Permanant Life Insurance

Permanent Insurance provides coverage for the duration of your lifetime. It also includes a savings feature - in the form of cash value - that may be collected, borrowed, used to pay premiums, or even used as collateral for a loan. Permanent Insurance is intended for long-term coverage and typically takes a few years to build cash value. There are also variations of permanent life insurance.

Whole or Ordinary Life Insurance is the most common form of permanent life insurance. It features a pre-determined death benefit and constant premiums that are paid for the duration of the policy. The cash value builds at a fixed interest rate. Because the premium does not change, whole life coverage usually costs more than a comparable Term Life Insurance policy in the early years. However, in later years, it usually costs less than the same comparable Term Life Insurance policy.

Universal Life Insurance has an initial payment, followed by flexible premium payment frequency and amounts. Premiums are placed into an account that earns interest, and policy charges are deducted from this account. If the charges exceed premiums paid, the death benefit can be decreased or even end without an increase in premiums. The cash value is dependent upon premium investments. Universal Life Insurance is generally less expensive than Whole Life Insurance because of premium flexibility - but the varying face amount and cash value can make it a less popular choice for some people.

Fixed-Indexed Universal Life Insurance is a variant of Universal Life Insurance that gives the security of Universal Life while offering an even greater potential for returns. Because the cash value is guaranteed to stay at or above a certain point, your investment can grow without the risk associated with directly investing in the stock market.

Please Contact Stellar Insurance Services to get quotes or more information.