Permanent Life Insurance

Permanent life insurance is offered as a fixed premium, fixed return product and is a type of whole life insurance. Permanent life insurance guaranteed cash value accumulation and constant premiums to consumers. Lately consumers want more flexibility than ever especially in purchasing whole life insurance. As permanent life insurance has a cash value paid out at the end of the policy term its cost is always greater than term life insurance. Life insurance is an insurance policy that has no worth of cash and only offers a death benefit. Northwestern mutual is one of the most popular companies offering permanent life insurance policies. You can contact a Northwestern mutual financial representative who will help alter the company’s permanent life insurance plan to suit your distinct needs requirements and budget helping you to secure the future of your family. Northwestern mutual also offers various other types of life insurance policies including term life insurance, whole life insurance and variable life insurance. Northwestern mutual also provides fixed and variable rate annuities that are tailored to meet specific business and personal needs.

Permanent life insurance is more costly as compare to term life insurance because a percentage of monthly premiums contribute to a long-term savings program resulting in a cash value. Longer the term of the permanent life insurance policy higher will be the cash worth. This is because as more money is been paid in cash value will earn higher interest and dividends further increasing the cash value. Premiums of a permanent life insurance policy remain constant over the years in comparison to that of term life insurance where they steadily increase over the life of the policy. As discussed before, premiums of a permanent life insurance policy are invested and contribute to increase the cash value of the policy. If the permanent life insurance policy is cashed during your life the gain is tax deferred. The proceeds are however tax-free to your beneficiary after your death. Permanent life insurance is the best deal if you plan to retain the policy over a longer period. The term of a permanent life insurance policy depends on your age, health, insurance company, type of policy chosen, interest and dividend rates and other such considerations. The majority of permanent life insurance policies have assured and non-assured component.

Types Of Permanent Life Insurance

Permanent life insurance policies are of three main types:

• Traditional Whole Permanent Life Insurance: Traditional whole permanent life insurance is the permanent life insurance policy that offers most guarantees. Some of these guarantees are: annual premiums, minimum guaranteed cash value and death reimbursement etc. Nowadays traditional whole permanent life insurance policies are participating meaning that dividends earned by them either increase cash value and/or death benefits or decrease premium payments or are refunded in cash. If you have problems in saving money then traditional whole permanent life is the most suitable option for you.
  
• Universal Permanent Life Insurance: If you want premium flexibility in initial years of your insurance policy universal permanent life insurance is the most suitable option for you. It is more flexible in comparison with traditional whole permanent life as premiums vary from year to year and sometimes can even be skipped for a certain time period. Universal permanent life insurance has highest guaranteed premiums and least guaranteed cash worth and death benefits. Instead of dividends universal permanent life insurance earn interest at the credited rate determined every year.
  
• Variable Permanent Life Insurance: Variable permanent life insurance is the perfect solution for risk takers. It offers the fewest number of guarantees along with great potential for cash value increases. It however has guaranteed annual premiums and minimum death benefits.