Hi everyone,

I talked a little bit about term life insurance a couple of weeks ago and how important it is to have it if you have dependents. Let me talk about permanent life insurance today.

Permanent life insurance is a tax deferred investment vehicle that also has life insurance attached. For many young people who need the life insurance protection for their dependents, the amount of coverage needed is usually not affordable for them by using a permanent life scenario.

So who should use it. Well, I am not too fond of them because of their high cost, but here are two potential candidates:

• Looking for ways to pay the estate taxes down the road, this could be a way to do it if you plan early.
• If you have exhausted all tax deferred investment vehicles available to you, and also have a considerable amount of savings in a taxable account, this can be a further route.

I don’t recommend these hardly ever to my clients, as I feel there are many other alternatives available at a much lower cost.

Patrick