No matter if you’re looking to provide for a child after you pass or you want to leave a gift to a charity that’s close to your heart, a life insurance policy comes with important benefits. A permanent life insurance can help you rest with the peace of mind that comes with knowing that your beneficiaries will receive your death benefit, no matter when you pass.
Start with Benzinga’s guide to find the best permanent life insurance policy now.
Compare Permanent Life Insurance
Here's a round-up of a few of the best permanent life insurance providers.
Transamerica offers both whole life insurance and index universal insurance. Both of these policy options fall under the umbrella of permanent life insurance, but they each offer different benefits.
With Transamerica, a whole life insurance policy, otherwise referred to as their Transamerica Lifetime policy, guarantees a death benefit, an accumulation of cash value and a guaranteed level premium.
It also provide living benefit riders which can be added onto your policy, making it fully customized to fit your unique needs. For example, you may be able to add a rider that allows you to access your death benefit before you pass in the event that you
Transamerica’s index universal life policy can provide protection for a family’s standard of living, or help pay for a child’s education. Index universal life policies offer interest on the cash value based on a stock market index chosen by your insurer. The Transamerica Financial Foundation IUL provides a death benefit and the potential for policy value accumulation with basic interest account or index account options.
Mutual of Omaha
Mutual of Omaha offers whole life insurance and universal life insurance policies. The whole life insurance policy offers guaranteed coverage for your whole life with no medical exam required, premiums that are guaranteed not to rise, a cash value portion of your policy that you can access in the event of an emergency and a set death benefit.
Mutual of Omaha’s universal life policy offers financial protection that lasts throughout your lifetime as well as a cash value that can be accessed while you are still alive. Mutual of Omaha’s universal life insurance policy also offers you the ability to adjust your premium payment amount and frequency, as well as the ability to decrease or increase the amount of your death benefit. The universal policy is a good choice for those who are entering their prime earning years and are willing to take on some additional risk with their policy.
A con of buying a policy through Mutual of Omaha is that if you choose to buy a policy online, your coverage options may be limited compared to buying through an agent. However, if you prefer the personal touch that comes with buying from an agent, meeting with a Mutual of Omaha representative can actually work in your favor.
Northwestern Mutual was recently awarded Investor's Business Daily’s 2021 No. 1 spot on its list of Most Trusted Financial Companies for Life Insurance, and the company has boasted high financial ratings for years. Northwestern Mutual currently maintains an A++ rating from AM Best as well as a AAA rating from Moody’s.
Northwestern Mutual offers both universal and whole life insurance options. Northwestern Mutual’s whole and universal policies both offer the potential to earn dividends on the cash value of your policy, which are paid out on a weekly basis.
The company can also allow you to make your life insurance more personalized by creating an investment strategy that fits your risk tolerance. While you’ll need to speak with a representative to get a quote for your policy, Northwestern Mutual’s flexible policy options can help you customize your insurance.
What is Permanent Life Insurance?
Permanent life insurance is a term for life insurance policies that will not expire. Permanent life insurance policies include a death benefit and cash value component. The two most common types of permanent life insurance policies are whole life and universal life. As long as you continue to pay your premiums, permanent life insurance policies guarantee that your death benefit is paid out to your beneficiaries.
Benefits of Permanent Life Insurance?
There are a number of benefits that come with investing in a permanent life insurance policy. The first benefit, and most important, is the permanent death benefit.
While all life insurance policies have a death benefit, permanent life insurance guarantees a payout for your loved ones after you pass away. Unlike a term life insurance policy, you won’t need to worry about paying premiums for years only for your policy to expire worthless because you’ve outlived it.
A permanent life insurance policy also becomes a savings item, which you can rely on in the event that you need a quick loan. When you make a payment on a permanent life insurance policy, a portion of your premium is funneled into a component of the policy called your cash value.
If you don’t touch tap into the cash value, the policy’s value will continue to grow and compound over time. You may be able to withdraw from your cash value component under certain circumstances, and you can also take a loan against the value of your policy.
Another advantage of the cash value is that it is tax-deferred. This means that as long as the policy stays active, the insured does not need to pay any taxes on the earnings, allowing it to grow and compound faster.
Later in life, when you’re not working a job and bringing home regular income, you may take money from your policy at a lower tax percentage than you would have if you deducted it while you were working. In addition, as long as the amount taken out does not exceed the sum of the premiums paid, money can be taken out without being taxed.
Who Needs Permanent Life Insurance?
If you’re looking for financial security for your loved ones in the case of your death, a life insurance policy is a good idea. There are certain circumstances where a term life insurance policy may be a better choice than a permanent policy. Term life insurance policies are more common than permanent life insurance policies because they are significantly more affordable. However, there are some benefits that are only found on permanent policies.
A permanent life insurance policy can be advantageous if you want to guarantee that your beneficiaries receive your death benefit. A permanent life insurance policy can also be a good choice for anyone that would prefer to get some money back from their life insurance. Unlike a permanent life insurance policy, term policies do not accumulate a cash value. If you think that you’ll need to take a loan against your balance, be sure to consider a permanent policy.
If you’re young and healthy, permanent life insurance may not be needed at this point in your life. Permanent life insurance is typically more expensive and more complex than term life policies, so if you can’t keep up with the premium payments of a permanent policy, then it isn’t the right option for you.
If you’re thinking much more long term, a permanent life insurance policy could be a good option for you. You may be a parent and would like to put money away securely for your children, or you may need to provide some financial security for your spouse because you know your death would be a major hardship on them.
Protect Your Family with Life Insurance
If you’re considering investing in a life insurance policy, it’s a good idea to begin comparing policy options as soon as possible. Life insurance policies tend to be more affordable when you’re younger — and you might be surprised at just how low your premiums might be when you apply early enough.
Be sure to get a quote from a few competing life insurance providers to know that you’re getting the best price on your protection as possible.
Frequently Asked Questions
What is better term or permanent life insurance?
The type of life insurance that is better for you is highly dependent on you and your life. While term insurance may be the cheaper option, it does not last as long as a permanent policy and it does not accumulate a cash value. Determining which is better depends on what you can handle financially and what you would like to get out of your life insurance policy.
Can you cash out a permanent life insurance policy?
Yes. You can cash out a permanent life insurance policy. To do this you can either borrow against your cash value, withdraw the cash in regular payments or in a lump sum or you can surrender your policy entirely.
Benzinga crafted a specific methodology to rank life insurance. To see a comprehensive breakdown of our methodology, please visit our Life Insurance Methodology page.