There are several types of permanent insurance, however, they all have the following characteristics in common:
- they have a cash value.
- they still provide a death benefit.
- they last throughout a person’s life, for as long as premiums are paid.
- they can be used for wealth management, estate planning, etc.
- there are numerous options available to suit a person’s needs, and each insurance company differs in their options and plan types.
Whole life policies stretch the cost of insurance out over a long period of time, thereby minimizing the increasing insurance cost. The premiums can be spread out over your lifetime, or up until a certain age.
Earnings are tax-deferred, and the death benefit is level (i.e. never decreases).
With universal life you can usually reduce or increase the amount of your death benefit, and in addition the cash value tends to increase in a non-linear fashion, depending on how your money is invested.
Universal life tends to be a better choice for wealth management and estate planning, since there are many options available to people.
Quotes and Enrolment
Permanent life is more complicated then term life, and we highly recommend contacting us for assistance when getting quotes and purchasing whole life insurance.