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Benefits of permanent life insurance
Permanent universal life insurance lasts for the rest of your life. These policies also typically act as an investment vehicle — as you pay your premium, your plan accrues a “cash value” that you can borrow against or pull money out of.
- updated last on April 11, 2023
Definition of a permanent life insurance policy
Permanent life insurance is just an umbrella term used for life insurance policies that don’t expire. For the most part, permanent life insurance combines a death benefit with a savings portion.
There are two primary types of permanent life insurance. Whole life and universal life, whole life insurance offers coverage for a insured’s entire lifetime, and its savings component can grow at a guaranteed rate. Universal life insurance also provides a savings element in addition to a death benefit, but it features different types of premium structures and earns based on market performance.
What are the benefits of permanent life insurance?
Permanent life insurance pros and cons. Permanent life insurance offers several benefits, including lifelong coverage, a savings component that can grow tax-deferred, and the ability to borrow against the policy’s cash value. It can also provide a source of income in retirement or be used to pay for final expenses.
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Permanent life insurance vs whole life
There are several types of permanent life insurance policies. The primary differences between these policies have to do with how premiums are paid and how the cash value grows over time.
Permanent Life Policy | Premiums | Cash Value Growth |
|---|---|---|
| Whole Life Insurance | Level for length of policy. | Grows at a guaranteed rate. |
| Universal Life Insurance | Maximum and minimum premiums are set, but you can pay any amount between these. You can also pay premiums by using the policy’s cash value. | Grows based upon performance of the market, though there’s a guaranteed minimum annual return. |
| Variable Life Insurance | Premiums can be level or vary, depending on the policy. | You choose how to invest the cash value from a set of options which are similar to mutual funds. |
| Indexed Universal Life Insurance | Maximum and minimum premiums are set, but you can pay any amount between these. You can also pay premiums using the policy’s cash value. | Grows based upon the performance of an index, such as the S&P 500, though there are caps on annual returns. There’s also a guaranteed minimum annual return. |
| Variable Universal Life Insurance | Maximum and minimum premiums are set, but you can pay any amount between these. You can pay premiums using the policy’s cash value. | You choose how to invest the cash value from a set of options which are similar to mutual funds. |
| Guaranteed Universal Life Insurance | Level for length of policy. | Typically little to no cash value component. |
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Permanent life insurance quotes online
Should the unexpected happen, life insurance is a great way to ensure your loved ones are financially secure, but sorting through all the options, prices, and the fine print can be a daunting task. At Coach B. Insurance, we will ask the right questions and get to know your situation a little better.
This will help us learn more about what coverage you’re looking for and provide free life insurance quotes from multiple trusted companies in just minutes with our quote and apply platform. Since we are a virtual online agency, we can also answer any questions you have through a zoom meeting or phone. It’s your choice.
This will help us match you with the right company for your lifestyle or health condition. After 30 years in the business, we have found this is the best way to find opportunities to try and save you some money.
Getting your free life insurance quote online is as easy as connecting with Coach B. Insurance. We’ve helped thousands of families find the right life insurance for their needs for 30 years. We’ll start the process by asking you for some personal information to find the right coverage for you for underwriting purposes. The more information we know before we start, the more accurate your quote will be.
When you are ready to start shopping for a free life insurance policy quote, be prepared to provide:
- Your personal information (gender, age, height, weight, etc.)
- Some essential health and medical information (tobacco usage, driving history, health conditions, hobbies, etc.)
- Family health history
- If you have previous or current coverage
- Contact information
Even if you’re not sure about your answers, we can help determine the best life insurance policy for your particular situation and find you the right coverage with the suitable carrier at the right price.
Permanent life insurance rates
Life insurance policies vary depending on your health, age, type of policy, and coverage amount.
Universal or Whole Life Insurance Rates by Age
| Death Benefit | Death Benefit | |
| Age | $25,000 | $50,000 |
| 69 | $78 | $158 |
| 70 | $84 | $164 |
| 71 | $90 | $174 |
| 72 | $94 | $183 |
| 73 | $101 | $195 |
| 74 | $106 | $207 |
| 75 | $112 | $220 |
| 76 | $119 | $233 |
| 77 | $128 | $251 |
| 78 | $137 | $270 |
| 79 | $147 | $290 |
| 80 | $160 | $319 |
*The universal life insurance or whole life insurance rates by age chart represents the average cost of whole life insurance for males age 70 – 80, with guaranteed coverage lasting until age 100. Example rates only and subject to change
Benefits of permanent life insurance reviews
There are just two main types of life insurance for those seeking some financial security in case of untimely death: term and permanent. The truth is, however, according to some permanent life insurance reviews they suggest most people don’t need a permanent life insurance policy.
A 2020 Insurance Barometer Study by LIMRA, a life insurance trade group, found that 51% of policyholders only have permanent coverage, while 33% have term coverage. This study would suggest otherwise to those permanent life insurance reviews. You might automatically assume permanent life insurance is the better life policy choice because it never expires if the premiums are paid on time. That could be why most buyers end up with a permanent policy.
Don’t get swayed by those numbers if you’re planning on buying for yourself. Term life insurance for younger, healthier people is more affordable and less complex than permanent life insurance.
There are just some situations where the benefits of permanent life insurance is the right choice. But those cases are few, usually medical issues compared with the typical need for life insurance.
Permanent life insurance vs term
There are two overarching types of life insurance: permanent life and term life.
The more common type of policy is term life. Although, more people have been buying new permanent life insurance policies than term life in recent years. COVID-19 has caused many Americans to rethink life insurance, and insurance companies have increased whole life policies.
One significant difference between the two policies is that permanent is for life. The term is only for a specific number of years.
You can purchase a term life policy for 10, 20, 25, 30, and 40 years. Term life is usually the cheaper of the two and pays out more. That’s because term life is considered a lower risk to the insurance company.
As long your premiums are paid, the insurer must pay out your life insurance death benefit. There’s no guarantee that an insurer will have to pay out on a term life policy. There’s a good chance you could outlive your term life policy.
Spencer Barclay, founder, and CEO of Saveology, said “Most people think first and foremost about price and affordability when deciding between term life and permanent life policies, but there are more important considerations like understandability, suitability, and sustainability. Do you understand the products you are considering? Are they the right fit for you? And will you be able to continue to pay for them or fund them?”
Ricardo Flores, a financial advisor at The Product Analyst, said both insurance policies could benefit you. “However, you must decide on what type fits your interest more. Suppose you are interested only in insurance that helps your loved one after death. In that case, term insurance will be the best option since it’s mainly focused on giving your beneficiaries the appropriate amount declared in your policy in case of death.
“However, if you are more inclined to death benefits with a savings element, availing of a permanent insurance plan is what suits you best. This cash fund value can be utilized for home expenses, college education, or converted into a retirement fund as well,” he said.
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Frequently Asked Questions
Is permanent life insurance a good investment?
A supper benefit of permanent life insurance is the cash value, such as whole life insurance, which can be used as an investment vehicle. But for most people, there are better strategies than this.
What is permanent life insurance coverage?
Permanent life insurance is a type of life insurance policy that doesn't expire as long as you continue to pay the premiums. It's designed to last for your entire life, so you have a guaranteed way to leave behind financial support for those you choose
How permanent life insurance works?
A permanent life insurance policy is designed to last your entire life, from when you buy it until you die or stop making payments. Most permanent policies today "mature" when the policyholder reaches the age of 121. At that point, the procedure ends, and the life insurance company pays out the death benefit.
Why is permanent life insurance worth it?
One of the great benefits of permanent life insurance is folks want life insurance no matter when they die. For example, if you provide financial security to dependents or fund a trust for heirs. Term life is good for financial goals with a known end. For example, to pay off a mortgage or cover the years until you retire.
About Coach B.
After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.
In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.
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