Permanent Life polices offer coverage up to life time plus tax-advantages opportunities to protect and increase your retirement savings and income and may allow you to access the benefits during your lifetime.
Permanent Life policies are often customizable and flexible. You choose the amount and frequency of the premium payments, and you select the amount and duration of your coverage, up to lifetime protection. You can access potential cash value during your lifetime for things like supplementing your retirement, paying for college, and purchasing a second home.
A quick comparison
|Universal||Indexed Universal||Variable Universal|
|Your protection goal||Protection up to a lifetime||Extended, guaranteed protection||You choose the amount and duration of your protection.|
|Your growth goal||Low: Get some growth of your cash value||Medium: Grow your cash value with some protection from market loss.||High: Aim to build wealth and access your cash value during your lifetime|
|How your cash value grows1||Interest is earned at a set rate||Interest is tied to a market index like the S&P 5002||Interest and cash value fluctuate with the market based on your investment options|
|Access to cash value||Income Tax-free3||Income Tax-free3||Income Tax-free3|
|What makes it different||
Flexibility in setting the premiums and death benefit. And duration/length of time.
Flexibility to invest in indexed accounts. You can benefit from the market’s upside while gaining protection against the downside. Options to access the cash value during your lifetime.
These policies have the greatest potential for growth. You may be able to choose where your premiums are invested.
Medical and long-term care expenses
Paying for health-related expenses, like those generated by long-term care or chronic illness, could burden your family and deplete your portfolio. You can add riders4 to your policy to build in protection for your family and portfolio.
Interested in financing your premiums?
Premiums, or the payments you make to purchase the policy, can be structured to meet your needs, allowing you to plan for expenses. Individuals and business owners who need large amounts of protection but don’t want to liquidate assets, can consider financing their premiums.
Live outside the U.S.?
Life insurance can help diversify your global portfolio.