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Permanent Life Insurance
What is Permanent Life Insurance?
Permanent life insurance is different from term insurance in several different ways. While term insurance provides protection only for specific period of time, permanent insurance can provide protection for your entire lifetime, or in certain instances, up to a specific age, at which point the insurer will pay the policy owner the cash value - money that you can borrow against and, in some instances, withdraw to help meet future goals, such as paying for a child's college education. You will usually have to wait a period of time after the purchase of your policy for sufficient cash value to accumulate for you to borrow against. If the unpaid interest on your loan plus your outstanding loan balance exceeds the amount of your policy's cash value, your policy and all coverage will terminate.
Who needs it?
People who...
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May need life insurance for a long term.
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May be interested in accumulating policy cash value to provide funds for education, retirement or other future goals.
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Want to take advantage of the tax-favored treatment of cash value life insurance policies.
Benefits Provided:
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Over time, permanent insurance may be more economical than term insurance since premiums do not increase with age and the policy can build a cash value.
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Earnings, and certain withdrawals and loans, may qualify for tax-favored treatment.
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Policy loans and withdrawals provide access to your cash value.
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If you cancel the policy, the accumulated cash value is yours to use as you wish. Surrender charges and taxes may apply.
Some disadvantages to consider:
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Permanent insurance is initially more expensive than term insurance.
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Loans, withdrawals, and any unpaid loan interest generally reduce the death benefit, which could leave beneficiaries inadequately protected.
If you have any questions or want more information on Permanent Life Insurance call (800)968-6921 to speak with one of our friendly Benefit Advisors or if you prefer we will Contact You.
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