Permanent life insurance as the term suggests is a policy which isnít limited by a term and instead extends for the lifetime of the policy holder. Permanent life insurance rates are usually higher than the premiums of term life insurance. For those wondering what is permanent life insurance, it should be understood that this policy guarantees death benefits to the beneficiaries of the policy holder irrespective of when it occurs. The guaranteed payout is what differentiates permanent life insurance policies from term life insurance where the benefits arenít available once the term expires. Permanent life insurance is ideal for those who want a constant coverage for the policy holder and death benefits for their dependents, payout of which isnít dependent on a term period.
When you have children and you would want to take no chances against their education or marriage, this policy proves very beneficial. This is ideal for a scenario, where you can manage finances as long as you are earning and would want insurance in case of your accidental death, so that the education of the children isnít affected in any way. You can request for permanent life insurance quotes to plan out what premium you have to budget for every month to get a specific coverage.
There are different types of permanent life insurance. The whole life insurance is a policy where the premium and the payout are both fixed. However, some would want to use permanent life insurance as an investment. This is where universal permanent life insurance and variable permanent life insurance can prove useful. In both cases, like whole life insurance, there is cash accumulation. However, there are two components of the accumulated cash. A certain part of this amount can be reinvested to get a higher return, unlike in the case of whole life insurance. However, there is a certain amount of risk involved as well since the returns are based on market conditions.
Whole life insurance, as implied by the name, is a policy that covers the policy holder for the entire lifetime.
There is no expiry date for the policy set in advance. The policy expires when the policy holder dies and the death
benefit is handed over to the beneficiaries.
Universal life insurance is akin to whole life insurance, but differs in the fact that this type of policy separates
the cash value and death benefit into two different components, thereby allowing the policy holder to make changes to the policy if necessary.
Variable life insurance is one of the key types of permanent life insurance that protect the beneficiary listed on the policy in case the policy holder dies.
This is also one of the expensive insurance policies since it helps build the cash value while also offering coverage.
The cash value life insurance is a type of insurance coverage that offers death benefits to the beneficiaries in case of death of the policy holder and also
helps build the cash value that can be withdrawn or borrowed by the policy holder during their lifetime.
Survivorship life insurance is a policy that is suitable if two individuals want to be covered under the same policy. Also referred to as Ďsecond to dieí insurance,
this policy is best recommended for couples.
An endowment life insurance policy is a coverage in which the insurer offers to pay out a pre-determined sum of money on the completion of the pre-determined term or
the death of the policy holder to the beneficiary or the policy holder.