Do you Need Permanent Life Insurance?
Well, if you are looking for a pan that protects your loved ones for as long as you are alive, the answer is plain and simple—you need permanent life insurance.
When you are a family person, life comes with responsibilities—buying a car, a house, paying for your children’s education and so forth. When you have an insurance all along, these responsibilities become lighter and so much doable. And when you are gone, the insurance helps your family bear the responsibilities that come on to them all of a sudden.
Why Life Insurance at All?
Simply because it provides financial security to your family. when you are gone, the money from the death claim helps them clear so many expenses like funeral expenses, any mortgages that you have, their healthcare, any legal fees that go in claim and debt settlement and asset transfers. in short, it is quite a financial assurance to your family when you are no more.
What Choice do you Have in Life Insurance?
There are three basic kinds you can choose from:
- Term Life Insurance
- Permanent/Whole Life Insurance
- Universal Life Insurance
Here we will discuss everything about Permanent Life Insurance.
So, What Exactly does Permanent Life Insurance Offer Me?
Permanent life insurance offers lifelong protection. It stays in effect as long as you live, regardless of your age or medical condition. All you need to ensure is the payment of monthly or annual premiums on time.
Is that just what you need? Read ahead and find out.
If you are future-oriented, and would like to ensure the coverage for as long as you continue to live, this kind of insurance is it.
Also, if you would like your premium to stay stationary for all times to comes, this is also it.
You can expect the following things from Permanent Life Insurance
- It’s guaranteed life coverage for your entire life as long as you keep making the premium payments regularly.
- the premium will stay the same throughout your life even as you grow older or acquire medical conditions.
Can you Grow Your Wealth with Permanent Life Insurance?
A feature called cash value is one among the most important features ofPermanent Life Insurance. It works exactly like equity in your home. It only increases over time and you can also borrow against it, even use it as collateral against loan. While you can withdraw the cash value against your life insurance, it does result in decreased death benefit.
Permanent life insurance does cost more than term life insurance, but it also pays off better in terms of fixed premium. Term life insurance is easy to afford in the beginning because of your young age and better health. As you age and health changes for the worse, term insurance becomes only an expensive affair. and of course, there is no cash value facility.
The permanent kind may seem costly at the beginning but as you grow old and acquire health conditions, your premiums still remain the same as before.
Can you Also Benefit from Employer-sponsored Life Insurance?
It’s a good benefits if your employer offers life insurance, but there are certain things you must keep in mind.
- It lasts only as long as your job. When a new employer hires you, you will have to apply again in case your new employer does offer life cover. and you will be, of course, without cover between the jobs, if you don’t have an individual cover. (There may be a possibility that you are able to convert it to individual life cover before you leave an employer.)
- the cover ends when you retire.
- As you grow older the cover might become expensive.
- Though it is cheaper to buy insurance as a member of group cover that as an individual, you’ve got to think if that cover will be enough to provide for you and your family’s bigger expenses like house mortgage and college fee.
- This is why group cover is great as an additional over and above permanent life insurance cover but not the only life cover.
The Role of an Advisor in Making Insurance Decisions
One before you buy any kind of life insurance, term or permanent or universal, you will need advice on what suits you the best. And when you have made up your mind to go for permanent life insurance, it is important to pick and choose from among the various permanent life insurance policies available.
There will be some policies that require you to pay only for a certain period of time but continue to protect you for life. There are ones that require to pay till you live. To be able to choose the best option for you, you will need to examine these options in terms of benefits and features with regard to your financial situation.
your could have simple needs and require just one policy to cater to the entire family’s needs. Or it could be more complex and require more than one policy. Whatever it is, an advisor will help you sort it out. An advisor can help you picture the policy in the bigger picture of your life. They can also help you when you fall in a high tax bracket and own considerable property that needs to be passed on to your heirs.