PERMANENT LIFE INSURANCE
PERMANENT LIFE INSURANCE
Because your policy offers life-long protection, you’ll have peace of mind knowing your loved ones will be financially secure when you die.
A portion of your premium payments may go to a cash value account that builds over time. Cash value refers to the amount you can receive if you cancel your permanent life insurance policy. Since this money is tax-deferred, it’s not taxed until it is accessed by you or your beneficiaries.
Once your cash value has reached a particular amount, you can borrow money from your insurance company using it as collateral. Policy loans typically do not require a credit check or show up on your credit report like a bank loan. You will also enjoy lower interest rates compared to rates on personal loans or credit cards. Of course, if you don’t repay the loan, the insurance company will take it from the cash value of your policy or deduct it when the death benefit is paid out.
When considering the various types of permanent life insurance, keep in mind the premium schedule, death benefit options, and investment component. Some selections include:
| Term Life | Permanent Life | |
|---|---|---|
| Length of Coverage | Choose the term that works for you (10, 15, 20, or 30 years) | Lasts your lifetime—as long as you continue your payments |
| Premiums | 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 |
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.
Since permanent insurance is more expensive than term insurance, it’s often a better fit for families with higher incomes and protection needs. Most important, however, it provides lifetime coverage and an added level of certainty.
Whole life insurance is just one type of permanent life insurance. While all whole life insurance policies are permanent, not all permanent life insurance policies are considered whole life.
No, your monthly payments will stay the same throughout your entire lifetime. You can choose to pay more or less each year if you have a universal life policy, but your minimum and maximum premium payments will stay fixed.
Your policy’s face value — also known as a death benefit — is the amount of money your insurer will pay out to your beneficiary after your death.
On the other hand, your policy’s cash value is a portion of your premium that has gone into a separate cash fund. The cash fund will accumulate interest throughout your policy’s lifetime, and it will be given to you if you surrender your policy before your death. However, your beneficiaries will only receive the death benefit; they won’t receive any of your accumulated cash value after you die — it will stay with the insurance company.
A policy reaches its maturity date when its cash value, or the amount you have paid into the policy, matches the specified death benefit. Upon reaching your policy’s maturity date, your insurer will pay you a set sum of money, and your coverage will terminate. Most insurers structure their policies to mature when you turn 100 years old, but some even go to 120 years.
You can push back the maturity date by reducing your cash value, which you can do by taking out a loan against the policy. Your cash value will be reduced by the amount you take out plus any associated fees. Then, your maturity date will extend as long as it takes for you to pay the money back.
If you want to push your maturity date forward, you can potentially add extra money into the cash value account or cancel your policy.
Maybe you need both lifelong coverage and extra coverage for a certain period in your life. In this case, you can choose from several options to combine term and permanent life insurance:
A permanent life insurance policy usually requires a medical exam. The insurance company covers the cost of this health check which often includes your weight, height and medical history. A health professional may also take blood and urine samples. Based on your results, the insurer may adjust your permanent life insurance quote.
While most permanent life insurance policies require a medical exam, final expense policies often don’t. Final expense policies are typically used to cover costs such as medical bills, outstanding debts, or funeral expenses.
When you partner with eFinancial, we make this process simple. We’ll work with you to schedule your medical exam and answer any questions along the way. If you’d like to learn more about how to get a permanent life insurance policy, call 866-580-0290 or submit a form to speak with one of our compassionate agents today.
Some insurers allow you to convert term life insurance to a permanent policy. However, conversion may only be available during the first few years of policy ownership or before you reach a certain age. Therefore, it’s best to contact your life insurance provider directly to determine if your policy is convertible. If you’re currently in a non-convertible term policy, eFinancial can help you find the right permanent life insurance coverage to suit your needs.
