The Benefits of Permanent Life Insurance

                                                                                                                                                                                                from Pixabay

If you’re like most people, you probably have a ton of questions when it comes to insurance. Much of that uncertainty stems from the fact that there are so many types and price points to keep track of. Even with all the options, one thing is for certain: insurance is an inevitability in today’s world. To understand why and how much insurance is cost-effective for your situation, let’s take a quick look at the benefits of permanent life insurance as well as some common misconceptions about this type of coverage.

What is Permanent Life Insurance?

People who have permanent life insurance are those who ultimately want some type of life insurance to protect their loved ones in the event of their death. There are generally two types of coverage, whole and term. Whole coverage is the most expensive and provides a certain amount of death benefit, regardless of the health of the person receiving the payout. Term insurance, on the other hand, is renewable and ends when the policyholder wants it to, without having to worry about how long they’ll live. In some cases, the policy is renewable indefinitely, but most of the time, it’s renewable for a certain period of time before it ends. The primary benefit of permanent life insurance is that it’s always there for you and your family. Because individuals can choose the amount of coverage, they can make sure that it’s there for the right amount of time. Of course, there are a few limitations to consider. If you have term insurance and you smoke, for example, you could be charged a hefty rate and receive a much smaller death benefit. Similarly, if you file for bankruptcy and suddenly require larger coverage, your rates could skyrocket.

Why is permanent life insurance a good investment?

While it’s perfectly normal to want to know the price and benefits of the best life insurance products out there, there’s no reason to rush into a decision. That’s because life insurance can actually be a great investment for many people. To understand why, let’s think about why you may want insurance in the first place. Maybe you’re worried about losing your job, or you have a large family that you’d like to support in the future. Either way, insurance can help protect you and your loved ones from financial hardship. Many life insurance companies also offer financial products that can help you achieve your goals. Investment options might include asset-based, equity-based and hybrid options, with each type offering different returns based on your needs and risk tolerance. Some companies also offer life insurance options that provide tax-free income in retirement, with funding options that allow you to choose how you receive your payout.

Types of Permanent Life Insurance

Whole Permanent Life Insurance – Whole permanent life insurance covers the costs of your funeral, cremation or burial. It also pays any outstanding debts and taxes, as well as any outstanding medical bills. Whole life insurance is generally the most expensive type of coverage, but it’s also the most comprehensive.

Term Permanent Life Insurance – Term insurance is typically renewable for a specific period of time. Once the term expires, the policy returns to the person who purchased it. You can also choose to extend the term. However, there are generally higher rates for this type of coverage, so make sure it’s right for your unique situation.

How Much Does Permanent Life Insurance Cost?

This is one of the toughest questions to answer when it comes to finding the best life insurance for you. There are a lot of variables that influence your cost. The type of insurance, where you buy it, the level of coverage you want and the amount of annual premium you choose all play a role. The good news is that you can get a good estimate of how much you’ll pay. The first thing you want to do is locate a company that offers permanent life insurance. Once you have that information, take a look at the type of coverage you’re buying and how much it costs. Then, look at the annual premium. This is where it can get tricky. While you may like the amount of coverage you’re getting, it doesn’t necessarily mean that you’re getting the best rate. Unfortunately, there’s no “one-size-fits-all” answer when it comes to figuring out the best rate for your unique situation. However, there are a few things you can do to get a better sense of what you’re paying;

– Make sure you shop around. You may be surprised to find that one company’s rates are much better than another.

– Try to break down the cost into “parts.” Consider things like the amount of coverage you want, the amount of premium and the type of insurance. This way, you can see how much each cost contributes to your total cost.

– Consider the differences. The most common types of permanent life insurance are universal (guaranteed death benefit) and term (variable death benefit). That means that some insurance companies may charge you a higher rate just because they offer a different type of coverage.

Pros of Permanent Life Insurance

No-lose scenario – Permanent life insurance is always there for your family. Your loved ones won’t have to worry about money if you pass away.

Protects financial status – With term life insurance, you may be able to transfer the policy to another person, but it won’t be the same amount of coverage. With permanent life insurance, the amount is the same and it’ll be there for your loved ones.

Does not need to be re-upped – With term insurance, you’re required to re-up your coverage every term. With permanent life insurance, you can go as long as you like.

Higher death benefit – With a higher death benefit, you have a better chance at receiving a larger death benefit at the time of your death.

Cons of Permanent Life Insurance

Higher rates – Permanent life insurance rates can be significantly higher, especially with whole life coverage. That’s because there are fewer companies offering it and the ones that do are more expensive.

Investment options – Term insurance is basically a loan and doesn’t offer any real protection. With permanent life insurance, your death benefit is protected.

Requires monthly payments – Some permanent life insurance, require you to make a monthly payment, regardless of how long you have the policy for.

Death benefit is not guaranteed – With a universal life insurance policy, your death benefit is not guaranteed. You could live to 100 and still receive nothing.

No tax-free income – With a term insurance policy, you can receive tax-free income every year in retirement. With permanent life insurance, you’ll have to wait until you’re in retirement to receive benefits.


There’s no denying that insurance is a critical part of today’s world. Permanent life insurance is a great option for those who want to ensure that their family is protected in the event of their death. It’s not an option for everyone, but it can make a huge difference for those who choose to take their coverage seriously. With these considerations in mind, you can see that there are many benefits to permanent life insurance. It’s important to understand what type of coverage you need and how much it’ll cost before you apply for coverage.