Although it may sound like a paradox, there is such a thing as permanent term life insurance. Permanent term life insurance is also known as Guaranteed Universal Life Insurance or No Lapse Universal Life. If you aren’t here for an in-depth explanation you can compare permanent term life insurance quotes here with no personal information. Otherwise, let’s get down to business. In this article, we will be unmasking permanent term life insurance, some of the riders you can choose from, sample quotes of perm life insurance, and of course we will provide you with other important information such as what permanent life insurance and term life insurance is, and finally we will end the article with the question you may have by the end of the article! Stay tuned but for now here are some key points from this article;
- Guaranteed Universal Life Insurance is called a permanent term, or lifetime term for a few reasons. The first being the fact that it offers the same kind of simplicity as term life insurance. Unlike whole life, there are no cash value accumulation or tax shelters to discuss.
- Permanent term life insurance also carries its name due to the fact that it does technically expire. You can get coverage to age 90 or 121, meaning it will expire once you reach that age.
- Like a term life insurance policy a GUL also comes with riders, also known as add on’s. The first of which automatically comes with the policy is called an Accelerated Death Benefit Rider. What this add-on does is allow you to spend up to 50-75% of your coverage amount if you come down with a terminal illness.
- When it comes to permanent life insurance there are a couple of different plans available. Whole life insurance is a form of permanent life insurance and provides you with coverage for you guessed it, your WHOLE life!
- Universal life insurance is another form of permanent life insurance that also provides you with permanent protection but also gives you the chance to be flexible with your premiums and death benefit.
- Index and Variable Universal life insurance are both investment types that are also permanent life insurance and provide both permanent coverage and flexibility as a traditional universal life insurance product does.
- It wouldn’t be a very informative article without some solid information about the other options you have out there when it comes to buying life insurance. Term life insurance is a very good go-to life insurance product. It is actually the most bought life insurance product in the market.
- But with a perm life insurance policy, you can feel secure that your premiums will be the same for your whole life so when you are 80 you are going to be paying the same in premiums as if you were 21 (if you are 21 right now) which is amazing!
Permanent Term Life Insurance Definition:
Guaranteed Universal Life Insurance is called a permanent term, or lifetime term for a few reasons. The first being the fact that it offers the same kind of simplicity as term life insurance. Unlike whole life, there are no cash value accumulation or tax shelters to discuss. While it does accrue cash value, it is very minimal and usually just kept to keep the premium level throughout the life of the policy. This policy is also much more affordable than your typical whole life insurance policy. However, if you are interested in cash value at some point most GUL policies do come with an option to convert to a Universal Life Insurance Policy given your needs change throughout the length of the policy. This provision allows you to convert your policy without proof of insurability, meaning you won’t have to take another medical exam.
Permanent term life insurance also carries its name due to the fact that it does technically expire. You can get coverage to age 90 or 121, meaning it will expire once you reach that age. At that point you will statistically be dead, hence the “permanent” prefix. Also at that age, your needs for life insurance should be drastically smaller. This type of policy is good for anyone looking to take care of more permanent financial responsibilities like burial expenses or leaving a legacy behind.
Permanent Term Life Riders
Like a term life insurance policy a GUL also comes with riders, also known as add on’s. The first of which automatically comes with the policy is called an Accelerated Death Benefit Rider. What this add-on does is allow you to spend up to 50-75% of your coverage amount if you come down with a terminal illness. Basically, if you are diagnosed as having 12 to 24 months to live you will be given that money to check off your bucket list or pay for medical expenses. Another rider is the Accidental Death Benefit Rider, which will increase your death benefit if your death is the result of an accident. I know you’re probably thinking “I could’ve figured that one out.”
But what about the kids! Well, this policy also comes with a child term insurance rider. This rider will cover each kid that you have for $50,000 up to ages 19 to 25 depending on the company. There are a few other riders that are contingent on the carrier and policy type and you can discuss this with your agent.
Permanent Term Life Insurance Quotes
Permanent term life insurance as we mentioned before is also known as guaranteed universal life insurance or no lapse universal life insurance. Here are some sample quotes for the different age groups so you can get an idea of what you will see but don’t forget you can go to your own quote engine below this article!
- If you are a healthy (non-smoker) female 21-years old and looking for a permanent term life insurance policy with a face amount of $250,000 you are looking at $60.52 monthly until age 121 with Mutual of Omaha.
- If you are a healthy (non-smoker) male 35-years old and looking for a permanent term life insurance policy with a face amount of $250,000 you are looking at $124.76 monthly until age 121 with Mutual of Omaha.
- If you are a healthy (non-smoker) female 50-years old and looking for a permanent term life insurance policy with a face amount of $250,000 you are looking at $190.19 monthly until age 121 with Mutual of Omaha.
- If you are a smoker male and you are 50-years old you are looking at $411.68 monthly with smoker rates, just to get an idea of the big change from non-smoker to smoker.
- If you are a healthy (non-smoker) male 60-years old and looking for a permanent term life insurance policy with a face amount of $500,000 you are looking at $632.42 monthly until age 121 with Mutual of Omaha.
Permanent Life Insurance Explained
When it comes to permanent life insurance there are a couple of different plans available. Whole life insurance is a form of permanent life insurance and provides you with coverage for you guessed it, your WHOLE life! Universal life insurance is another form of permanent life insurance that also provides you with permanent protection but also gives you the chance to be flexible with your premiums and death benefit. Index and Variable Universal life insurance are both investment types that are also permanent life insurance and provide both permanent coverage and flexibility as a traditional universal life insurance product does. However, Index Universal life insurance is an easier investment type, this product uses part of your cash value to invest into an investment of your choice. There is a cap and floor so there isn’t much risk with an index universal life insurance policy. Variable Universal life insurance is a much riskier investment type. It offers permanent coverage, flexibility, and investment options which you are in charge of. With this kind of policy, you will need the free time to monitor it so that you don’t lose any of your cash value, it is riskier since there is no cap or floor to protect you. All permanent life insurance products allow you room to grow and accumulate cash value which you can access whenever you need it like for your premiums or for your children’s college funds but you must repay the loan from your policy.
Term Life Insurance Explained
It wouldn’t be a very informative article without some solid information about the other options you have out there when it comes to buying life insurance. Term life insurance is a very good go-to life insurance product. It is actually the most bought life insurance product in the market. We love term life insurance products because our clients love it more! Term life insurance is a form of temporary life insurance that provides you with coverage for a specific period of time. Term life insurance is the most affordable life insurance type on the market and that’s one of the reasons they are such a go-to for most people. Term life insurance is perfect for those who are trying to have life insurance just to fill a specific need for the time being since it’s a temporary plan or those who need an SBA loan buy a term life insurance policy. If you are looking for a no medical exam policy term life is the way to go it’s super quick and you can get coverage between 24-72 hours instead of 6-8 weeks! Feel free to take a peek at our list of the best no medical exam life insurance companies for an idea of companies who offer the best no medical exam plans and sample quotes! “Term” refers to the period of time you would like to remain covered for, this depends on the company you choose coverage from but most life insurance companies offer 10, 15, 20, or 30-year term policies.
So, Should I get Permanent, Perm, or Term Life Insurance?
We honestly can’t answer that question for you because we don’t know your specific needs but you can give us a quick call or chat us and we will give you a no obligation quote free of charge. Out of the three options though we have to be on Permanent term (Perm) life insurance’s side because these products in our opinion are really good products for our clients who are looking to save money and want a permanent life insurance without having to burden your wallet. Term life is the best choice for those who want something easy and temporary or simply have a small budget for life insurance because it has the lowest prices. Permanent life insurance is more complex and tends to cost more than a term policy but it offers additional benefits but each product from every company is different so you would have to read their highlights to get an idea of what benefits you could receive. As you already know we age and we are not like wine when we age it doesn’t make the life insurance companies happy at all the more we age, when we age life insurance companies find it you more and more liable year after year because of the fact that as you age your health decreases and you are more vulnerable to develop a medical condition. But with a perm life insurance policy you can feel secured that your premiums will be the same for your whole life so when you are 80 you are going to be paying the same in premiums as if you were 21 (if you are 21 right now) which is amazing because most products raise your premiums yearly or sporadically.
Work with us!
If you’ve read this far and you feel like this is the product for you then feel free to give us a call with any questions or concerns that you may have. You can compare Guaranteed Universal Life Insurance quotes here or hit the chat below with your questions if it’s not too late. If you don’t feel like this is the product for you, or just have no idea, call us anyway! As the first online life insurance marketplace, we allow you to shop around with all the companies and compare all the products on the market. If there is anything you feel like we forgot to cover drops us a comment below. Welcome to Insurechance!
