Looking to purchase permanent life insurance policy? Are you confused due to the several myths and misconceptions you have heard about this policy? We have compiled a list of frequently asked questions to help educate you better on permanent life insurance.
Why should I choose permanent insurance over term life insurance?
You should choose permanent life insurance over term insurance because it continues to give you coverage until you pass away. Therefore, you have no fear of losing premiums just because death did not come knocking before the expiration of the duration of your term life insurance coverage.
Are there different types of permanent life insurance?
Yes, there are about five different types of permanent life insurance. They include whole life insurance, variable life insurance, universal life insurance, variable universal life insurance, and survivorship life insurance.
Does permanent life insurance come with a cash value component?
Yes, permanent life insurance comes with a cash value component. This cash component is one of the reasons why it is more expensive than term life insurance.
Can I borrow against my permanent life insurance policy?
Definitely, you can. That is what your cash value component is there for. However, you need to have made in several premium payments for about 5 years before you can be allowed to borrow against your policy.
For how long does permanent life insurance give its holder coverage?
Permanent life insurance gives you coverage for as long as you live and continue to pay the necessary premiums. Some types of this insurance policy also grant you flexibility over how you pay your premiums.