Permanent Life Insurance
Permanent Life Insurance: What is it?
You take steps to safeguard your family from risk throughout life. Insurance helps mitigate a variety of risks from auto, health, home owners, ETC. Permanent Life Insurance is another tool, insurance packages, to provide your family a lifetime of security and peace of mind. You may have heard of it by its more common name: Whole Life Insurance.
There are a lot of life insurance options in the market to choose from and all of them are designed to provide a lifetime of protection.
Everyone needs insurance protect and finding the right plan for your needs may seem daunting. It is important to find the best plan that fits your personal needs. The first step to finding the perfect match is educating yourself on available options.
A comforting aspect of Permanent Life Insurance is the consistency of premium payment costs and is known as level premium coverage. The premiums maintain a relatively level cost as long as payments are made as agreed. Premium installments can be made either be monthly or yearly.
Whole Life Insurance, also known as Straight Life or Ordinary Life, is a permanent guarantee to stay in effect as long as the insurance is alive and as long as premiums are maintained.
The concept of a permanent policy is simple: Maintain premium payments and upon your death your beneficiaries receive a payout. This allows you to shield your family from loss of income and other financial obligations you may leave behind. It also works as a savings investment, building "cash-value" over time that can be withdrawn or loaned against prior to the death of the insured. Permanent Life Insurance premiums can be higher than other types of policies due to the integrated investment aspect. Best Affordable Life Insurance for people in the Charlotte area and cheap.
The most common other option is Term Life Insurance.
These policies are less expensive upfront and pricing is fixed for certain lengths of time known as a term. These term lengths vary and may be for 10 or 20 years. Term Life Insurance policies do not build "cash-value" nor do they guarantee the insured future coverage after the expiration of their current term. This is usually the cheapest form of life insurance.
Whole Life, Straight Life, or Ordinary Life
These are the most common form of Permanent Life Insurance policy. It is a combination of death benefits and an investment savings account. If chosen, you consent to a specific premium for the duration of coverage for a particular death benefit. Savings increases based on dividends the insurance company pays back.
Universal Life or Adjustable Life
More flexible than Whole Life or Ordinary Life; you have the ability to increase the death benefit after a medical examination. Market rate of interest affects savings. Once you build sufficient value in your account, you may have an option to modify premium payments based on your specific policy.
Having the ability to modify payments has is advantageous in a life changing event that requires you to take a financial loss. You may be able to use accumulated value in the policy to cover this period. Always contact your agent before making decisions about any payment forbearance options.
Variable Life Insurance
This policy is a combination of death benefit protection and more traditional money market investments such as stocks, bonds, and mutual funds. These values may increase or decrease based on market risk/reward. Fortunately, your policy will not fall below the death benefit amount.
Variable-Universal Life Insurance
A combination policy of both Variable Life and Universal Life. This policy maintains flexibility of being able to adjust your premium, potential market risk/rewards, and being able to adjust your death benefit.
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