Metlife's Permanent Life Insurance: What You Need To Know

Life insurance is a protective policy that pays out a sum of money to the insured's beneficiaries after they have passed away. There are two main types of life insurance: term life insurance and permanent life insurance. Permanent life insurance, also known as whole life insurance, is offered by MetLife and provides lifetime protection. It is intended to protect your loved ones permanently, as long as you continue to pay your premiums. Some permanent life insurance policies accumulate cash value, which can be used for a variety of purposes. This type of policy is typically portable, so coverage can continue if employment terminates. MetLife offers different types of permanent life insurance, including Group Variable Universal Life and Group Universal Life.

MetLife's permanent life insurance policies

MetLife offers permanent life insurance policies, also referred to as whole life insurance. These policies do not expire and are intended to provide lifelong protection for your loved ones, as long as you continue to pay your premiums.

Whole life insurance policies typically come with guaranteed level premiums, meaning the amount you pay will never change. These policies also pay death benefits and may accumulate cash value over time, which can be accessed via loans or withdrawals. This cash value can be used for a variety of purposes and can help you achieve your financial goals.

There are two main types of permanent life insurance policies offered by MetLife: Group Variable Universal Life (GVUL) and Group Universal Life (GUL). GVUL combines life insurance protection with tax-deferred investment options, allowing you to invest additional money above the cost of insurance into variable investment portfolios or an interest-bearing account. GUL, on the other hand, provides affordable and guaranteed protection, allowing you to build the policy's cash value by contributing additional funds into a tax-deferred interest-bearing account.

When considering a permanent life insurance policy, it's important to keep in mind that these policies tend to be more expensive than term life coverage. However, they offer flexibility if you leave your employer, as you can typically take your coverage with you. Additionally, permanent policies provide a tax-deferred investment opportunity, allowing you to contribute more money to your coverage on a tax-favoured basis.

Permanent life insurance benefits

Permanent life insurance offers a range of benefits that make it a compelling option for individuals seeking comprehensive financial protection for their loved ones. Here are some key advantages of permanent life insurance policies:

Lifelong Coverage

Permanent life insurance policies, such as whole life and universal life insurance, are designed to provide coverage for an individual's entire lifespan, as long as the premiums are paid. This means that beneficiaries will receive a death benefit regardless of when the insured person passes away. This can be especially important for individuals who want to ensure their loved ones are financially secure for the long term.

Cash Value Component

Most permanent life insurance policies have a cash value component that grows over time. This cash value can be borrowed against or withdrawn, providing a source of funds for various purposes, such as paying off debts or covering expenses. The cash value aspect also offers financial flexibility and can be used to diversify an investment portfolio.

Tax Advantages

Permanent life insurance offers several tax benefits. The cash value of these policies typically grows tax-deferred, similar to gains in a retirement account. Additionally, there are usually no income taxes on dividends or when surrendering coverage, unless the amount received exceeds the total premiums paid. Policy loans are also generally not taxed as long as the policy remains in force.

Stable Premiums

Unlike term life insurance, permanent life insurance premiums generally remain level throughout the insured's lifetime. This provides stability and predictability, making it easier for individuals to plan their finances without worrying about increasing premiums over time.

Financial Stability for Dependents

Permanent life insurance can provide financial stability for dependents, such as a spouse or children, who rely on the insured person's income. It ensures that they will have the financial resources they need to maintain their standard of living, cover basic living expenses, and fund important milestones like education or retirement.

Peace of Mind

Permanent life insurance offers peace of mind, knowing that your loved ones will be taken care of even if you are no longer there to provide for them. It provides confidence that financial obligations will be met and that your family will have the economic means to cope with short-term and long-term expenses.

Permanent life insurance vs. term life insurance

Life insurance is a cost-effective way to protect your family and finances. It ensures that your family will be financially secure if something unexpected happens to you. There are two main types of life insurance: term and permanent. Both types of insurance are available through MetLife.

Term Life Insurance

Term life insurance is temporary and covers a specific period, typically between one and 30 years, or until a particular age. It pays a lump sum to your loved ones if you die during the coverage term, provided the policy is up to date and premiums have been paid. Term life insurance is generally more affordable than permanent life insurance, especially when purchased early in life. It is a good option for those who need short-term coverage or additional protection during specific times, such as when starting a family or buying a home. Term life insurance is also a good choice for those on a budget or those who want flexibility in their coverage.

Permanent Life Insurance

Permanent life insurance, on the other hand, lasts your entire life, as long as you continue to pay the premiums. It does not expire and provides lifelong protection. Permanent life insurance tends to be more expensive than term life insurance, but it offers additional benefits. One key advantage is the cash value component, which allows you to build wealth over time. The cash value grows tax-deferred and can be accessed while you are alive, providing a valuable financial tool. Permanent life insurance is a good option for those who want long-term financial protection, wish to create an inheritance for their heirs, or want a tax-advantaged way to save for future expenses.

MetLife's Offerings

MetLife offers both term and permanent life insurance options. Their term life insurance provides coverage for a specified period, usually one to 20 years, and includes the option to port your policy to a new company if you leave your employer. MetLife's permanent life insurance options include Group Variable Universal Life and Group Universal Life. These policies offer financial protection and the opportunity to build cash value through tax-advantaged investments.

Permanent life insurance costs

Permanent life insurance is generally more expensive than term life insurance. This is because it lasts a lifetime and includes a cash value component that allows you to borrow against your policy or withdraw funds later in life. The cash value of permanent life insurance grows each year, tax-deferred, until it matches the face value of the policy.

The cost of permanent life insurance will depend on a variety of factors, including:

• Age: Younger people tend to pay less for life insurance because their life expectancy is higher.
• Gender: Women typically pay less than men of the same age and health because women generally have a longer life expectancy.
• Smoking status: Smokers pay more for life insurance because they are at a higher risk of developing health issues.
• Health: Pre-existing conditions, blood pressure, and cholesterol levels can all impact the cost of permanent life insurance.
• Family medical history: A history of serious health conditions in your family can result in higher rates.
• Driving record: A history of DUIs, DWIs, or major traffic violations can lead to higher rates.
• Occupation and lifestyle: High-risk jobs or dangerous hobbies can increase the cost of permanent life insurance.

It's important to note that permanent life insurance rates can vary across different insurance providers, so it's recommended to compare quotes from multiple insurers to find the best option for your needs.

Permanent life insurance considerations

Permanent life insurance, also known as whole life insurance, is a type of insurance policy that provides coverage for an individual's entire life, rather than for a specified period. Unlike term life insurance, permanent life insurance policies do not expire as long as the insured individual continues to pay their premiums. This type of policy is designed to protect your loved ones financially after your death, no matter when that may be.

One of the key considerations of permanent life insurance is its ability to accumulate cash value over time. This means that the policyholder can contribute additional money above the cost of the insurance, which can grow as a tax-deferred investment. This cash value can be accessed by the policyholder during their lifetime through loans or withdrawals and can be used for various purposes, such as supplementing retirement savings or funding a child's education. However, it is important to note that withdrawing or taking loans against the policy will reduce the death benefit and cash value of the policy.

Another consideration is the flexibility that permanent life insurance offers. These policies are typically portable, meaning that coverage can continue even if the policyholder changes employers or retires. This is especially useful for individuals who want to ensure their loved ones are protected regardless of their employment status. Additionally, permanent life insurance policies offer level premiums, which means that the premium amount will stay the same each year, providing stability and predictability for the policyholder.

When deciding whether permanent life insurance is the right choice, it is important to consider the current cost. Permanent life insurance tends to be more expensive than term life insurance, as it provides lifetime coverage and the potential for cash value accumulation. However, the higher cost may be worth the peace of mind that comes with knowing your loved ones will be financially protected, no matter what.

It is also worth noting that permanent life insurance policies may offer guaranteed issue coverage, which means the policyholder can obtain a certain level of coverage without answering health questions or undergoing a medical exam. This can be advantageous for individuals with pre-existing health conditions or those who do not want to undergo a medical evaluation.

Frequently asked questions