Permanent Life Insurance

 Permanent Life Insurance Has Real Benefits

When you're young, you frequently disregard perfectly good advice that is given to you on a range of subjects. Consider buying a permanent life insurance policy early in your working life, while you're young and healthy, is one piece of advise that shouldn't be disregarded.

Too many American youth only contemplate the death benefit of life insurance, ignoring its other benefits and full worth. Although it accumulates cash value that policyholders can use to pay for college, put a down payment on a house, or use as a significant source of income for any other purpose throughout their lifetime, permanent life insurance offers vital death benefit protection.

The advantages of buying a permanent life insurance policy at age 25 versus age 40 are startlingly different.

By investing a little over $180 a month in a Flexible Choice Whole Life insurance policy, a 25-year-old female will have more than $29,000 in guaranteed cash value by the time she turns 40. By the time she turns 65, the guaranteed cash value will have increased to $120,600 and will have a guaranteed death benefit of $300,000.

This female would have had just over $53,000 in guaranteed cash value at age 65 and a death benefit of $161,000 if she had waited until age 40 to start making the same monthly payment into a Flexible Choice Whole Life policy. (Nearly half of the amount she could have purchased if she had waited until she was 25.)

A financial expert will create a plan specifically for you based on your financial objectives and show you how permanent life insurance works with a good financial strategy.

1. Reducing the death benefit and policy values by accessing cash values may result in surrender fees and charges, additional premium payments to keep coverage in place, and other costs.

2. Assumptions: female, age 25, preferred non-smoker, monthly premium of $183, death benefit of $300,000.

3. Hypotheses: 40-year-old female, non-smoker, preferred, monthly premium of $183, death benefit of $161,503. only considers a slight decrease in health rating. A further change in health would result in a higher premium or make coverage unavailable.

Visit www.Pennmutual.com to find out more about the advantages of beginning a financial plan that includes permanent life insurance and the actual rewards of doing so.

Minimize Retirement Risk With Permanent Life Insurance

Many Americans worry about their retirement due to ongoing economic uncertainties. Workers may be troubled by the potential of a retirement where the notion of not having enough money may not be hyperbole rather than daydreaming about their senior years. Consumers want to reduce risk and take charge. A financial advisor will customize a strategy to match each person's unique financial objectives, but every diversified retirement strategy should include permanent life insurance because it can provide security and growth for individuals who still have a number of working years ahead of them.
Permanent life insurance offers both the possibility of accumulating cash values, which can be a significant source of retirement income, and death protection. Cash from a permanent insurance policy may be used for any purpose as its value increases over time tax deferred. In addition to supplementing other income sources like Social Security, 401k savings, or pensions for those who are fortunate enough to have them, this type of life insurance offers consumers a certain amount of flexibility that empowers them to make decisions and better manage their financial lives. The "gap years" that occur between retirement and the age at which Medicare and Social Security benefits start may also be covered in part by the income stream from a perpetual life insurance policy.

The majority of retirees will want the assistance of a financial expert to decide how best to allocate their resources during the transition period and during retirement. Consumers should be aware, though, that a permanent insurance coverage can mean the difference between retiring when you want to rather than when Social Security and qualifying plan dividends begin. A retiree may also be able to put off the start of receiving Social Security benefits, which would eventually result in bigger monthly payments over time.

A perpetual insurance policy may help cover unanticipated or planned expenses such as healthcare costs, the cost of a grandchild's college education, or the start-up of a family business in addition to aiding in bridging the gap years. No matter how permanent insurance is ultimately used, if a policy is properly constructed, it can offer a death benefit that is both income tax and estate tax free. Retirement income can then be spent with the assurance that a legacy will be left to one's children or a preferred charity.

To learn more about how to leave a legacy and strengthen your retirement plan with permanent life insurance, please visit www.pennmutual.com.