Understand the benefits of permanent life insurance.


new-york-lifePermanent life insurance can provide you and your family with longstanding benefits that ultimately provide a greater sense of protection and financial security. Here’s an overview of the ways that a permanent life insurance policy can be a valuable option for you and your family.

While the primary purpose of life insurance is to protect loved ones in the event of your death, permanent life insurance offers other financial benefits that may be extremely helpful with everyday expenses. One of the larger financial perks of purchasing a permanent life insurance policy is the cash value accumulation component, which guarantees[1]  cash value accumulation on a tax-deferred basis. This cash accumulation is often referred to as a “living benefit” since it is a benefit you can enjoy during your lifetime. As long as your premiums are paid, the cash value that builds in your policy accumulates on a tax-deferred basis and can be borrowed against[2]   generally income tax-free.

That money can be accessed via policy loans for virtually anything, such as funding a child’s college education, supplementing your retirement income as the life insurance needs decrease, or even ensuring the continuation of a personal business you’ve worked hard to build. Moreover, some permanent life insurance policies may be eligible for dividends[3]  which may be used to help pay premiums or purchase additional insurance.

Stay safe and secure.

Unlike permanent life insurance, which is in place for your entire life, term life insurance generally provides a tax-free death benefit for a specific length of time. When the term expires, so does your protection. While you may be able to renew it, your health may have changed and the rates may be higher. While term insurance may initially offer more affordable premiums, permanent life insurance provides a lifetime of protection and value. Your premium stays the same regardless of your age or health conditions, and the policy is more likely to be in force when your family needs it most.

Now is the time.

It’s always a good time to protect your family. But it’s even more important to make sure they’re protected when other assets can’t be counted on. That’s why permanent life insurance is so valuable—its cash value is guaranteed to accumulate each year, regardless of the economic environment.

This educational, third-party article is provided as a courtesy by Frank F. Malpartida, Agent, New York Life Insurance Company. To learn more about the information or topics discussed, please contact Frank Malpartida at (305) 798 7500 or via e-mail: ffmalpartida@ft.newyorklife.com


[1] Guarantees are backed by the claims-paying ability of the issuer.

[2] The cash value in a permanent life policy is accessed through policy loans, which accrue interest at the current rate and decrease the available death benefit and cash value.

[3] Dividends are based on the policy’s applicable dividend scale, which is neither guaranteed nor an estimate of future results.


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