Reasons to Purchase Permanent Life Insurance

A permanent life policy covers your death benefit, regardless of what your next life expectancy is. The death benefit also accumulates tax-deferred until you pass away or become a hundred years old. The many benefits usually mean higher premium rates for permanent life policies, though. However, the insurance premium in a fixed policy remains at a cheaper rate than its policy ear.

There are various types of permanent insurance policies, including whole (ordinary) life, universal life, variable life, and variable universal life. In a permanent policy, the cash surrender value isn't equal to its face value. The face value is the amount of money that will get paid at the time of death. Cash revenue is what you've accumulated when you surrender the policy. There are several options to use the cash, such as taking out a loan against it or surrendering the policy.

Permanent features of a policy provide it with a unique quality: 

• With a guaranteed policy, premiums will not increase as you age or if your health status changes.
• The policy will accrue savings.

Depending on the policy, you may be able to withdraw cash depending on the policy. You may also have these options:

• Use the cash value in the policy to cover premiums. If unexpected expenses arise in your pocket, you can stop or reduce premium payments as needed. Cash value in the insurance policy can be used toward premium payments so long as there is enough money in the account.
• Borrow from the insurance company using the cash value in your life insurance policy as collateral. Like all loans, you will subsequently have to repay the insurance company with interest. Otherwise, the policy will lapse, or your beneficiaries will receive a reduced death benefit. However, unlike loans from most financial institutions, it is not probable the policy will be terminated, The loan is not contingent on credit checks or conditions.