What types of permanent life insurance can you buy?

Universal Life Insurance combines permanent life insurance protection with a tax-advantaged investment component. As cash value accumulates, you can use it to pay part or all of your insurance charges. You select an investment mix that is as individual as you are—taking into account your financial goals and circumstances, and the amount of investment risk you’re comfortable with. This type of policy is attractive for people who want to actively manage their life insurance policy.

Whole Life Insurance is a form of permanent life insurance with a fixed or level premium that is usually payable for the entire lifetime of the insured. Some companies offer policies that can be paid with a single premium, or premiums payable for a shorter period of time, usually over 20 years or until age 65. This kind of life insurance contract has both an insurance and a savings component. The insurance component pays a stated amount upon death of the insured. The savings component accumulates a cash value that the policyholder can withdraw or borrow against. It builds tax-deferred cash value you can use for a family's loss of income, mortgage costs, or educational needs — or to leave a legacy for the next generation. A whole life policy can be either “Participating policy” or “Non-participating policy”. With participating life insurance, your policy may be credited with policy holder dividends. You can use these dividends in a number of ways: you can use them to buy additional coverage, receive a cash payment, reduce your premiums, or you can leave them on deposit to earn interest.

Whole life insurance offers guaranteed, reliable coverage to last your entire lifetime. Ideal for personal and business needs, it provides permanent protection you can count on, and guaranteed cash values or paid-up insurance that grow over time.