Permanent Life Insurance
Life insurance helps people plan for their family’s financial future, and many life insurance policies offer alternative investment opportunities. However, not everyone is looking for the same type of life insurance policy, which is why there are so many options that are made available. Individuals must do their research in order to determine what life insurance plan will be right for them. Term life insurance policies are used for those who only want a pre-determined expiration date on the policy. Those who are looking for permanent life insurance policies are typically planning on using the policy for their family or loved ones.
In fact, permanent life insurance policies are used for more than just investment opportunities and a means of securing someone’s financial future. Permanent life insurance policies have a number of benefits that the policy holder and family members can take advantage of. One of the most popular types of permanent life insurance is whole life insurance. Whole life insurance is a type of life insurance that doesn’t expire and lasts the entire life time of the policy holder. This type of life insurance requires a premium to be paid, usually every year. As long as the policy holder is current with their premium, they will have life insurance coverage.
Whole life insurance isn’t the only type of permanent life insurance that is offered to customers. Another type of permanent life insurance is universal life insurance. Universal life insurance acts much like whole life insurance, except the policy holder has more options. Whole life insurance requires a set premium to be paid, while universal life insurance gives the customer options with how to pay the premium. One huge advantage that universal life insurance gives the customer is the ability to make cash withdrawals without certain penalties that are associated with whole life insurance.
Another type of permanent life insurance that individuals can buy is variable life insurance. Variable life insurance acts much like whole life insurance and universal life insurance policies. One of the main differences that variable life insurance has when compared to whole life insurance and universal life insurance is the risk. With whole life and universal life insurance, the risks associated with the investment rests on the shoulders of the insurance company. With variable life insurance, the risk rests on the shoulders of the customer. However, the customer will have options for a higher return than whole life insurance, and universal life insurance can offer.
Many investors consider variable life insurance a better investment when using life insurance. In fact, most investors prefer variable life insurance over other permanent life insurance policies because of the chance of greater returns. Variable life insurance has tax advantages that many investors look for when investing. Many people look at permanent life insurance as an investment. Permanent life insurance policies pay a death benefit and other cash value benefits that are looked at as an investment. Life insurance policies that are permanent offer more benefits to the consumer than traditional term life insurance policies.
Since permanent life insurance policies offer more benefits to consumers, they are typically more expensive than term life insurance policies. Term life insurance has many restrictions that are eliminated with permanent life insurance. People who purchase term life insurance may outlive their policy, requiring them to purchase life insurance again. Purchasing life insurance at an older age may impose higher premiums and other costs that are associated with a life insurance policy. To avoid these changes, people will purchase permanent life insurance, which doesn’t require the policy holder to purchase life insurance again in the future. As long as the consumer is up to date with their premium, the permanent life insurance policy remains in force.