Permanent Life Insurance

Permanent life insurance provides life long protection in exchange for a level premium payment. Although life insurance is most often purchased to provide a death benefit, it can also provide living benefits. The cash value of a permanent life insurance policy grows income-tax-deferred. It can be used to provide an income stream during retirement or can help meet other long-term financial goals, such as funding a college education for a child or grandchild.

The guaranteed accessibility to the cash value makes permanent life insurance one of the most valuable assets people can own. However, the impact of taxes can make some options more valuable than others. For example, as a general rule, when policy values are surrendered, the amount received is not taxed until it exceeds the amount paid in premiums. Income tax is due on the gain.

Key Policy Features:

• Life-long coverage.
• Guaranteed level premium.*
• Guaranteed minimum death benefit.*
• Guaranteed cash values.*
• Dividends can be used to increase policy values.
• Dividends are not guaranteed.
• Underlying values are invested in the insurance company’s general account.

When to Use:

• When you need a good foundation of traditional insurance.
• When you can commit to paying an ongoing level premium.
• When you need strong policy guarantees.*
• When you want to build cash values with a conservative approach.
• When you want to be eligible for dividends. Dividends are not guaranteed and are subject to change by the Board of Trustees.
• When you want to have the option to change your policy to “paid-up.”