How permanent life insurance can benefit you.
Life insurance is one of the most confusing topics for consumers. On top of that, it’s morbid to talk about one’s own death, meaning that even fewer people are likely to stop and think about coverage. However, life insurance provides financial protection for your family when you are no longer around to help. When you are thinking of purchasing life insurance, you may consider term life insurance, which is coverage that covers you for a certain amount of time before expiring. What you could benefit from, instead, is permanent, or whole life, insurance.
Permanent life insurance covers you for your entire life. This means that you have permanent coverage, as long as you keep paying the premiums. Whole life insurance policies give you the benefit of life-long coverage, investment value, and set payments. However, you can expect to pay higher premiums in exchange. Even so, these premiums tend not to fluctuate, meaning that you have stable premiums to pay.
Term life insurance only pays your beneficiaries the death benefit if you die within your term policy. With permanent life insurance, the policy will pay out whenever you pass away. This means that you don’t have to think about renewing coverage if you survive your term policy, and possibly face higher premiums when doing so.
A whole life insurance comes with a unique benefit – Your insurance premiums are placed into stocks or bonds and earn interest over the life of the policy. The balance of your whole life insurance account can be borrowed against and counts as an asset in your overall financial picture. If your family face a financial tough spot, you know you can borrow against your policy if necessary.