Is It Worth Getting Permanent Life Insurance?

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If you’re considering life insurance, you may be wondering if it’s worth getting permanent life insurance. Permanent life insurance is a policy that provides lifelong coverage and offers more flexibility in paying premiums and gaining access to cash value. While these policies are usually more expensive than term life insurance, they offer lifelong death benefits and can be used to supplement retirement income, pay off debt, or fund other long-term goals.

Types of Permanent Life Insurance Policies

There are four popular types of permanent, cash-value life insurance policies:

Type Description
Whole Life Insurance Provides coverage for the policyholder’s entire life, combines an investment component with the policy’s death benefit, and offers tax-advantaged savings and guaranteed death benefit payout.
Universal Life Insurance Offers flexible premiums, death benefit options, and cash value accumulation, allowing policyholders to adjust their coverage as their needs change over time.
Variable Universal Life Insurance Combines the benefits of whole life and term insurance, with personalized coverage options and investment opportunities, allowing policyholders to adjust their premium payments, death benefit amount, and investment portfolio.
Indexed Variable Universal Life Insurance Combines the benefits of universal and variable life insurance, with a cash value that can be linked to market performance, and offers flexible premium payments, death benefits, and additional coverage options.

When to Get Permanent Life Insurance

The best age to get permanent life insurance is usually between 30 and 50, as premiums are typically lower and you’re more likely to be healthy during this period. However, the right time for you may vary depending on your financial situation and goals. If you’re over 50, it’s still possible to get permanent life insurance, but premiums may be more expensive. Consult with an experienced financial adviser to determine the right time and policy for your needs.

Benefits and Drawbacks of Permanent Life Insurance

Permanent life insurance can provide lifelong coverage and offer many benefits, such as building cash value and protecting your family during death. However, these policies can also have higher premiums, lower liquidity, and may not provide sufficient returns. It’s essential to consider the drawbacks and benefits when deciding whether to invest in permanent life insurance.


Permanent life insurance can be an excellent investment and provide many benefits, but it’s essential to understand the features and weigh the risks against the rewards. Consider your financial situation and goals and consult with an experienced financial adviser to determine if permanent life insurance is worth it for you.

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