There is no question that term life insurance has its appealing aspects. It is easy to acquire and affordable, even in large amounts. Term insurance is an excellent choice for those high-responsibility periods of life, like when you have a young family and a mortgage. There is, however, still a place for permanent or whole life insurance.
On a cost-per-thousand basis, permanent life insurance is generally more expensive than term life insurance. It is still an option for many.
Parents or grandparents will often select a small permanent life insurance policy for young children. This is because permanent insurance can build cash value as the years pass. This can serve as a little nest egg for the child’s first car or the start of a college fund.
A permanent life insurance policy also ensures the policyholder will always have coverage as long as premium payments are kept up. A term policy will expire at some point.
A permanent life insurance policy may also be a good option for those who may have trouble setting money aside. As equity is built up in the policy, the policy can be surrendered for its cash value, or it can be borrowed against, usually at attractive rates. An established permanent life insurance policy with equity is a financial asset that adds to your net worth.
Permanent life insurance policies often contain additional benefits like a waiver of premium or disability benefit. It may pay benefits if the insured loses a limb or vision. It can pay multiples of the death benefit if death should occur by accident. In addition, the cash value built up can be used to extend coverage should the insured no longer be able to afford to pay premiums.
If you would like to know more about permanent life insurance and whether it may be the best option for you, please contact us. We work with a network of companies that offer permanent life insurance, and we can find you valuable options. Contact us today. Discover how a permanent life insurance policy can play a role in your financial future.