Permanent Life Insurance

Cash Values – Transferrable

Policy Details

Permanent life insurance is designed to cover you for your entire life, taking the worry out of maintaining coverage in your later years, or leaving an inheritance to your loved ones.

The cash value as a tax-free savings, or investment opportunity is one of the more common reasons people choose permanent life insurance policies. Each month, a portion of your permanent life insurance premium goes toward an ever-growing cash value (similar to a home mortgage) that can even be borrowed against, depending on the policy. It does typically cost more than term life insurance policies, however, and can feel more complicated to shop for and maintain, as well.  CALL for more policy info…

Frequently Asked Questions

A death in the family is not only emotionally devastating, it can also take a tremendous toll on the future financial security of a family. Suddenly, without the deceased’s income, paying the mortgage or providing for a child’s college education may become much more difficult.

Those who buy life insurance do so to help ensure their loved ones are taken care of financially. Life insurance is a promise by an insurance company to pay those who depend on you a sum of money upon your death. In return, you make periodic payments called premiums. Premiums can be based on factors such as age, gender, medical history and the dollar amount of the life insurance you purchase.

In the event of your passing, life insurance provides money directly to the individuals you select, your beneficiaries, who can use the money as they see fit, including:

  • Replacing lost income
  • Covering basic living expenses
  • Paying household debts, estate taxes and funeral expenses
  • Funding a child’s education
  • Supplementing retirement savings

While you won’t be able to pinpoint the amount you’ll need to the penny, you can make a sound estimate.  Your goal should be to develop a life insurance plan that, following your death, will allow your family to live comfortably without your economic contribution. Also consider the effect of inflation over time. The amount needed for retirement or college 20 years from now is likely to be significantly higher than today.

To estimate the amount of life insurance your family would need, first calculate everything you now provide for your family including:

  • Salary
  • Benefits/health insurance
  • 401(k) and retirement savings
  • Personal services you perform for your family, such as child care, cooking, home maintenance, etc.

Then, subtract your personal expenses including:

  • Annual spending on personal needs, such as food, clothing, entertainment, etc.

It depends. The period of time you’ll need coverage for should be the main factor. For example, if you have young children, you may want to consider 20 or 30 years of term life coverage to help your children for college or other future financial endeavors. On the other hand, if your children are out of college and supporting themselves, a shorter coverage period might suit your needs better.

Life insurance through your workplace may be more affordable than you think. In fact, many people can get term life insurance coverage from a quality company for a surprisingly low price.4

Premiums are typically based on factors such as:

  • Age, sex, height and weight
  • Health status, including whether or not you smoke
  • Participation in high-risk occupations

Life insurance gets more expensive as you get older, and the type of coverage you choose will also affect your premium. Rates for term insurance are typically lower, while rates for permanent policies are typically higher.

To keep your premiums as affordable as possible and save money in the long run:

Buy it now. Premiums for the same coverage generally increase the older you become. And the longer you wait, the more you risk developing a health condition that could increase your premium further, or make you uninsurable.

If you want permanent life but you’re on a budget, consider some term for now. You can save money initially by buying some term life in combination with permanent life. Then later, if your budget increases, consider converting the term policy to permanent life.1

Consider group life insurance offered through your employer. It may be available at a relatively low cost. But keep in mind that your group coverage may end or become more expensive when you leave your job or as you get older.

Death benefits are generally received income tax-free by your beneficiaries. In the case of permanent life insurance policies, cash values accumulate on an income tax-deferred basis. That means you would not have to pay income tax on any of the policy’s earnings as long as the policy remains in effect. In addition, most policy loans and withdrawals are not taxable (although withdrawals and loans will reduce the cash value and death benefit).

It’s a good idea to review your coverage every few years to make sure it still meets your financial needs. Check to make sure that all information including your beneficiaries, is current. It might be time to re-evaluate your coverage if you:

  • Recently married or divorced
  • Received an inheritance
  • Purchased a new home
  • Refinanced your home mortgage in the past six months
  • Have a child or grandchild who was recently born, adopted or about to enter college
  • Provide care or financial help to a child or parent
  • Want to ensure that financial resources are available for a loved one’s assistance or long-term care

To make sure your benefits are distributed to those you intend, you must select a beneficiary – the person (or persons) who receive the proceeds of your life insurance policy when you die.

Without a validly named beneficiary, the life insurance proceeds will be distributed according to the terms of the insurance contract. This may result in proceeds going to family members such as spouse, children, parents or siblings, or it may go to your estate.

Review your beneficiary choices yearly to make sure they are current and to avoid unwanted outcomes or probate. Consider changes in marital status, deaths or other life changes that may impact your beneficiary designation, and update accordingly.

Policy owner
The policy owner is the person who owns the life insurance policy. In many cases, the policy owner is also the person who is insured by the policy. However, the policy owner may also be a relative of the insured, a trust, partnership, or a corporation.

A beneficiary is the person(s) selected by the policy owner to receive the life insurance payments upon the death of the insured.

Premiums are the payments made to the insurance company to purchase and keep a policy active.

Death benefit
A death benefit is the amount paid to the beneficiary at the time of the death of the insured.

Face amount
The face amount of the policy is the amount of the death benefit as stated in the policy. This does not include additional amounts that the policy may provide.

Insured/insured life
Insurability refers to how likely an applicant is to be offered coverage based on current health, medical background, family history and other factors.

Did you know that term insurance rates are the same no matter where you buy your policy?

Many people think it’s easier to deal with the online brokers, when in reality, their call center environments don’t lend themselves to developing relationships with clients and families.

The turnover rate is quite high at these places, so there’s a good chance you won’t speak to the same representative who sold you your policy.

We have over 30 years of experience and can help you figure out just where this life insurance thing makes sense.

We’re waiting for your call

It’s easy to contact us! Simply call, email, or fill out a form and we’ll quickly reach out to you accordingly!

Chris Acker

Your Agent

Life insurance on your terms.

Chris Acker has been helping individuals and families in California with their insurance needs since 1985. Since becoming independent in 1998, Chris’s no-pressure business style & dedication to the community has made CB Acker & Associates one of the most respected in the insurance industry. Read more…


Here’s what our happy clients have to say about our services:

Sanjeev Dharap


We have trusted Chris with all our insurance needs for several years. He always listens and understands our needs completely and then works hard to design a policy that best fits our needs. He is very personable and easy to work with.

Sanjeev Dharap , Architect, Entrepreneur, Technical Advisor
Portrait of Brad Branson from Cornerstone Capital, Inc.


Chris brings expert advice and honesty to every project we work on. He gets things done in a timely manner and does an excellent job following up.

Brad Branson, Partner/Investment Adviser- Cornerstone Capital, Inc
Nathan Netravali


I found Chris when looking for life insurance brokers. I knew exactly what I wanted and told Chris and he was able to deliver without trying to upsell me on something else. It was very straightforward and exactly how I hoped it would be. I would definitely recommend him for anyone in a similar scenario.

Nathan Netravali, Associate Director of Clinical Applications at Think Surgical