Permanent life insurance is a type of life insurance policy that provides lifelong protection as long as the policy premiums are paid. It differs from term life insurance, which only provides coverage for a set period of time (the “term”).

The key characteristics of permanent life insurance are:

Lifelong coverage – As long as the policy premiums are paid, coverage continues for the insured’s entire life. This is in contrast to term life insurance, which expires after the term length (e.g. 10, 20, 30 years).
Cash value accumulation – Part of the premium goes towards building up a cash value within the policy over time. This cash value continues growing as long as the policy is active.
Premiums don’t expire – Premium payments are required for the life of the policy. Premiums do not disappear after a set term.
Death benefit payout – The death benefit (face amount) is paid to beneficiaries upon the insured’s death, whenever that may be. This payout is income tax-free.
Loans and withdrawals – Most permanent life policies allow the policyholder to access the cash value via policy loans or withdrawals while still maintaining coverage (with some caveats).

The key defining feature of permanent life insurance is the lifelong coverage it provides. While term life Ally Permanent Life Insurance expires after a set period, permanent policies continue protecting the insured for their entire lifespan. This long-term coverage comes at a higher premium cost compared to temporary-term insurance.

Benefits of Permanent Life Insurance

Permanent life insurance policies provide a number of valuable benefits that make them worth considering for your financial planning needs. Here are some of the key advantages permanent life insurance offers:

Lifelong Coverage

One of the main benefits of permanent life insurance is that it provides guaranteed coverage for your entire lifetime, as long as you continue paying the premiums. This ensures that your loved ones will receive a death benefit no matter when you pass away. Term life insurance, on the other hand, is only in effect for a limited period of time.

Cash Value Accumulation

In addition to the death benefit, permanent life insurance also builds up a cash value within the policy that you can access while still living. This cash value earns interest at a rate set by the insurance company and can be withdrawn or borrowed against if needed. The cash value helps offset the higher premiums of permanent life insurance compared to term insurance.

Stable Premiums

Permanent life insurance policies come with level premiums that do not increase as you age. This allows you to lock in a predictable rate and have certainty over future costs. With term policies, premiums can rise substantially when the term period ends.

Living Benefits

Many permanent life insurance policies also include accelerated death benefits that allow you to access a portion of the death benefit while still living if you suffer from a terminal or chronic illness. This can provide funds to help pay medical bills or living expenses.

How Does Permanent Life Insurance Work?

Permanent life insurance provides lifetime protection as long as the policy premiums are paid. It works differently than term life insurance, which only provides coverage for a set period.

With permanent life insurance, part of the premium goes toward the death benefit and part goes toward building cash value within the policy. The cash value accrues on a tax-deferred basis and can be accessed through policy loans and withdrawals if needed.

The death benefit is the amount that beneficiaries receive if the insured person passes away. This amount stays level for the life of the policy.

Premiums are paid on a regular schedule, such as annually or monthly. Premiums are usually fixed, meaning they stay the same each year. However, some permanent policies allow flexible premiums within certain limits.

The cash value portion functions as a savings account and is invested by the insurance company. Returns are typically steady but conservative. The cash value grows over time and can be used for various purposes while the insured is still living.

Policyholders can take out loans against the cash value. This allows access to funds without paying taxes or surrender charges. The death benefit gets reduced by the amount of any outstanding loan balance.

Withdrawals can also be taken from the cash value. However, withdrawals that exceed the policy’s cost basis get taxed as ordinary income. Significant withdrawals can lead to the policy lapsing if the remaining cash value is insufficient to cover costs.

In summary, permanent life insurance accumulates cash value, pays out a death benefit, and allows policyholders to access funds through loans and withdrawals while living. Premiums must continue to be paid to keep the policy active.

Types of Permanent Life Insurance

Permanent life insurance policies can be categorized into several main types:

Whole life – Offers lifelong coverage as long as you pay the premiums. It has a fixed premium, death benefit, and minimum guaranteed cash value that grows over time. Whole life combines insurance protection with a savings or investment component.
Universal life – Provides flexible premiums, adjustable death benefits, and cash value accumulation. The premiums go into an account that earns interest, allowing you to vary your payments as needed. The death benefit can also be modified.
Variable life – Allows you to invest your cash value into a choice of investment subaccounts, similar to mutual funds. The death benefit and cash value fluctuate based on the performance of the investments you select. It’s considered a higher risk but with more growth potential.
Indexed life – Links the cash value growth to a market index like the S&P 500. The cash value is partly protected from losses but is able to earn interest based on index performance. The death benefit remains stable and minimum guaranteed amounts apply.

Permanent life insurance offers lifelong coverage and tax-advantaged savings benefits. Understanding the differences between policy types can help you decide which aligns best with your financial goals and needs.

Ally Financial Permanent Life Insurance</span>

Ally Financial offers both whole life and universal life insurance policies to help individuals protect their families. Ally’s permanent life insurance plans provide lifetime coverage, guaranteed death benefits, and cash value growth.

Some key things to know about Ally’s permanent life insurance:

Flexible premiums: You have flexibility in paying premiums. You can pay for life, pay over a limited timeframe, or adjust payments if needed. This makes the policies more affordable.
Guaranteed death benefit: The death benefit is guaranteed as long as you pay your premiums. Your beneficiaries will receive a tax-free payout when you pass away.
Cash value growth: A portion of your premiums go toward building cash value that you can access while living via loans or withdrawals. This gives you options if you need funds.
Customizable coverage: You can select a death benefit and premium schedule that aligns with your budget and goals. Ally offers both high and low coverage options.
Additional riders: You can add riders like waiver of premium, accelerated death benefits, and children’s insurance for added benefits.

Ally has highly rated financial strength and a reputation for good customer service. Their permanent life insurance plans offer stability, lifelong protection, and asset growth opportunities.

Ally Whole Life Insurance

Whole life insurance from Ally offers lifetime protection along with a cash value component that grows tax-deferred over time. Here are some key details on Ally’s whole life insurance offerings:

Policy Options – Ally provides both participating and non-participating whole life insurance options. Participating policies earn dividends which can be taken as cash, used to purchase additional paid-up insurance, or left to gain interest.
Premiums – Premiums are level and guaranteed. This allows you to lock in a rate that will never increase. Premiums are higher than term insurance since part goes towards building cash value.
Cash Value – The cash value grows at a guaranteed interest rate. It can be withdrawn or borrowed against for any reason. If you surrender the policy, the cash value is paid out to you.
Death Benefit – The death benefit is level and guaranteed. It will be paid tax-free to your beneficiaries when you pass away.
Riders – Ally offers several riders to customize coverage like waiver of premium for disability and accelerated death benefits for terminal illness. An accidental death benefit rider provides extra payout if death is accidental.
Pricing – Exact pricing depends on factors like age, gender, health, and coverage amount. Ally provides online quotes to see pricing options for your situation. Expect whole life to cost 4-10x more than term insurance.

Ally’s whole-life policies offer permanent lifetime insurance along with tax-deferred cash value accumulation. Adding optional riders can further customize the policy. Get a quote online to see pricing for your specific needs.

Ally Universal Life Insurance

Ally offers competitively-priced universal life insurance policies with flexible premiums and death benefit options. Universal life combines permanent life insurance protection with a savings or investment component.

With an Ally universal life policy, you can adjust your premium payments according to your budget and financial needs. As long as you pay enough to cover the monthly deductions, the policy will remain in force. You can also access the cash value that builds up in the policy over time through withdrawals or policy loans.

Some key features of Ally’s universal life offerings include:

Flexible Premiums – You choose how much and when to pay, within policy guidelines. Skip or lower payments when needed.
Stable Rates – Ally guarantees the cost of insurance rates for the first 10-20 years depending on age. Rates beyond that are set conservatively.
Multiple Death Benefit Options – Choose a level death benefit or options that increase the payout over time to help offset inflation.
Cash Value Growth – Money in the policy earns a guaranteed annual interest rate of 4-4.5%. Higher returns may be paid through dividends.
Policy Loans – Borrow against the cash value as needed. Loans accrue interest but don’t require credit checks or repayment terms.
Rider Options – Customize coverage with riders for chronic illness, disability, and more (for added costs).

Ally offers universal life insurance for terms of 10, 15, 20, or 30 years. Pricing depends on your age, health, lifestyle, and the amount of coverage you select. Talk to an Ally agent to get a customized quote for your needs and budget.

Additional Riders and Features

With Ally permanent life insurance, you can customize your policy by adding optional riders for an additional cost. Here are some of the key riders to consider:

Disability Waiver of Premium

The disability waiver of premium rider allows you to stop paying premiums if you become totally disabled. This helps ensure your policy stays in force if you can’t work due to illness or injury. With this rider, if you become disabled before age 60, Ally will waive your premium payments until you recover or turn 65.

Accidental Death Benefit

This rider provides an additional payout to your beneficiary if you die due to a covered accident. You can select an accidental death benefit amount equal to your base death benefit or less. For example, if you have a $500,000 policy, you could add a $100,000 accidental death rider.

Children’s Insurance

The children’s term insurance rider covers your kids age 15 days to 21 years old. It provides term life insurance protection for each child, generally up to $25,000 per child. The rider also includes a conversion feature so your child can convert to an individual permanent life policy without medical underwriting at age 21.

Adding supplemental riders allows you to customize your permanent life insurance to your specific needs and family situation. Work with your Ally agent to determine which riders make the most sense for you.

Is Ally Permanent Life Right for You?

Permanent life insurance can be a valuable addition to your financial portfolio, but it’s not the right solution for everyone. Here are some key things to consider when deciding if Ally permanent life insurance makes sense for your situation:

Assessing the Need for Permanent Coverage

Do you need lifelong insurance coverage? Term life insurance is generally less expensive but expires after a set period of time. Permanent life insurance continues as long as you make the premium payments.
Do you want to build cash value that you can access while living? Permanent life insurance policies build up an invested cash value component that you can borrow against or withdraw.
Do you want to leave a legacy? The death benefit from a permanent life insurance policy can be used to pay estate taxes or leave an inheritance for your heirs.

Evaluating Your Financial Situation

Can you afford the premiums long-term? Permanent life insurance costs more than term initially, so make sure the premiums fit within your budget.
What are your goals for the cash value? Project how the cash value component may grow over time and how you might use it.
How does it fit within your overall financial plan? Consider permanent life insurance as part of your broader retirement, tax, and estate planning strategies.

Assessing Your Risk Profile

What is your health outlook? Permanent life insurance requires a medical exam, so those in poor health may pay higher premiums or not qualify.
How old are you? Premiums are based partially on age, so permanent life gets more expensive as you get older. It’s generally best to apply when young and healthy.
What is your family history? If you have a family history of health issues, permanent life ensures you can get coverage now before any potential changes in health.

Carefully considering these factors will help you determine if permanent life insurance and Ally’s offerings are suitable for your needs and budget. Consult a financial advisor if you need help assessing the pros and cons.

How to Apply for Ally Permanent Life

yle=”font-weight: 400;”>Applying for an Ally permanent life insurance policy is a straightforward process. Here are the steps to take:

Get a Quote

The first step is to get a personalized quote from Ally. You can request a quote online by visiting Ally’s website and filling out the quote form. You’ll need to provide some basic information like your age, gender, health status, desired coverage amount, and more.

Within minutes you’ll receive a customized quote showing premium estimates for the different permanent life insurance products Ally offers. This allows you to compare plans and pricing.

Apply Online

Once you’ve chosen a policy, you can complete the application online through Ally’s secure website. The application will request more detailed information about your identity, finances, medical history, lifestyle, and more.

Completing the application online is fast and secure. Ally uses encryption to protect your personal data.

Submit Supporting Documents

In addition to the application, you’ll need to provide supporting documentation. This usually includes:

Photo ID such as a driver’s license
Proof of income such as a pay stub or W-2
Medical exam results
Motor vehicle records
Previous insurance policy documents

Ally provides detailed instructions for submitting these documents. You can upload digital copies directly to their website.

Schedule a Medical Exam

Ally Permanent Life Insurance applicants need to take a medical exam. This is usually a basic health screening that checks things like height, weight, blood pressure, cholesterol, and nicotine use.

Ally will coordinate the exam with a provider in your area. There is no cost to you for this exam. It usually takes less than an hour to complete.

Interview with Ally

Once your application is submitted, an Ally Bank representative will contact you for a brief interview. This is your chance to ask any questions and provide clarification.

The interview is also an opportunity for Ally to learn more about you and confirm the details you provided. Being open and honest will help ensure you get an accurate policy quote.

Contact Ally Customer Service

If you have any questions during the application process, Ally’s customer service team is available to help. You can call them at 1-877-247-ALLY (2559) or start a live chat on their website. Their team can walk you through any part of the application.

Ally Permanent Life Insurance Gives You Peace of Mind