Permanent life insurance

If you have long-term needs and the cash to pay the annual premiums, permanent life may be right for you.

  A senior couple walk down the street with ice cream cones.

Life insurance is a vital part of any financial strategy. The type you choose will depend a lot on your goals. If those goals include having coverage that lasts your entire lifetime, permanent insurance might be the best choice for you. Unlike term life insurance, which only covers you for a specific time frame (typically 20 years or less), permanent insurance stays in force for life—as long as you continue to pay the premiums.

How it works

With permanent life insurance you can transfer a death benefit to your beneficiaries free from federal income taxes. Some plans also allow you to build equity, or cash value, on a tax-deferred basis. This type of life insurance is best suited for individuals or business owners with long-term life insurance needs.

How much you need

The amount you need really depends on your financial goals. No two individuals' life insurance needs are the same. Your financial advisor will look at your entire financial picture to help you calculate the right amount for your situation. Factors could include: What you've already saved, what you're trying to save and what you want to leave behind.

Over time your needs and goals will change. Even if you have coverage in place today, it's important to review it with your financial advisor periodically, particularly after the addition of a child, change in marital status, a change in home ownership or when changing jobs if your policy was provided through your employer.

What you can expect to pay

Because of the lifetime benefits it provides, permanent insurance can be three to five times higher, on average, than a term policy. The primary reason for this is that unlike term life insurance, which only covers you for a set period of time, with permanent insurance you have coverage for as long as you pay your premiums. The amount you pay can be based on your age, gender, health and the type and amount of coverage you choose. Permanent insurance premiums are generally level, and expenses of the policy are typically balanced out after 20 years.

What type do you need

Universal life, variable life, whole life … many different types of permanent insurance are available. So which one is right for you? It all depends on your situation. Here's a quick overview of some of the different types of life insurance policies Edward Jones offers.

Type

 

 

 

Universal Life

Guaranteed Universal Life

Variable Universal Life

Guaranteed Variable Universal Life

 

Guaranteed

Death

Benefit

 

No

Yes

 

No

 

Yes

 

 

 

Can

Build

Cash

Value

Yes

No

 

Yes

 

Yes

 

 

 

Flexible

Premiums

 

 

Yes

No

 

Yes

 

No

 

 

 

Potential

Risk/

Reward

Greater 

No

No

 

Yes

 

Yes

 

 

 

Why permanent life insurance from Edward Jones

Each type of life insurance offers benefits and trade-offs. What's appropriate for you will depend on your long-term goals. That's why it's important to work with someone who spends time getting to know you. Contact your local Edward Jones financial advisor for more information about the permanent life insurance policies Edward Jones offers. We'll walk you through all of your options so you can make the right choice for your situation.

Important Information:

Edward Jones is a licensed insurance producer in all states and Washington, D.C., through Edward D. Jones & Co., L.P., and in California, New Mexico and Massachusetts through Edward Jones Insurance Agency of California, L.L.C.; Edward Jones Insurance Agency of New Mexico, L.L.C.; and Edward Jones Insurance Agency of Massachusetts, L.L.C.