A permanent life insurance is an insurance contract that will cover all your life. As there is a certainty of the insured dying eventually, the premium is usually higher. On the other hand, as a permanent life insurance, your rate will be determined by your age and health at the time of issuance and the appearance of a medical condition later in life will not void your contract nor increased the premium..

There are multiple sub categories in the permanent life insurance. The more common are the Whole Life and the Universal Life insurances contracts.

Whole Life premium will be constant for the rest of your life. Universal Life premium will increase when you age but will be cheaper initially when you are younger than for whole life.

Permanent Life Insurances are building cash value. It means that you can surrender the policy or withdraw money out of it. By overfunding a permanent life insurance, you can unlock many very tax-efficient, asset protected and income stream benefits for retirement or investment purpose. Please look at the overfunded permanent life insurance page.

When should you consider permanent life insurance?

When you expect that your insurance need will continue later in life and when you may not be able to receive term coverage anymore. For instance:

• to provide for special need children
• to create a college fund for your children
• to create a stream of income for retirement
• to transfer wealth to your heir tax-free
• to protect your assets against future creditors
• to increase your investment return

Most first responders" employers will pay for some basic term life insurance that may cover for funeral expenses and often up to one year of salary. While welcome, this amount is probably grossly insufficient to cover the need of your family if you were to untimely pass away. Also, once you retired, the coverage usually stops.

You may be allowed to increase the coverage by paying out of pocket additional premium. The employer group rate will often be cheaper than buying an independant outside term policy while you are employed but it may be limited in options. Also rarely does an employer offer permanent life insurance.

Having a pre-existing medical condition or being a tobaco user will usually increase the cost of insurance. Some insurance carrier will put more or less weight on some medical conditions than others. So it is important to shop with multiple insurance companies to find the best fit for your situation.

If you are looking for a term life insurance, you may find better rate with your employer group insurance offers. For the purpose of an overfunded permanent life insurance, the death benefit offered for the same amount of premium will probably be lowered, but as a whole, the cash value growth will perform similarly.

Instead of trying to buy the most death benefit for the minimum amount of premium, we are buying the minimum death benefit while paying the maximum amount of premium allowed by the IRS. Any amout of premium that is not used to pay the cost of the insurance is going to the cash value of the policy and is growing tax-free.

A properly set up maximum overfunded permanent life insurance policy should be optimized to minimize the fee based on the premium schedule that you want to contribute. Depending on the type of life insurance product used, the optimum strategy is often to plan to pay the same amount of premium for at least 5 to 7 years.

Infinite Banking, Bank on Yourself, the LASER fund, ... are branding and trademarks of concepts using permanent overfunded life insurances. Some are focused on using a specific type of product, some are more holistic in the approach of money management. But all of them are using the tax advantages of permanent life insurance contracts to provide excellent growth vehicles for your wealth.

Our company is not associated nor affiliated with any of these brands. We are looking for each client's specific needs and are not constrained by the limitations of a particular concept.