There is a life insurance route made for every walk of life. However, there is a specific type of policy known as permanent life insurance that may meet your needs. These types of life insurance plans never expire, so they will last the entire life of the policyholder.1 Read on to find out how permanent life insurance works, the different types of policies, and what Aflac has to offer.
What is a Permanent Life Insurance Policy?
Permanent life insurance plans usually have the basic components of other types of life insurance policies, like the death benefit and some type of savings element.2 The name refers to the fact that these policies are meant to last indefinitely, or until the policyholder passes.
Types of Permanent Life Insurance
There are a few different ways one can secure a permanent life insurance policy. First, you must determine which type of plan makes the most sense for your unique needs. Here, we offer Aflac® Life Solutions – Whole Life. Aflac does not offer universal life insurance, but we do offer portable whole life plans that can meet your personal needs, and the ability to skip a medical exam.
Whole Life Insurance
A common type of permanent life insurance is whole life insurance. Aflac offers whole life insurance that lasts the policyholder’s entire life, builds cash value in a secure account, and has regularly scheduled premiums to keep the policy active.
Universal Life Insurance
Another type of permanent life insurance policy is universal life insurance. The main difference between whole and universal life insurance is that premium payments can be adjusted over time with universal life insurance. You may be able to scale your rates down or skip a payment if you need to pay for other large expenses, like college tuition or a mortgage. This benefit can give you greater flexibility, but it may negatively impact premium payments over time.3
In these life insurance plans the beneficiary only gets the death benefit when the policyholder passes.4 Universal life insurance may be particularly helpful if you are able to work with a financial professional that can help you determine how to best invest your cash value. The two types of universal life insurance are indexed and variable.5
Aflac does not offer universal life insurance, but we can point you toward our whole life insurance policy if you have different coverage goals in mind. Chatting with an agent about your options can make this decision easier.
Variable Universal Life Insurance
Variable universal life insurance has flexible premiums and a savings component, but more factors influence how the savings can grow. The savings portion, or cash value, grows based on the investment methods that you choose.6
There is usually a minimum and maximum growth rate allowed in this type of permanent life insurance policy. More variables lead to more risk but can also lead to more reward.7
Indexed Universal Life Insurance
The second type of universal life insurance is indexed universal life insurance. This type of policy has the same basic parts as a permanent life insurance policy, but the cash value grows based on a chosen stock market index.8 If the chosen index is performing well, the account will grow. If not, some companies allow it to grow at a minimum rate.9
How Much Does Permanent Life Insurance Cost?
Like all life insurance plans, permanent life insurance costs depend on a variety of factors like age, medical history, family size, and location.
