Types of Permanent Life Insurance
When you are shopping for a new life insurance policy, you have the option to purchase permanent life insurance or term life insurance coverage. While term life insurance will expire at the end of the specified term length and coverage will cease, the benefits of a permanent policy can extend for a lifetime.
If you have made the decision that permanent or lifetime coverage is right for you, you should take time to learn more about the different policy options available.
Whole Life Insurance Coverage
Whole life insurance is one type of permanent life coverage, and this is a unique policy because it will continue indefinitely for a lifetime provided the insured makes the premium payments.
The premium of these policies is generally higher than the premium of a term life insurance policy, so they may not be ideal for those who are buying coverage on a tight budget. However, in exchange for the higher premium, the policy can accumulate cash value, and the death benefits may never diminish over time.
The insured can access the accumulated cash value by surrendering the policy or by taking out a loan. Many insurance companies offer competitive interests rates on loans against the accumulated cash value on a whole life insurance policy.
Universal Life Insurance Coverage
Another type of permanent life insurance is universal life insurance, and this type of policy is similar to whole life insurance in many ways. It may also extend for a lifetime, but it offers more flexibility to the policy holder.
This is because the insurance company separates the policy expenses, the death benefits and the accumulated cash value to provide the policy owner with greater flexibility to make the policy more useful for his or her needs. These may have adjustable rates and increased ability to adjust how quickly cash value is accumulated.
Other Types of Policies
In addition to these two options, there are variations of these policies that you can consider.
For example, a to age 100 level guaranteed policy is a type of universal life insurance that extends until the insured reaches the age of 100, and it may cease at that time. Some of these policies have an extension option available after the insured reaches age 100.
Another option is the survivorship policy. This is a combination policy for a husband and wife, and it pays benefits only to the surviving spouse when one passes away. It is a cost-effective option for couples.
If you have questions about the permanent life insurance options available to you, such as whole life insurance or universal life insurance, you can speak with an agent today. 1-888-773-1181