All insurance is not the same.
The chart below explains the various types available:
There are two types of life insurance: term and permanent.
There are different categories of permanent life insurance, each offering its own unique advantages.
Permanent life insurance can benefit you during your lifetime.
The cash value in a permanent life insurance policy can be used at any time, for any reason, during your lifetime — and, income-tax-free in most cases.1 For example, you can use your policy’s cash value to:
- Pay for a loved one’s college education
- Turn that side hustle into a full-time business
- Fill an income gap in retirement
- Cover unexpected medical expenses.
1. Accessing cash value will reduce your policy death benefit and values, may result in certain fees and charges, and may require additional premium payments to maintain coverage. Ask your financial professional for additional information about accessing your cash value, including the potential impact on coverage guarantees and certain circumstances under which the values you access could be taxable. You should always consult your tax advisor prior to accessing your policy’s cash value.
The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure you are insurable. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges; if a policy is surrendered prematurely, there may be surrender charges and income tax implications. You should consult a qualified tax professional for tax advice on your own personal situation. All guarantees are based upon the claims-paying ability of the issuer.