Permanent life insurance, explained without the sales pitch.
Coverage that stays in place for life, builds cash value you can borrow against, and can pay out early if you become seriously ill. We will walk you through the trade-offs — including the ones that usually get skipped.
Licensed Texas insurance agent
Houston, Texas
No obligation
We will tell you when it is not a fit
It is asked to do two jobs at once
Most life insurance does one thing: it pays out when you die. Permanent policies with cash value are built to do that and to accumulate value you can reach while you are alive. Whether the second job is worth its cost is the entire conversation, and it depends on your situation rather than on the product.
The protection job
A death benefit that stays in place for life as long as the policy is funded and maintained. It does not expire on a birthday the way a level-premium term period does.
The cash value job
Value builds inside the policy over time and can be reached through loans or withdrawals. Access reduces the death benefit and can have tax consequences, so it is a lever with a cost rather than a free feature.
How it actually works
01
You pay premium. Part covers the cost of insuring you, part goes to policy charges, and part goes to cash value.
02
The charges come out whether the policy credits anything that year or not. This is the mechanic people are most often surprised by.
03
Cash value is credited using a formula tied to the movement of a market index. Your money is not in the index. You do not own it and you do not receive dividends from it.
04
That formula has a floor and a cap. They are one trade, not two features - raise the floor and the cap comes down.
05
Cash value can be accessed by loan or withdrawal. Surrender charges typically apply in the early policy years.
The trade-offs nobody leads with
If a page about this product does not talk about what it costs you, it is selling rather than explaining. Four things are worth knowing before anyone shows you a projection.
An illustration is not a promise.
Projected values rest on assumptions about crediting and charges. Change an assumption and the picture changes with it.
A smoother ride costs something.
Features that reduce swings reduce them in both directions, and when there is already a floor at zero the downside protection you are paying for may not be doing much.
Early exit is expensive.
Surrender charges in the first years mean the break-even point is further out than most people expect. Ask which year it is.
A loan left outstanding can create a tax bill.
If a policy lapses while a loan is outstanding, or becomes a modified endowment contract, the tax treatment changes and not in your favour.
1.
What is the guaranteed side of this policy, separately from the projected side?
3.
What are the total annual charges, stated in dollars, not as a percentage?
5.
What does accessing cash value do to my death benefit?
Six questions to ask before you buy anything
Ask these of us, and ask them of anyone else you talk to. The answers tell you more than any brochure.
2.
In what policy year does this break even if I stop funding it?
4.
What happens if I miss a year of premium?
6.
What would have to be true for this to be the wrong product for me?
See whether this is worth a conversation
Six questions, about two minutes. No health questions, and nothing here is an application.
Frequently Asked Questions
Is this the same thing as an IUL?
How much do I need to put in for this to make sense?
Will I need a medical exam?
What happens if I have to stop paying?
Would I be better off buying term and investing the difference?
What actually happens on the call?
Worth fifteen minutes?
If you are weighing this against something else, that is exactly the conversation to have. We will give you a straight read, including when the answer is no.
Legacy Stewards is an insurance agency based in Houston, Texas. Insurance is offered through Matthew Alan Powell, a licensed Texas General Lines Agent for Life, Accident, Health and HMO, Texas licence no. 3064891. Legacy Stewards is not a law firm, and nothing on this page creates an attorney-client relationship or constitutes legal, tax, or investment advice. This page is general education, not an offer of insurance or a recommendation for your situation. Life insurance is issued by an insurance company, and every guarantee rests on the claims-paying ability of the issuing insurer. Policy features, charges, and availability vary by product and by state, and not every feature described here is available in every state. Projected values are not guaranteed and rest on assumptions that may change. Accessing cash value through loans or withdrawals reduces the death benefit and may have tax consequences, including if a policy lapses with a loan outstanding or becomes a modified endowment contract. Please consult qualified legal, tax, or insurance professionals before purchasing any insurance product.