The uncertainty of future worries us from time-to-time. However, investing in permanent life insurance guarantees a sense of security to your family, and also prepares you to meet the future predicaments face-to-face. Enlisted are the different types of permanent life insurance.
Whole Life Insurance
In this type of permanent life insurance, your family is entitled to get a certain benefit upon your death, regardless of when that occurs, up to a certain agreed-upon age. This is determined by mortality and expense projections, added to that, dividend scale assumptions. All three components are projected and integral to a whole life policy. The company often pays you the full face value of the policy if you live to the end of the specified mortality table.
Universal Life Insurance
A UL policy does not burden you with the elements that constitute a traditional cash-value permanent policy, such as interest earnings, mortality costs, and company expenses. It gives you the liberty to alter the face amount of your policy. Reductions can be done any time; increments have to be backed with evidence of continued insurability.
Furthermore, some UL companies subsequently increase their mortality and expense charges to levels higher than those illustrated when the policies were originally issued.
Guaranteed Universal Life policies
It is one of the fastest growing segments of the life insurance industry. These policies guarantee the death benefit as long as all scheduled premiums are paid in full when due. These policies may or may not accumulate a cash value—they are designed to provide coverage past age 95/100 and up to age 120.
Variable Life and Variable Universal Life
Whereas the premiums paid into most standard UL polices earn interest as per the investment decisions of the life insurance company, Variable Life policies earn interest on a portfolio of investments that you as the policy owner choose from a selection offered by the company. The other benefit is that a Variable Life or Variable UL policy may be surrendered for its cash value at any time, and the policy owner can exchange the policy for an annuity contract as well.
Reasons to Opt for Permanent Life Insurance
1. It takes care of your family’s finances for your entire lifetime, while providing an investment component – savings within the policy.
2. It also has an element of forced savings that is an extra feature. In this environment of low interest rates, some policies even pay a tax-deferred return of 4 percent or more.
3. If you are a retired couple worried about spending money because it will reduce the wealth to be left for your children, you can designate a small portion of available funds and buy a survivorship-permanent policy. This policy comes with no-lapse guarantee which will ensure that their children get the intended inheritance, while allowing them to enjoy their retirement.
4. Permanent life insurance accumulates a cash value, and the policy owner may be able to borrow against it tax-free.
Use the below given universal life sites to educate yourself about your life insurance needs, find quotes for Whole and Universal Life Insurance:
Universal Life Hong Kong & China: http://universallife.com.hk
Universal Life Indonesia: http://universallife.co.id