What is permanent life insurance?
Permanent life insurance is long-term protection that can last for your lifetime, as long as premiums are paid. Most permanent policies have the ability to build cash value.
Why choose permanent?
Permanent life insurance is ideal for protection and coverage needs without a specific end point. It can help your family, your business, and you.
With a policy in place, your beneficiaries will receive a typically tax-free death benefit when you die—whenever that may be (per IRC §101(a)).
Who can take advantage of your policy?
What are the differences among permanent policies?
The main differences between permanent policies lie in their potential to build cash value and how they earn interest. Here’s some quick insight.
Universal life insurance
Enjoy flexible premium payments and coverage amounts.
Indexed universal life insurance
Experience protection plus potentially greater growth while risking a lower rate of return.
Indexed variable universal life insurance
A policy that can provide a death benefit as well as cash value growth potential through underlying investment options and index crediting strategies.
Variable universal life insurance
Manage your policy to balance the greatest growth potential through underlying investment options, which don’t offer downside protection.
Survivorship or second-to-die insurance
A single policy covers two people and pays the death benefit after both have died.
Cash value sounds good, but how does it work?
When you pay premiums, a portion is used to cover the cost of your insurance and policy fees; the rest goes toward your cash value account.
Any cash value that accumulates is tax-deferred, for as long as the policy is in force. The growth potential varies based on the type of policy.
Prudential offers a range of policies and riders to meet your needs.
Footnote
1 You can access your cash value through loans and withdrawals. In general, loans are charged interest; they are usually not taxable. If a policy lapses or is surrendered, the loan becomes immediately taxable to the extent of gain in your policy. Withdrawals are taxable only when you take more money out of the policy than you’ve paid in premiums. If your policy becomes a Modified Endowment Contract (MEC), different, less advantageous tax provisions apply. Loans and withdrawals may reduce or eliminate the death benefit payable to your beneficiaries.
Disclaimer
Guarantees are based on the claims-paying ability of the issuing insurance company and do not apply to the underlying investment options.
Life insurance is issued by The Prudential Insurance Company of America, Pruco Life Insurance Company (except in NY and/or NJ), and Pruco Life Insurance Company of New Jersey (in NY and/or NJ). Variable universal life policies are offered through Pruco Securities. All are Prudential Financial companies located in Newark, NJ, and each is solely responsible for its own financial condition and contractual obligations. Our policies contain exclusions, limitations, reductions in benefits, and terms for keeping them in force. A financial professional can provide you with costs and complete details.
For variable policies, please consider the investment objectives, risks, and charges and expenses carefully before investing in the contract and/or underlying portfolios. The initial summary prospectus for the contract and the prospectus or summary prospectus for the underlying portfolios (collectively, the “prospectuses”) contain this information as well as other important information. You can obtain a copy of the prospectus here. You should read the prospectus carefully before investing.
It is possible to lose money by investing in securities.
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