What Is Permanent Life Insurance?
Permanent life insurance offers lifelong coverage, making it ideal for individuals whose financial responsibilities, such as estate planning or long-term dependents, may not have a defined end date. Here are some key features of permanent life insurance:
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1. Lifetime Coverage: Provides coverage for your entire life, as long as premiums are paid.
2. Cash Value Component: Part of the premium goes into a cash value account, which grows over time and can be borrowed against or withdrawn. Withdrawals, loans or cancelling the policy can have tax consequences.
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3. Premium Stability: Premiums generally remain constant throughout the life of the policy.
4. Potential Dividends: Some permanent policies may pay dividends, depending on the insurer's performance. Dividends are not guaranteed.
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Permanent insurance is often used to cover final expenses, pay taxes owing at death, leave a legacy or fund a business succession plan. It costs more than term for the same coverage, so many families combine the two. Book a free call and Matt will show you how the options compare, working alongside your accountant or lawyer where needed.
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