Not All Life Insurance Is the Same
Permanent life insurance includes different approaches based on how growth is credited. Which performs better depends on funding, time horizon, guarantees, and policy design. Our job is to run the comparison rather than assume one is inherently superior.
Whole Life Insurance
Whole Life provides a guaranteed death benefit and guaranteed minimum cash value growth, with the potential for non-guaranteed dividends. When structured correctly, it can also offer premium flexibility. It may suit someone who values strong guarantees and a stable growth trajectory alongside the rest of the plan.
Indexed Universal Life
IUL combines a death benefit with cash value growth linked to a market index and protected by a floor, commonly 0%, so the account is not directly exposed to market losses. Growth is limited by contract terms such as a cap, participation rate, or spread. Policy costs and performance require ongoing attention.
Other Permanent Structures
Guaranteed Universal Life: Primarily designed to provide a guaranteed death benefit, usually with limited cash value accumulation.
Variable Universal Life: Uses market-based subaccounts, meaning cash value can decline. It is not a structure we typically use, but we can explain how it compares.
How We Determine What Is Right
We do not start by assuming that you need permanent life insurance or which kind. Discovery clarifies the purpose—family protection, estate liquidity, supplemental tax-advantaged retirement income, business succession, or tax planning—and points toward the structure that best fits.
Long-Term Care Options
Many policies can include riders that allow part or all of the death benefit to be used for qualifying long-term care expenses. This can give one policy two potential jobs: protection for your family and a source of funds for care. We walk through whether this structure belongs in your overall plan.