Term or Permanent Life Insurance: Which Option is Right for You?
In this guide you’ll learn:
- The basics of life insurance —in simple, easy-to-understand terms
- Top reasons you should own life insurance
- The tax benefits of life insurance
Life Insurance Living Benefits
When you think about protecting the people you love, life insurance is one way to make sure they're taken care of after you're gone. Both term and permanent life insurance provide benefits to your loved ones—to pay bills or take care of other financial obligations in the event of your death. But did you know permanent life insurance can also provide for you and your family while you’re living? Here's how. As you pay premiums, the policy builds equity—also known as cash value. This cash value, including any potential dividends, grows, tax deferred, and becomes a source of money you can access at any age, for any reason.
You can use this cash value to cover the costs of an unexpected emergency. Pay for a child's education. Supplement your retirement income. Make a down payment on a second home. Maybe even use it as the seed money to start a new business or grow an existing one. After all, the great opportunities in life often take money to get off the ground.
So if an opportunity or a need arises, you can access the cash value of your permanent life insurance policy immediately. You can take a policy loan against the cash value. Use the policy as collateral for a bank loan. Take a portion of the cash value outright. Or take all the cash value and terminate the policy.
It's a flexible financial asset you can use however you like and can count on for life. That’s because the cash value of a permanent life insurance policy increases every year, guaranteed. It will never go down in value. It also offers conservative, steady growth that's not subject to the ups and downs of the market.
But, not all companies provide the same long-term value. So when considering permanent life insurance, be sure to work with a company that understands the important role it plays in your financial security, that has paid out dividends for more than 100 years, has the highest financial strength ratings awarded to any insurer, and will be there when you and your family need it most.