Permanent Life Insurance

Permanent Life Insurance provides lifetime protection for the person insured, as long as the premiums are paid on time.

Most permanent policies build cash value within the policy, while also providing life insurance coverage.

The savings part of the policy causes the premiums to be higher than those paid for term life insurance.

The cash value that builds in the whole life insurance policy can be borrowed or distributed at some time in the future.

• Permanent insurance protection.
  
• More expensive than term insurance.
  
• Builds cash value inside the policy.
  
• Loans are available from the policy.
  
• Level premiums are available.

There are three types of permanent life insurance: whole life, variable life, and universal life.

Whole life insurance provides lifetime protection for the insured, and you pay a predetermined premium. The cash value within the policy usually has a guaranteed interest rate. The death benefit is a fixed amount determined when you purchase the policy. Whole life insurance is the most expensive type of life insurance. Free Quote and Insiders Guide to Life Insurance Click Here.

• Better premium rates are usually available for $100,000, $250,000, $500,000 and $1,000,000.

• Request and review an illustration for the policy you choose. This will help you understand all charges, cash value, rates and coverage provided by your life insurance policy.

• Select a level-premium policy. This will guarantee your rates do not increase during the term or life of your policy.

• Make sure you know how long you need the coverage. This will help you keep your premium payments down. If you only need life insurance for 10-20 years, then buy term insurance.

• Review the insurer's financial rating through www.ambest.com. This way you can tell if they are financially stable, and will be able to pay your claim in the event of your death.

• If you need to take a medical exam for your life insurance policy try not to eat sugar or caffeine for at least a day before the exam. Also, schedule the exam for early in the morning, and don't have anything but water for at least 8 hours before your exam.

• If the premiums you are quoted are too high because of medical reasons or you're denied life insurance coverage, check if your employer offers a group plan. Group plans usually require no medical exam and may be more affordable than rates you have been quotes. Also, they may allow you to purchase additional amounts of coverage above that provided by your employer.

Remember, when considering permanent life insurance there are several key considerations: The cost is more than term insurance and you will not build much cash value the first several years because the insurer is paying the agents commissions. So don't be sold on the investment aspect of whole life insurance.

Also, if what you need is the most coverage at the lowest rates for a specific number of years (10-30 years), then choose term insurance.