Permanent life insurance is the name given to a variety of life insurance policies that do not expire, unlike term life insurance plans. A permanent life insurance policy will combine a death benefit with savings – which can accrue a cash value against which you can have the option of withdrawing.
Whole life and universal life are both types of permanent life insurance policies.
Whole life insurance, also referred to as ordinary or straight life, has a fixed death benefit for a fixed premium and you pay until the maturity date of the policy. A whole life insurance plan includes guaranteed minimum growth that you have the option to borrow against.
Universal life insurance is very similar to whole life insurance but it’s more flexible in terms of what you want to do with it. Universal life plans allow you to increase or decrease your premiums and the resulting cash value. A universal life insurance plan is more transparent than a whole life policy.
The agents at Penwell Insurance can help you determine variation of permanent life insurance best fits your unique requirements. Contact us today to learn more!