Under current law, cash values that accumulate in the policy are tax deferred. Even when cash values are borrowed, there may be no tax consequences in many instances. Finally, proceeds received by beneficiaries are generally not taxable as income. Consult with your tax advisor for more details. Premium rates may never be lower.
Premiums generally increase with age.
However, with permanent life insurance it is possible to lock in the premium at the insured's current age for life. This policy can help guarantee future insurability. Once the policy has been issued, coverage cannot be canceled as long as all required premiums are paid. Also, if a guaranteed purchase option is included with the policy, the insured has a right to increase coverage at designated dates, regardless of insurability.