Permanent Life Insurance | 5 Facts You Need to Know

Permanent Life Insurance | 5 Facts You Need to Know

by Leslie Freeland, November 23, 2017

Permanent Life Insurance Facts | 5 Facts You Need to Know

Eight in 10 Americans put off buying the life insurance they need because they don’t understand what type of life insurance policy to buy.[1] Is this you? Do you ever ask yourself, “Should I buy Term Life Insurance?” Or do you find yourself wondering, “Should I buy Permanent Life Insurance?” Or maybe you didn’t even know there was more than one type of life insurance!

At Asurea, we know that life insurance decisions can be difficult, and that it’s not always easy to get a simple explanation. This is where we come in, to provide you with the Simple Solution to your life insurance questions.

And today’s Simple Solution is explaining the basics of Permanent Life Insurance facts.

For example, did you know that there are three different types of Permanent Life Insurance: Universal Life Insurance, Whole Life Insurance and Variable Life Insurance? Don’t worry; we’re not going to overload you with all the details of each (not today anyway!).

Just know that the following five facts typically apply to all three types of Permanent Life Insurance.

Fact #1:

Permanent Life Insurance provides you with life insurance coverage for your entire life.

Unlike Term Life Insurance (a life insurance policy that you own for a certain amount of time, such as 20 years), Permanent Life Insurance never expires. Much like renting a home, Term Life Insurance provides you with the coverage you need for as long as the length of time you select. When that time is up, your life insurance coverage ends. In contrast, a Permanent Life Insurance policy is more like buying a home. You own both your home and your Permanent Life Insurance policy – for life.

Asurea Simple Solution Tip:

  • Both Term Life Insurance and Permanent Life Insurance have their benefits. To know which one is right for you, contact Asurea today. We will go over your individual needs and show you your options.

Fact #2:

Permanent Life Insurance can’t be canceled.

Once you’ve been issued a policy and as long as you pay your premiums, your Permanent Life Insurance policy will provide you with life-long insurance protection that can’t be cancelled – regardless of your age or health. And because it won’t expire after a certain time (it’s permanent, remember!), you don’t have to worry about having to buy a new policy once the old one ends. This is important because if you did have to buy a new policy, your monthly premium may be much higher because of your age or health.

Asurea Simple Solution Tip:

  • The sooner you apply for life insurance (whether it’s Term Life Insurance or Permanent Life Insurance), the better. The longer you wait, the higher your monthly premium may be. Or if you wait too long, you may not even be able to qualify for the life insurance you want. Contact us today to avoid higher costs later.

Fact #3:

Permanent Life Insurance builds cash value.

Much like buying a house, Permanent Life Insurance builds in value over time (similar to equity in a home). This is called cash value. You build cash value when the money that you put into your policy grows (at a guaranteed interest rate) and continues to grow over the years. And there is a huge bonus. That cash value is yours to borrow for anything you like: a down payment on a home, a child’s education, or even a supplement to your income in retirement.* And, if at some point you decide to cancel the policy, any cash value growth is yours to keep!

Asurea Simple Solution Tip:

  • If you decide to borrow the cash value from your Permanent Life Insurance policy, make sure to pay it back so your family (or other beneficiaries) will receive the full amount if you pass away.

Fact #4:

Permanent Life Insurance premiums will never increase.

The premiums (the amount of money you pay each month*) that you pay for a Permanent Life Insurance policy are guaranteed to never increase! The price you pay today is what you’ll continue to pay for as long as you maintain your policy.

Asurea Simple Solution Tip:

  • If you cancel your Permanent Life Insurance policy then change your mind and get a new one later, expect to pay more. If you want to make any changes to your current policy, don’t do anything until you contact Asurea first. We’ll make sure you don’t pay more than you have to.

Fact #5:

Permanent Life Insurance payments may be skipped.

If at any time you would like to skip a payment, you may be able to use the cash value in your policy to cover your premium for that month – provided you have enough available cash value. The flexibility of a Permanent Life Insurance policy gives you the security of knowing your policy won’t lapse if you find yourself in a tight spot.

Asurea Simple Solution Tip:

  • It’s best if you learn how much cash value you have before you choose to skip a payment.

Understanding life insurance can be complicated. And you may be confused as to what type of policy you need. Or you may not even know what all of your options are!

With Asurea, you don’t have to be the expert – that’s our job! Contact us, and we’ll put you in touch with one of our Asurea Agents who can walk you through the basics to determine your life insurance needs, and to help you select the best type of policy for you and your family (whether it’s Term Life Insurance or Permanent Life Insurance).

And with access to over 40 of the nation’s top-rated insurance companies, our independent agents will find the right policy for you at the lowest cost.

Asurea is your Simple Solution.

[1] Life Insurance Marketing and Research Association, Life Happens, 2014
* Borrowing the cash value from your policy and not paying it back will reduce your death benefit.
* There are a variety of ways to pay your premiums. A monthly payment is most common.

More Simple Solutions For You:

Asurea Insurance Services is the nation’s premier Insurance Marketing Organization that finds the perfect policy for your needs and budget. Asurea offers Mortgage Protection, Medicare Supplements, Final Expense, Retirement Solutions and Permanent Life Insurance

Leslie Freeland

Leslie Freeland

Find her at LinkedIn
After obtaining her Master’s Degree from CSU, Sacramento, Leslie joined Asurea as the Marketing Communications Coordinator in February 2015. Since then, she has been working closely with insurance professionals to educate the public on the importance of life insurance and protect the public from common scams to be aware of, insurance and otherwise.
Leslie Freeland

Latest posts by Leslie Freeland (see all)