Permanent Insurance

Permanent insurance may be the right choice for you if you need long-term financial protection. As long as you pay the premiums, your beneficiary will receive the death benefit. Permanent life insurance also builds up a cash value, which you can use during your lifetime.

Features:

• Non-taxable death benefits
  Death proceeds generally free from income tax, providing more benefits for your beneficiary.
  
• Proceeds paid directly to beneficiaries
  Death proceeds can be paid directly to your beneficiary, avoiding probate delays and safety from creditors.
• Tax-deferred growth
  Accumulates cash value on a tax-deferred basis.
• Tax-advantaged liquidity
  Cash surrender value provides a source of funds for the policyowner through loans with low interest rate spreads and/or a partial surrender, both of which will affect the death benefit amount, policy value, and taxation.

There are four different types of permanent life policies:

• Whole or ordinary life
  This is the most common type of permanent insurance. The premiums and death benefit generally remain constant over the life of the policy.
• Universal or adjustable life
  Offers you flexibility in both premium payments and the death benefit your family receives. You can adjust the death benefit and your premium payments, within certain limits, to fit your financial situation.
• Variable life
  This policy has a value tied to the performance of financial markets. The death benefit and cash value vary with the performance of a portfolio of investments, which you select. The cash value and death benefit may grow more quickly in a variable life policy than in other types of policies, but you also have more risk. If the market does not perform well, your cash value and death benefit may decrease. Some policies guarantee that the death benefit does not fall below a minimum level.
• Variable-universal life
  This policy combines features of variable and universal life policies. You have the investment risks and rewards characteristic of variable life insurance, coupled with the ability to adjust your premiums and death benefit that is characteristic of universal life insurance.

Frequently Asked Questions
Glossary of Terms

This material contains only general descriptions and is not intended as tax advice. Please consult your tax advisor for specific tax questions. For information about your specific insurance needs or situation, please contact your insurance agent.