Permanent Life Insurance

Family walking on pierLife 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.

How it works

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.

How much you need

The amount you need really depends on your financial goals. No two individuals' life insurance needs are the same. Your financial advisor will look at your entire financial picture to help you calculate the right amount for your situation. Factors could include: What you've already saved, what you're trying to save and what you want to leave behind.

Over time your needs and goals will change. Even if you have coverage in place today, it's important to review it with your financial advisor periodically, particularly after the addition of a child, change in marital status, a change in home ownership or when changing jobs if your policy was provided through your employer.

What you can expect to pay

Because of the lifetime benefits it provides, permanent insurance can be three to five times higher, on average, than a term policy. The primary reason for this is that unlike term life insurance, which only covers you for a set period of time, with permanent insurance you have coverage for as long as you pay your premiums. The amount you pay can be based on your age, gender, health and the type and amount of coverage you choose. Permanent insurance premiums are generally level, and expenses of the policy are typically balanced out after 20 years.

What type do you need

Universal life, variable life, whole life … many different types of permanent insurance are available. So which one is right for you? It all depends on your situation. Here's a quick overview of some of the different types of life insurance policies Edward Jones offers.

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

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 financial advisor for more information about the permanent life insurance policies Edward Jones offers.  We will walk you through all of your options so you can make the right choice for your situation.

Important Information:

Edward Jones operates as an insurance producer in California, New Mexico, and Massachusetts through the following subsidiaries, respectively: 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.

Explore More Resources:

Do you have a short-term insurance need?

Term life insurance might be a better option.

Life Insurance Through Work - Is it Enough?

Before you simply “check the box” for life insurance at work, learn why employer-paid life insurance may not be enough when it comes to ensuring your family is protected from unexpected events.

Your Guide to Choosing Life Insurance

Perm or term: Which type of life insurance is right for you?

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