Why You Need to Stop Underestimating Permanent Life Insurance


Why You Need to Stop Underestimating Permanent Life Insurance

A recent survey conducted by Allianz revealed many consumers are underestimating permanent life insurance. The role of permanent life insurance is far larger than many people are aware of. Benefits of permanent life insurance are more numerous than the typical consumer realizes. Here are some important advantages.

Top Advantages Life Insurance Provides You

Permanent life insurance offers cash value in addition to the death benefit. This is a huge benefit because cash value has the ability to grow, thereby becoming a significant asset for you in more than one way. For instance, policyholders may utilize cash value as a tax-free earning by taking a loan against the policy. Therefore, the loan interest paid by the policyholder goes back into the policy. Policyholders may also be use their policy to help adjust tax brackets for the owner. However, this depends on how the owner chooses to take dividends and interest.

Ultimately, permanent life insurance serves as a wise addition to your financial plan. This addition minimizes taxes and builds assets over time. Options with permanent life insurance also allow for death benefit acceleration. Long-term care or critical illness riders make this possible.

In the end, permanent life insurance provides more flexibility and value, while term life insurance does not. Mark Teitelbaum, industry veteran, says, “Term is for when you die, permanent is for when you are alive.”


There’s little downside to investing in life insurance. However, it must be designed properly. To find out more, contact us and we will have a cash value expert speak with you.

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Since insurance is oftentimes overwhelmingly confusing, we want to shed light on this industry by answering YOUR questions.  So if you have any questions or concerns, comment below. Your question may be the topic of our next article!

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