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There is a life insurance route made for every walk of life. However, there is a specific type of policy known as permanent life insurance that may meet your needs. These types of life insurance plans never expire, so they will last the entire life of the policyholder, as long as the premiums are paid.1 Read on to find out how permanent life insurance works, the different types of policies, and what Aflac has to offer.
Permanent life insurance plans usually have the basic components of other types of life insurance policies, like the death benefit and some type of savings element.1 The name refers to the fact that these policies are meant to last indefinitely, or until the policyholder passes.
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There are a few different ways one can secure a permanent life insurance policy. First, you must determine which type of plan makes the most sense for your unique needs. Aflac does not offer universal life insurance, but we do offer portable whole life insurance plans that can help meet your personal needs, and the ability to skip a medical exam.
A common type of permanent life insurance is whole life insurance. Aflac offers whole life insurance that lasts the policyholder’s entire life, builds cash value in a secure account, and has regularly scheduled premiums to keep the policy active.
Another type of permanent life insurance policy is universal life insurance. The main difference between whole and universal life insurance is that premium payments can be adjusted over time with universal life insurance. You may be able to scale your rates down or skip a payment if you need to pay for other large expenses, like college tuition or a mortgage. This benefit can give you greater flexibility, but it may negatively impact the cash value of your plan and your premiums could eventually go up over time.2
In these life insurance plans the beneficiary only gets the death benefit when the policyholder passes.2 Universal life insurance may be particularly helpful if you are able to work with a financial professional that can help you determine how to best invest your cash value. The two types of universal life insurance are indexed and variable.3
Aflac does not offer universal life insurance, but we can point you toward our whole life insurance policy if you have different coverage goals in mind. Chatting with an agent about your options can make this decision easier.
Variable universal life insurance has flexible premiums and a savings component, but more factors influence how the savings can grow. The savings portion, or cash value, grows based on the investment methods that you choose.4
There is usually a minimum and maximum growth rate allowed in this type of permanent life insurance policy. More variables lead to more risk but can also lead to more reward.4
The second type of universal life insurance is indexed universal life insurance. This type of policy has the same basic parts as a permanent life insurance policy, but the cash value grows based on a chosen stock market index.3 If the chosen index is performing well, the account will grow. If not, some companies allow it to grow at a minimum rate.3
Like all life insurance plans, permanent life insurance costs depend on a variety of factors like age, medical history, family size, and location.
The main benefit of permanent life insurance is that it lasts through the policyholder's entire life cycle. On the other hand, term life insurance only lasts for a specific amount of time and is typically less expensive.5 This policy may be a good option if you have an idea of how long you’ll need life insurance coverage.
Some of the major pros of permanent life insurance are that it offers a cash value component and lasts indefinitely. Permanent life insurance plans also offer a handful of retirement planning benefits that may make sense for you.
If you are looking for life insurance with permanent qualities, like our whole life insurance plan, you’ve come to the right place. Our whole life plans offer lifelong, lasting coverage at competitive rates and high-growth potential. Chat with an Aflac agent to see if this is the right choice for you.
1 Investopedia. Permanent Life Insurance: Definition, Types, and Difference from Term Life Updated June 21, 2023. Accessed March 13, 2024. https://www.investopedia.com/terms/p/permanentlife.asp.
2 Investopedia. What Is Universal Life (UL) Insurance? Updated February 29, 2024. Accessed March 13, 2024. https://www.investopedia.com/terms/u/universallife.asp.
3 Investopedia. Indexed Universal Life Insurance (IUL) Meaning and Pros and Cons. Updated February 12, 2024. Accessed March 13, 2024. https://www.investopedia.com/articles/personal-finance/012416/pros-and-cons-indexed-universal-life-insurance.asp.
4 Investopedia. Variable Universal Life (VUL) Insurance: What It Is, How It Works. Updated September 27, 2023. Accessed March 13, 2024. https://www.investopedia.com/terms/v/variableuniversallife.asp.
5 Investopedia. Term Life Insurance: What It Is, Different Types, Pros and Cons. Updated January 11, 2024. Accessed March 13, 2024. https://www.investopedia.com/terms/t/termlife.asp.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York. 68000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. 65000 series: In Virginia, Policies ICC0965JTO & ICC0965JWO. B61000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B61JWO & ICC18B61JTO. In Delaware, Policies B61JWO, B61JTO. B60000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q60000 series/Whole: In Arkansas & Delaware, Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Not available in Virginia. Q60000 series/Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C. Not available in Virginia.
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY or VA. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations, and exclusions.
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