IFW Weekly Wisdom Videos

What Are The Advantages & Disadvantages of Permanent Insurance?

There are some great attributes to permanent life insurance, and a couple of things you want to make sure you are aware of.


1. Tax efficiency- The cash value in permanent life insurance not only grows tax-deferred, it could be accessed tax-free as well.

2. It can be used as a safe bucket when your investment account is down in value and avoids having to sell securities that are down in value

3. The use of funds from permanent life insurance do not count toward making your social security taxable or your medicare premiums increasing.


1. You have to be careful not to overcommit as there are penalties if you cancel the policy early.

2. The design of the policy needs to be done with precision so you get the most value.

Remember when it comes to financial decisions, never say never, never say always…it depends.

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