subject: The Many Uses of Permanent Life Insurance – Benefits During and After Your Lifetime [print this page] The Many Uses of Permanent Life Insurance Benefits During and After Your Lifetime
The term "permanent life insurance" suggests that once you have your policy, you keep it for life. Since the death benefits associated with the policy cannot be claimed by your beneficiaries until you pass away, the name is quite appropriate. However, there are many uses for permanent life insurancealso known as whole life insurancebecause it offers more than simply death benefits. Unlike term life insurance, permanent life insurance accumulates a cash value along with providing your family with death benefits. The cash value amount is tax deferred, which is another great benefit.
The cash value builds the longer the policy is open and can be used even while you are still alive. This means you can borrow the cash if you have unexpected expenses without any penalties. You might use the money to fund your child's higher education or help fund your retirement on top of taking care of emergency costs. While the premiums required of you in your young age are significantly more costly than if you were to choose a term life insurance policy, they become more economical as you age. This is because your premium is fixed from the time you open your account to the time the death benefits are utilized. Term life insurance, on the other hand, starts out affordably and increases in price with each passing year.
One of the most popular kinds of permanent life insurance is a universal life insurance policy. The three main factorsyour premium, the coverage, and where the cash value portion of your policy is investedare all up to you. Your desire for financial security will never alter, but the level of insurance protection you need at one time or another could change over time. The flexibility of universal life insurance gives you a great opportunity to change different components of your policy as time goes by without needing to close and reopen a new policy.
Because your permanent life insurance policy can be utilized both during your lifetime and after you have passed on, it is a great option for many customers. Some people who are ignorant to the benefits of life insurance see it as another requirement to pay money where usually nothing comes of it, like many other kinds of insurance. However, since death is inevitable, you know at one point or another, your policy will be utilized to its fullest extent.
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