As opposed to term insurance which by definition has an expiration date, permanent insurance is just that – permanent. It stays with you your whole life. However, it’s not simply a never-ending “pure insurance” policy like term coverage.
Permanent insurance has two components: insurance protection and cash value. These two elements work in tandem with each other over your entire life. Going one step further, under the umbrella of Permanent Insurance we have Index Universal Life (IUL) which is pegged to a financial index such as a stock index with many tax advantages. As time passes and you make your premium payments, your policy gradually increases in cash value and decreases in insurance protection.
There are so many types of insurance available, how do you choose? This is where you need a trusted financial and insurance advisor, because there are many options available for you. We can help. BF Insurance Agency offers various plans to help you find the perfect one for your family.
PROS:
- Provides tax-free death benefit
- Builds cash value
- IUL policies allow cash value loans, generally free of income tax
- Cash value grows tax-deferred
- Policy loans are allowed on the cash value and are generally income tax-free.
- Acts as an account for “forced savings”
CONS:
- More expensive than term insurance
- Cash value element may be unnecessary for some families
Discover the right permanent life insurance plan for you.
Basic
per month
STANDARD
per month
Premium
per month