Is Permanent Life Insurance a Good Investment?
Definition of Permanent Life Insurance and Its Comparison
Life insurance for life now more and more demand. However, some of the customers when doing comparison life insurance still feel confused with the nature and some provisions on life insurance for life. The following reviews will describe various things about life insurance for life and comparison with term life insurance.
What is Permanent Life Insurance?
Life insurance whole life or life insurance is a life insurance that provides life protection, but usually insurance companies usually provide coverage up to 100 years maximum age.
Because the whole life insurance is life insurance, then this insurance will provide coverage when the insured dies. Life insurance whole life suitable for customers who have no dependents but do not want to bother the family if you die later.
The family will get the sum insured that can be used for the cost when it dies. Some customers who make life insurance comparison between insurance companies need to understand this understanding first.
Who Matches Life Insurance Products?
The characteristic of life insurance whole life is the basic type of permanent life insurance that provides life insurance protection for a person.
- Candidate policyholder who wants to have life protection as well as generate savings funds that can be used for emergency needs;
- Candidate policyholders requiring permanent income protection (hospital billing fees);
- Candidate policyholder who wants to get some capital investment growth.
Is Permanent Life Insurance a Good Investment? - Life insurance whole life (whole life insurance) is designed to provide insurance coverage for life insurance participants. Condition, participants (the insured) must continue to pay a premium to keep the policy remains active.
Type of Life Insurance Policy
1. Direct Life Policy (Straight Life Policy)
In a direct soul policy (also known as an ordinary soul policy), the premium remains paid until the insured dies or until the age of 90 or 100 years. The cash value in this policy is established as long as the policy lasts until it is equal to the sum insured when the insured reaches the age of 90 or 100 years. If the insured is still alive at that moment, the cash value will be paid to him and insurance protection stops. For the next, the policy is called due.
2. Life Insurance Policy Lifetime Limited Payment (Limited-Payment Whole Life Policy)
This type of policy is designed for people who want to have lifelong protection offered by a lifelong policy, but do not want to pay a premium for life.
In this policy, the insured can pay a premium within a certain period of time or until age, for example, 60 years, but with insurance protection continues for life. This type of life insurance policy only requires premium payment in a shorter time than other types of policies.
If you want to compare life insurance comparisons between each other, then understand about this policy first.
Life Insurance Comparison with Life Insurance
1. Term
Life insurance provides lifetime protection and accumulates cash value from policyholders. While term life insurance provides protection for a certain period of time can be 5, 10, 15, 20, or 30 years with affordable cost.
2. Specific Considerations
Term life insurance has the purpose of protecting your family from financial problems after your passing. While life insurance is aimed at accumulating cash value for borrowing which is useful to provide education fund, pension, or tomorrow's purpose.
3. Advantages
The advantage of lifetime life insurance is that premiums will not rise with age and are free of staffing or retirement plans. While term life insurance has the advantage of no health check to apply for a policy as well as free from employment or pension plans.
Both types of life insurance, both life insurance and lifetime insurance have their respective advantages. Comparison of life insurance and term life insurance will assist customers in choosing the type of life insurance. - Is Permanent Life Insurance a Good Investment?
