Permanent Life Insurance stays in force for the insured’s entire life unless and until the policyholder surrenders the policy or stops paying premiums. The permanent life policies are typically more expensive than term insurance.
Whole life insurance is a type of permanent life insurance that accumulates cash value. Cash-value life insurance allows the policyholder to use the cash value for many purposes, such as a source of loans or cash or to pay policy premiums.
Universal Life (UL) is a type of permanent life insurance with a cash value component that earns interest. Universal life policy has flexible premiums. Unlike term and whole life, the premiums can be adjusted over time and designed with a level death benefit or an increasing death benefit.
Indexed universal (IUL) is a type of universal life insurance allowing the policyholder to earn a fixed or equity indexed rate of return on the cash value component.
Variable Universal Insurance allows the policyholder to invest the policy’s cash value in an available separate account. It also has flexible premiums and can be designed with a level death benefit or an increasing death benefit.
- Driving record (good drivers save on premiums)
- Policies can supplement retirement savings. Permanent life policies such as whole, universal, and variable life insurance can offer cash value in addition to death benefits, which can augment other savings in retirement.