There is a life insurance route made for every walk of life. However, there is a specific type of policy known as permanent life insurance that may meet your needs. These types of life insurance plans never expire, so they will last the entire life of the policyholder.1 Read on to find out how permanent life insurance works, the different types of policies available, and what Aflac has to offer.
Permanent life insurance plans usually have the basic components of other types of life insurance policies, like the death benefit and some type of savings element.2 The name refers to the fact that these policies are meant to last indefinitely, or until the policyholder passes.
There are a few different ways one can secure a permanent life insurance policy. First, you must determine which type of plan makes the most sense for your unique needs. Here, we offer Aflac® Life Solutions – Whole Life. Aflac does not offer universal life insurance, but we do offer portable whole life plans tailored to your personal needs, and the ability to skip a medical exam.
A common type of permanent life insurance is whole life insurance. Aflac offers whole life insurance that lasts the policyholder’s entire life, builds cash value in a secure account, and has regularly scheduled premiums to keep the policy active.
Another type of permanent life insurance policy is universal life insurance. The main difference between whole and universal life insurance is that premium payments can be adjusted over time with universal life insurance. You may be able to scale your rates down or skip a payment if you need to pay for other large expenses, like college tuition or a mortgage. This benefit can give you greater flexibility, but it may negatively impact premium payments over time.3
In these life insurance plans the beneficiary only gets the death benefit when the policyholder passes.4 Universal life insurance may be particularly helpful if you are able to work with a financial professional that can help you determine how to best invest your cash value. The two types of universal life insurance are indexed and variable.5
Aflac does not offer universal life insurance, but we can point you toward our whole life insurance policy if you have different coverage goals in mind. Chatting with an agent about your options can make this decision easier.
Variable universal life insurance has flexible premiums and a savings component, but more factors influence how the savings can grow. The savings portion, or cash value, grows based on the investment methods that you choose.6
There is usually a minimum and maximum growth rate allowed in this type of permanent life insurance policy. More variables lead to more risk but can also lead to more reward.7
The second type of universal life insurance is indexed universal life insurance. This type of policy has the same basic parts as a permanent life insurance policy, but the cash value grows based on a chosen stock market index.8 If the chosen index is performing well, the account will grow. If not, some companies allow it to grow at a minimum rate.9
Like all life insurance plans, permanent life insurance costs depend on a variety of factors like age, medical history, family size, and location. To get a better idea of what your plan might cost, try our life insurance cost calculator.
Don’t wait until it’s too late. Help cover yourself and your family with affordable coverage from Aflac.
The main benefit of permanent life insurance is that it lasts through the policyholder's entire life cycle. On the other hand, term life insurance only lasts for a specific amount of time and is typically less expensive.10 This policy may be a good option if you have an idea of how long you’ll need life insurance coverage.
Some of the major pros of permanent life insurance are that it offers a cash value component and lasts indefinitely. Permanent life insurance plans also offer a handful of retirement planning benefits that may make sense for you.
If you are looking for life insurance with permanent qualities, like our whole life insurance plan, you’ve come to the right place. Our whole life plans offer lifelong, lasting coverage at affordable rates and high-growth potential. Chat with an Aflac agent to see if this is the right choice for you.
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1-2 Investopedia. Permanent Life Insurance Definition. Updated March 28, 2021. Accessed July 6, 2021. https://www.investopedia.com/terms/p/permanentlife.asp.
3-4 Investopedia. Universal Life Insurance. Updated June 26, 2020. Accessed July 6, 2021. https://www.investopedia.com/terms/u/universallife.asp.
5 Investopedia. Indexed Universal Life Insurance/ Pros and Cons. Updated June 13, 2021. Accessed July 6, 2021. https://www.investopedia.com/articles/personal-finance/012416/pros-and-cons-indexed-universal-life-insurance.asp.
6-7 Investopedia. Variable Universal Life (VUL) Insurance Definition. Updated July 10, 2021. Accessed July 6, 2021. https://www.investopedia.com/terms/v/variableuniversallife.asp.
8-9 Investopedia. Indexed Universal Life Insurance/ Pros and Cons. Updated June 13, 2021. Accessed July 6, 2021. https://www.investopedia.com/articles/personal-finance/012416/pros-and-cons-indexed-universal-life-insurance.asp.
10 Investopedia. Term Life Insurance Definition. Updated March 21, 2021. Accessed July 6, 2021. https://www.investopedia.com/terms/t/termlife.asp.
Policy Series A68000 - In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In New York, NY68100-NY68400.
Policy Series B60000 (Term & Whole) - In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Policy Series Q60000 (Whole) - In Arkansas, Policy Q60100CAR. In Idaho Policy Q60100CID. In Oklahoma, Policy Q60100COK. In Oregon, Policy Q60100COR. In Texas, Policy Q60100CTX. Policy Series Q60000 (Term) - In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.
This is a brief product overview only. Coverage may not be available in all states. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policies and riders for benefit details, definitions, limitations and exclusions. For availability and costs, please contact your local Aflac agent/producer.
Coverage is underwritten by Aflac. In New York, coverage is underwritten by Aflac New York.
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