Life insurance products
There are two basic types of life insurance to plan for life’s needs and goals, term life and permanent life. An easy way to understand the difference is to look at the names themselves. Term is a time-based solution similar to “renting” – as it runs out on a given date. Permanent is a lifetime solution similar to “owning” – as it stays with you, grows in value and can be used throughout your life.
Term Life Insurance
Permanent life insurance
Refer to the chart below for more information on the differences between Term and Permanent life insurance.
|Main Purpose||Short-term protection needs||Long-term protection plus cash value accumulation to meet financial needs and goals|
|Coverage Duration||Limited time-generally 5 to 30 years. Work coverage typically ends when employment does.||Lifetime coverage as long as premiums are paid|
|Builds cash value||Not applicable||Accumulates cash value on a tax-deferred basis|
|Access to Cash Value||Not applicable||Yes*|
|Cost||Lower in early ages, increases with age, policy length and health changes.||Initially higher than term, but becomes more cost effective than term as you age.|
Annuities are investment options designed to grow funds and then provide a stream of payments to the investor at a later time. They are the protect and spend portion of a financial plan and are commonly used as a way to secure a steady cash flow for retirement.
Penn Mutual offers variable annuities that can be structured in ways to suit your specific needs.