While some people are going to tell you that going for permanent life insurance are complete waste of time and money, others believe just the opposite. Compared to term insurance, permanent policies are more expensive and for longer durations. So, are you worth your while? Truthfully, it depends upon your family structure, your aim of getting an insurance policy, your budget, your spending capabilities, and your individual requirement. The main feature of permanent life insurance is that it is a policy for keeps! When you want some permanent financial fixture in your life going for such policy, surely make sense.
It is possible to divide permanent life insurance policy into two different types.
- Whole Life
- Universal Life
Whole life policy is ideal for you when you have long-term goals to meet. There is a guaranteed corpus buildup in lieu of consistent premium payments. Universal life on the other hand signifies flexible premium payments, saving options, and death benefits.
What are the different the permanent policy features?
As the name suggests permanent policy signifies that it is for life. It contains investments, savings, and insurance all rolled into one. The premium is related to such plans are high because as a policyholder you get financial saving for times to come. Savings occur because whatever amounts you pay in premium, your insurance company is going to take a portion of it and invest. The interests accrued over time signify a substantial monetary return to you in the future. So another name for this kind of policies is the cash value plan.
Another important feature of permanent policies is that you can take loans against your cash buildup after definite periods. This arrangement can bring peace of mind because you know that whenever the going gets tough and you are in need of ready money you can always fall back on your permanent policy. There are two facets to permanent policies. One is the Face Value, which is your total insured amounts and the compensation amounts your family gets when you no more. The Cash Value on the other hand signifies your savings and this is the real charm and attraction of permanent policies that make them so irresistible.
So, if you are one of those people who is looking for a solid financial investment along with a substantial cover for the rainy days, permanent life insurance is ideal for you. Just go ahead and make the decision TODAY!
