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Permanent Life Insurance
A policy that protects your family while it builds cash value.
For some families, permanent life insurance checks off many financial planning boxes.
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What Is permanent life insurance?
While both term and permanent life insurance offer a guaranteed, tax-free death benefit, there are some important differences.
- Permanent life insurance offers lifelong protection. You don’t need to pick a coverage length or worry about renewal. If your premiums are up to date, your beneficiary will receive the death benefit when you die.
- Permanent life insurance also builds cash value over the life of the policy.Every time you pay your premium, a portion goes to building that tax-deferred cash value. Over time, you may be able to borrow against that value or withdraw it. Keep in mind that borrowing or withdrawing funds from your policy without repayment will reduce the cash value and death benefit.
These benefits can come at a price and with added requirements. You can expect to pay significantly higher premiums than you would with term life. And, permanent life insurance policies typically require a medical exam. So, while it may not be for everyone, permanent insurance can be a good fit for individuals looking to lock in lifelong coverage or leave a legacy to their beneficiaries.
Whole life and universal life are the most common types of permanent insurance, and each comes with unique features and benefits. Your eFinancial agent can help you understand which choice can help you meet your needs.
What are the benefits of permanent life insurance?
Lifetime coverage
Lifetime coverage
Tax-deferred cash value
Tax-deferred cash value
Potential to borrow against cash value
Potential to borrow against cash value
What are the types of permanent life insurance?
When considering the various types of permanent life insurance, keep in mind the premium schedule, death benefit options, and investment component. Some selections include:
- Whole life insurance: Your premium and death benefit will stay the same throughout the life of your policy, and a portion of premium payments will go into a cash savings account. You can access this account to pay future premiums or to use for other purposes.
- Universal life insurance: The insurance company may set minimum and maximum premium amounts so you can have greater flexibility. With this arrangement, you can pay more when you have more cash on hand and less if you’re financially strained. The cash value will grow based on market performance.
Comparing term vs permanent life
insuranceTerm Life | Permanent Life | |
---|---|---|
Length of Coverage | Choose the term that works for you (10, 15, 20, 30 years) | Lasts your lifetime—as long as you continue your payments |
Premium | Typically the most affordable life insurance | More expensive than term for same coverage amount |
Medical Exam | Options to waive exam | Typically required |
Cash Value | None | Policy may build cash value on a tax-deferred basis |
Length of Coverage
Term Life
Choose the term that works for you (10, 15, 20, 30 years)
Permanent Life
Lasts your lifetime—as long as you continue your payments
Premium
Term Life
Typically the most affordable life insurance
Permanent Life
More expensive than term for same coverage amount
Medical Exam
Term Life
Options to waive exam
Permanent Life
Typically required
Cash Value
Term Life
None
Permanent Life
Policy may build cash value on a tax-deferred basis
Permanent life insurance policies through eFinancial
eFinancial is experienced in helping consumers select permanent life insurance from top companies in the industry.
We’ll work with you to understand the different types of permanent life insurance. Many products, including permanent life policies, may also include riders. A rider amends or adds to a policy, tailoring it to your specific needs.
We offer personalized support at every step of the process, including scheduling your medical exam. We look forward to helping you secure your family’s financial future.