The necessity of life insurance is undisputable, since it protects the individuals through the life and beyond. Life insurance policies come in various different coverage, some offering complete coverage, while others offer conditional coverage. Buying a life insurance with maximum benefits is always recommended, since it is of utmost importance to protect our loved ones.
Permanent life insurance guarantees a complete coverage with a lifelong protection plan. Not only does the insurance policy provide protection against injuries and accidents, but they also provide cash benefits to the family in case of untimely death. Permanent life insurance policies come in a variety of different coverage options, all of them offering life time protection and cash benefits in some form. To receive the cast benefits, the only condition is to pay the premium amount on time, without missing a single installment. Since permanent insurance provide lifelong protection and beyond, the premium rates are slightly higher than that of term life insurance. But buying life insurance policies must never be based on the premium rates, since the low premium insurance policies do not provide the best coverage.
Permanent life insurance comes in different policies. Some of them are listed below:
Universal Life Insurance:
Universal Life insurance provides life time coverage plan and a sum of amount that gathers interests with time. In order to use the benefits of this cash, the premiums must be paid regularly. Loans can be borrowed against this cash, but in order to get the benefit of insurance later on, the loan borrowed must be repair on time. The cash benefits can also be used to adjust premium payments if there is a bad financial situation, but the cash benefits must not be completely utilized as it may null the policy. Universal insurance provides the flexibilities that a basic permanent life insurance does not provide.
Variable Life Insurance:
This permanent life insurance gives the option of investing with the cash component of the insurance. It can be used to invest in bonds, stocks and mutual funds. Like in the case of stocks, it is exposed to the fluctuations of the market. The benefit is that a higher amount of money can be obtained as returns from investments along with the principal amount. But if the market conditions are not good, the loss is inevitable.
Variable universal:
Like the name suggests, it is a combination of variable life insurance and universal life insurance. It has the options to invest in bonds and stocks, and it also has the benefits of using the cash benefits as loans and premium adjustments. It has combined benefits of fine tuning the insurance policies according to the situation, and getting a higher cash benefit by the returns made from investments.
Whatever the insurance policy chosen, it should provide coverage that will satisfy the needs of the family later on, and provide lifelong protection against unforeseen circumstances. It is not worth taking chances with sub standard insurance policies with just for the ease of paying lower monthly premium rates.
