Permanent life insurance is designed to offer lifetime coverage and does not expire after a pre-specified term. The policy remains in force as long as required premiums are paid based on contract illustration. Some types of policies may offer a cash value accumulation feature.
The types of permanent life insurance you may want to consider are:
- Whole Life: Fixed premium payments, guaranteed death benefit and cash value accumulation
- Universal Life: Flexible premiums, adjustable death benefit and in some cases cash value accumulation; can be tailored to your financial and insurance needs and changed when your circumstances change, without having to buy a new policy.
- Variable Life: Death benefit and cash value can increase over time if underlying policy investments perform well; policy owner can choose from sub accounts that offer varying degrees of risk.
- Single Premium Life: Entire premium is paid at purchase (no future premium payments); some policies may offer cash value accumulation or guaranteed premiums. May be used for asset or wealth transfer purposes.
Benefits of a Permanent Life Insurance Policy
Permanent Life Insurance may offer the following advantages:
- The option to build cash value tax-deferred and death benefits paid to the beneficiaries are income tax-free to the beneficiaries
- If properly structured, life insurance policies may be excluded from your taxable estate
- Designed to offer lifetime coverage; the policy remains in force as long as premiums are paid or there is adequate value in the policy to continue paying the cost of insurance
- The younger and healthier you are when you purchase your policy, the lower the annual premium may be
- Some policies offer riders or options that provide additional benefits, such as Long Term Care coverage
Common Uses of Permanent Life Insurance
Permanent Life Insurance may be used to help:
- Fund the living expenses of surviving family
- Ensure your family is able to keep your home and other assets
- Fund estate planning
If needed, you can use your policy as collateral for a loan or if it has a cash value accumulation feature you can borrow against the cash value.*
Want to request an insurance quote? “Get Started” on securing your permanent life insurance policy personal or business needs online, or call us at 1-800-724-9949 to schedule an appointment with one of our life insurance representatives. You can also stop by your nearest M&T branch to learn more.
* Cash value of a life insurance policy should not be considered an investment. Any partial withdrawals or a loan that you do not pay back reduces the death benefit. Loans or withdrawals in excess of the premiums you paid may be taxable. If your policy lapses with a loan outstanding, the amount of the loan may be considered taxable to you.