In this primer, I will explain the differences between the two policies and outline some of the pros and cons of these 2 types
of permanent life insurance policy options.
Variable life insurance can provide an excellent form of
permanent life insurance coverage with a higher internal rate of return than a whole life or traditional universal life insurance policy.
Some choose to
buy permanent life insurance on their children that generates a cash value which they can use to help pay for future things like a first home or college tuition.
It will also stay with you throughout the remainder of your life — provided that the premiums are paid as, unlike term insurance,
permanent life insurance provides protection for life.
Generally, whole life, universal life and variable life insurance policies are
considered permanent life insurance policies because they remain in force until you stop paying the premiums or pass away.
That said, whole life insurance policies can be a good financial vehicle for people who have complex financial needs, or
need permanent life insurance for estate planning.
If you need insurance that lasts you longer or more extensive coverage than your best bet would be consider buying
permanent life insurance which can cover you all the way up to age 120.
High net worth individuals and business owners will often
use permanent life insurance plans to account for estate taxes as well as business succession planning.
Choosing term life insurance vs.
permanent life insurance does not involve choosing the one that's the best policy but more which one is the best for that particular individual.
Unlike permanent life insurance coverage such as whole life, term insurance does not provide any type of cash value build - up or investment feature within the policy.
In addition to term insurance, we also offer
permanent life insurance solutions including; whole life insurance, guaranteed issue life insurance, and guaranteed universal life insurance.
Reduced paid - up insurance is an option built into
many permanent life insurance policies that allows the insured to keep his policy if he stops making premium payments.
And if you
own permanent life insurance, make sure you calculate your premium with the death benefit (the death benefit needs to be part of the calculation).
Phrases with «one's permanent life insurance»