insurance protection where the coverage sticks with you for life. In the majority of cases the premiums (monthly payments) remain level or the same for the life of the policy, and depending on the product chosen, the insurance policy can include features like a guaranteed cash value and paid-up value. The real advantage with permanent insurance is that as long as you stick with the policy, it’s a no lose situation, meaning your coverage will stay with you for life, and you don’t have to worry about increasing premiums or redoing your medicals. You are paying up now to take advantage of all the perks later.
Advantages to Permanent Life Insurance
- Permanent Life Insurance can be paid up sooner, and it will stick with you for life.
- Permanent Life Insurance can have guaranteed cash values that can be accessed by way of a collateral loan or as cash value if you cancel your policy.
- Permanent Insurance stays with you for life at a level cost, meaning you pay the same monthly premiums for the life of the policy.
- Permanent Insurance means no worries about rates changing.
- Permanent Insurance means you will keep insurance even when you are sick.
- Permanent Insurance coverage, such as Whole Life Insurance, has all the guarantees.
Disadvantages to Permanent Life Insurance
- Permanent Insurance is expensive.
- Permanent Insurance in the form of Universal Life Insurance can be misleading.
Types of Permanent Insurance
Whole Life Insurance – You have a guaranteed monthly premium, a guaranteed paid up value, a guaranteed cash value, and in many cases a guaranteed pay period. My favourite product, the 20-Pay is a whole life product. Ask me about it!
Universal Life Insurance – With universal life insurance, you have the option of increasing or decreasing monthly investment contributions, this type of permanent insurance is flexible.