So what is permanent life insurance, anyway?
You likely know one of the main benefits: That it provides (tax-free) money to your loved ones when you die. But permanent life insurance can help you live, too (Yeah, really.):
- It can help you save for the unexpected. A portion of the premium for permanent life insurance goes toward the cash value, which can grow over time. And, you don’t pay taxes as the money grows.
- Over the long term, you can withdraw this money—and use it for things like your kids’ college education, home improvements, or supplemental retirement income.1
Do I need life insurance now?
It’s never too early to get life insurance (and it’s not just for people with kids). It benefits you no matter what stage of life you’re in. Here’s how:
- The younger (and healthier) you are when you buy it, the lower your cost will be. And there’s flexibility, too. You have to pay a minimum amount to keep your coverage (permanent life insurance doesn’t expire as long as you pay your premiums). As your budget allows, you can pay (and save) more—or go back to a minimum payment when you need to.
- The earlier you buy a policy, the more time you’ll have to grow the cash value. That means you’ll have more to put toward the people and things you love later on.
- Because you’ll have a backup plan for the unexpected, you won’t have to pull from savings.