A Focus on Permanent Life Insurance

Buying life insurance requires a certain amount of research before you even begin comparing life insurance quotes. The reason is life insurance comes in two distinct types – term and permanent. And to add even more choices to the mix, both types of life insurance can be purchased in a number of configurations. The reason for all these options is life insurance is not one-size-fits-all and when comparing life insurance you want to make certain you are comparing apples-to-apples. One other element to keep in mind is life insurance can be a major part of your financial planning with many life insurance policies offering more than simple death benefits.

Taking a closer look at permanent life insurance

Permanent life insurance comes in a number of types including universal life, variable universal life and whole life. The key difference between permanent and term life insurance is permanent policies offer long-term financial protection. Permanent life insurance typically comes with a higher premium, but your policy includes a death benefit and very likely a cash savings. It’s possible to purchase permanent life insurance with a premium that remains unchanged as long as you maintain the policy.

The cash savings aspect of permanent life insurance makes this type of life insurance part of your financial planning. As you pay your premiums, part of that payment accumulates as a cash savings that you can use to borrow against with a loan on your permanent life insurance policy, or even be given to you if you end your permanent life insurance policy.

Some insurance providers even offer dividends on permanent life insurance policies when insurance costs for a year end up below what the insurance provider expected. Insurance providers that provide dividends don’t pay them out every year, but receiving a dividend on your permanent life insurance policy can be a nice bonus for protecting your family’s financial security.


Did You Know? Some permanent life insurance providers offer dividends on your policy.

Takeaways:

1. Premiums are higher with permanent life insurance than with term life insurance.
2. Permanent life insurance can be a part of your financial planning through cash savings
3. You can take loans against your policy’s cash savings

An independent online resource is the fastest and easiest way to have life insurance providers compete for your business. Click here if you are ready to start comparing life insurance quotes from multiple providers.