Permanent Life Insurance

A Permanent Life insurance policy is going to last your entire life and build cash value.  In addition to providing death benefit protection to help ensure your family has the funds to meet their needs should anything happen to you, a cash value life insurance policy is flexible enough to meet a variety of needs during your lifetime. Cash value is built over time through a combination of net premium payments and interest.  A portion of your premium payments on a permanent life insurance policy goes toward a cash value account. The potential cash value in your policy grows each year with interest, tax-deferred.  Once you have accumulated enough cash value, you can opt to use it to cover your premium payments. If you decide to withdraw some cash value, you may have to resume premium payments to keep the life insurance policy in force.

Benefits of Permanent versus Term Life Insurance

  • Permanent death benefit protection – The death benefit provides protection against economic loss.
  • Cash value accumulation – A permanent policy has the potential to accumulate cash values on a tax-deferred basis and may help you to recover premiums
  • Tax-favored income – Cash withdrawals may be taken on a tax-free basis up to the policy’s cost basis. Loans can be taken on a tax-deferred basis.
  • Death benefit acceleration – The policy’s death benefit may be accelerated to cover qualified long-term care costs, when the policy is designed with long-term care features.
  • Flexibility – The permanent policy may be designed to provide the insured with the flexibility to address changing needs.

For more information on Permanent Life insurance plans offered through Cahaba Benefits Group, LLC please call (205) 443-8093.

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