What are the disadvantages of permanent life insurance?

Permanent life insurance often comes with higher premiums than term life insurance. Also, some people may prefer the short-term flexibility of term life insurance policies over permanent life insurance.

At what age should you get permanent life insurance?

Getting permanent life insurance in you 20s or 30s could help you lock in a low premium while allowing the cash value component time to grow. However, the best time to open a permanent life insurance policy depends entirely on your goals.

What happens if you cancel a permanent life insurance policy?

Cancelling a permanent life insurance policy could come with costs and fees which will be deducted from the cash value. Also, cancelling means that you are no longer covered by the policy, so you may need to seek coverage elsewhere.

Permanent Life Insurance: How It Works, Types & Cost

Life insurance is a vital part of any financial strategy. The type you choose will depend a lot on your goals. If those goals include having coverage that lasts your entire lifetime, permanent insurance might be the best choice for you. Unlike term life insurance, which only covers you for a specific time frame (typically 20 years or less), permanent insurance stays in force for life—as long as you continue to pay the premiums.

What is a permanent life insurance policy?

With permanent life insurance you can transfer a death benefit to your beneficiaries free from federal income taxes. Some plans also allow you to build equity, or cash value, on a tax-deferred basis. This type of life insurance is best suited for individuals or business owners with long-term life insurance needs.

Types of personal life insurance

Type	Guaranteed Death Benefit	Can Build Cash Value	Flexible Premiums	Potential Risk/ Reward Greater
Universal Life	No	Yes	Yes	No
Guaranteed Universal Life	Yes	No	No	No
Variable Universal Life	No	Yes	Yes	Yes
Guaranteed Variable Universal Life	Yes	Yes	No	Yes

Permanent life insurance vs term life insurance

While permanent life insurance provides lifelong coverage, term life insurance policies cover a specific period, usually 10, 20, or 30 years. Term life insurance only pays the death benefit if the insured person dies while covered during the term. Term life insurance is useful for covering short-term needs, but permanent life insurance provides lifelong coverage and include a cash value component.

Why permanent life insurance from Edward Jones

Each type of life insurance offers benefits and trade-offs. What's appropriate for you will depend on your long-term goals. That's why it's important to work with someone who spends time getting to know you. Contact your local Edward Jones financial advisor for more information about the permanent life insurance policies Edward Jones offers. We'll walk you through all of your options so you can make the right choice for your situation.

Permanent life insurance FAQs

Important Information:

Edward Jones is a licensed insurance producer in all states and Washington, D.C., through Edward D. Jones & Co., L.P., and in California, New Mexico and Massachusetts through Edward Jones Insurance Agency of California, L.L.C.; Edward Jones Insurance Agency of New Mexico, L.L.C.; and Edward Jones Insurance Agency of Massachusetts, L.L.C.