There are a few different types of life insurance. Term life insurance is the simplest, paying a benefit out should you pass away during a specific time period. After that time, it expires. Another type, called universal life insurance, is similar to term life insurance, but it allows you to save at the same time. But there is another type of life insurance as well: permanent life insurance.
Permanent life insurance, also known as traditional whole life insurance, involves a plan that keeps the premium and the benefit at a consistent level throughout the life of the policy.
This type of policy is a little more complicated, but it basically charges you a large premium in the beginning, but puts some of that money away, saving it to use toward your life insurance premium as the policyholder gets older. This is a great way to keep your life insurance policy intact without having to pay a lot of money later in life.
Why would I choose permanent life insurance?
Even though there are savings components that recycle your money and save it for you to use toward your premium later on, a permanent life insurance policy isn’t meant to be an investment and doesn’t serve as one. There is no cash value that builds up over the course of these types of policies, yet it is still a wise choice. There is no set time limit, like a term life insurance policy, so you will never have to worry about setting up a new policy. It also allows you to borrow money you’ve put into it to put toward premiums or even outside sources—without the credit check.
The best way to find out more information about permanent life insurance is to schedule a call an insurance agent Peter Green, who can help explain the pros and cons of this type of policy.