Permanent Life Insurance


 Permanent Life Insurance

Permanent life insurance is a type of life insurance that guarantees the death benefit will be paid until the policy expires, even if you die before the policy matures. Currently, permanent life insurance can only be purchased with cash value policies.

If you are planning to buy a permanent life insurance plan for yourself or your family member, here are some questions and points to consider prior to purchasing:

- How long do I want my coverage to last?     The insured's age will play an important role in determining how long they want their coverage to last. In general, people who intend on taking care of heirs can also have shorter periods of time instead in which they'll need access to funds. If you are nearing retirement, you also want to have coverage that will last as long as possible.

- How much permanent life insurance will I need?     The amount of coverage that you need depends on many factors, such as: the debts of surviving family members; the expected cost of funeral arrangements and estate taxes; and willingness to take out a loan if needed for any expenses. Many people do not realize that even small obligations can quickly add up. For example, if your spouse is younger than you and has already planned for her financial future, she might not need half your benefits when you pass away and instead split them with your children.

- When will I need to pay premiums?     Premiums are usually payable throughout the lifetime of the insured. However, for term policies, you only need to pay your premiums until the term expires. Furthermore, you may be eligible for permanent life insurance with no cash value as low as $25,000.

- How will this high-deductible deal affect my financial planning?    If you opt for a high deductible permanent life insurance policy that covers non-medical expenses such as funeral costs and estate taxes, it will require a higher amount of coverage than one that covers medical expenses at lower expense levels. Having life insurance with lower premiums will definitely have an advantageous impact on your financial planning.

- What will the policy pay out?     A permanent life insurance policy can offer several payout options, such as the following:
- Payout for a guaranteed period of time, usually until you reach a certain age
- Payout for your entire life expectancy
- A lump sum settlement with cash value – This usually counts as taxable income and should be taken into account by the insured before making their decision.

  The exact details vary greatly from one plan to another. Be sure to look through all of your policy's features to make sure it meets your needs.

- How long will it take for the money to reach me?    The waiting period depends on several factors, such as; your location, the type of policy you have, and the number of loan payments. The waiting period can also be reduced based on your life expectancy. For example, if your coverage is guaranteed for a term of 10 years and you have a 20 percent chance of living to age 75, then you would only have to wait around five years.

- What is the deductible?    Deductible amounts vary widely from one policy to another depending on how much coverage they provide and many other factors. Generally, term life insurance with a low premium usually has higher deductibles.

- What are the medical expenses?    Medical expenses include costs such as hospitalization, doctor visits, surgeries and any other expenses related to your health that are not covered by another policy or family members.

- How will it affect my financial planning?   Because of the high amount of coverage you'll need to pay out, permanent life insurance can be a very useful tool to help cover these losses. If you plan on having children in the future, consider getting permanent life insurance and design it as an inheritance for them if and when you pass away. For more information on how permanent life insurance can help, check out or call 800.564.0186 to speak with one of our advisors directly. [ARTICLE END] 


Post a Comment

Previous Post Next Post