Bruce Sackrison

Bruce Sackrison is a Napa Valley Register columnist who will write about property and casualty insurance matters.

This week, I’ll talk about why permanent life insurance is a great solution for many people.

What is permanent life insurance?

A permanent life insurance plan is just that... permanent.

It’s not the policy you date for a while; it’s the policy that you marry.

It will provide a death benefit when you are 35 years old, and also guarantee that you still have that same death benefit at age 85.

How does it do this? Simple. It’s composed of two parts that work together:

First, it has a death benefit that has an increasing internal cost to it as you get older.

Second, it has an internal cash-value accumulation that grows each year.

That increasing cash value grows internally and automatically pays for the rising cost of your insurance as you get older. It offsets the cost of the death benefit, and it grows additional cash value as well.

So... premiums stay level, and you build cash value too!

What are some of the advantages of permanent life insurance?

Let me talk about just three of my favorite things that permanent life insurance can do for you.

There are more, but my editor won’t let me write 12,000 words (lol), so here we go:

1. You have a lifelong dependent child or grandchild.

How will they be cared for after you are gone? If you have a special-needs dependent, their financial needs are permanent.

So, your life insurance should be too. Term insurance is simply inadequate for this lifetime need.

You can create a special-needs life insurance trust that would be funded by your permanent life plan.

You’ll need to bring in a team to do this right; you’ll want your life insurance agent working with your accountant and attorney to make sure you’ve covered all the bases.

2. You own a business, or significant real estate and only one of your children wants to inherit it.

How do you make everything equal and fair?

Simple. You work with your life insurance agent to set up the beneficiaries properly so that the children who are not inheriting the business receive the equivalent of their fair share of the business.

There are many ways that your permanent life insurance plan can accomplish fairness in an inheritance situation. Make sure you explore all of your options with your life insurance agent.

3. You want to leave a financial legacy... no matter what.

A permanent life insurance plan guarantees that even if you spend and enjoy your retirement savings, and even if you live to a ripe old age, you’ll still be able to leave a financial legacy for people or causes that are dear to your heart.

Life insurance can fund college for the grandkids.

It can help family through tough times. It can advance a cause that you’ve devoted your life to. It can do amazing things.

But it can only leave a legacy if it’s in force no matter when you die.

This is why I love permanent life insurance so much. It will be there when you need it most.

And this is why permanent life insurance is here to stay.

How can I know which plan is right for me?

Talk to your trusted insurance agent. Find out if they have experience to walk you through the complex choices you have.

Permanent life insurance is a valuable tool, but it needs to be handled with care. It needs experience to do it right.

If you don’t have an agent to help with life insurance planning, I’d be glad to answer any questions you have. Call or email me.

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Bruce Sackrison is an insurance property and casualty broker affiliated with Professional Insurance Associates. He is at 707-931-0186 or bruces@sackifs.com.