Life Insurance Forever
Permanent life insurance never expires. As long as you keep the policy active by paying the premium — the policy will remain in force — providing your beneficiary a death benefit one day. Life Long Protection.
I’m David Johnson | Founder of Fortis Life Group, and I acquired my permanent life insurance policy on May 10th 2020. My policy is called a Fixed Index Flexible Premium Adjustable Life ( Index Universal Life). I assessed my needs, current retirement and financial accounts, life insurance needs and more. I monitor my cash value and how the account is performing. I was when I bought it and remain 100% satisfied with my decision. I’m confident the cash value will help supplement my retirement, AND no matter when I die my son will receive the death benefit. Maybe he’ll pay off his house and go on a month long vacation 🙂 Here’s to you my son!
WHOLE LIFE
In most cases the premium and death are fixed. You know exactly what you are paying each month and the amount of death benefit
Can build a “cash value” (see below) that you may have access to later in life and may pay a dividend
- Usually more expensive than term or universal. However, you get life long protection and stability
UNIVERSAL LIFE
- Universal life policies have flexibility. You have flexibility with premiums and can adjust the death benefit
- Cash value component that can earn interest
- You can withdrawal and/or take a loan against the cash value
What is the Cash Value in Permanent Life Insurance?
Think of it like this… When you pay your monthly premium, a portion goes to fund the life insurance policy and other fixed costs (COI, cost of insurance) and a portion goes to the cash value. In other words, your money is being split between two buckets.
Pure Example For Illustration Purposes
**Universal Life Insurance | $300,000 Death Benefit | $350 Monthly Premium
A % of the $350 goes to cover the insurance – mortality (death benefit), administration and more. These fees are assessed based on your age, rating class and more.
The remainder of the $350 goes to the cash value. This cash value can have an accumulation strategy where your money (has the potential) to grow over time. You then have access to this money later in life.
*** We strongly believe whole life and universal life strategies can play an important role in your greater financial plan. These strategies have a place, however they are not for everyone. Before acquiring a permanent life insurance policy it’s imperative your insurance professional explains in detail the working components of YOUR proposed policy AND how it caters to your life and needs.
We are always here to answer any questions you have. Schedule a time now to get your questions answered.
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