Here’s why permanent life insurance may be right for you and your loved ones.
When it comes time to select a life insurance policy, many people go for term life because it is the cheaper, more straightforward coverage option. However, there are some distinct benefits to securing a permanent life insurance policy. Here’s why permanent life insurance may be right for you and your loved ones.
- What is Permanent Life Insurance?
As the name suggests, permanent life insurance is any life insurance policy that offers coverage throughout your life. In contrast, term life policies will only offer coverage for a set amount of time, typically 10-30 years. So, when you select permanent life insurance, you do not need to worry about your coverage expiring.
- Advantages of Permanent Life Insurance
All life insurance policies pay out a death benefit when the policyholder passes, and permanent life insurance is no different. A death benefit is the amount of money that will be paid out to your beneficiaries, usually your immediate family members. This money can be used to cover your outstanding debts, your ongoing financial obligations, your missing income, your final expenses, and your family’s day to day expenses.
In addition to death benefits, permanent life insurance policies also offer a cash value component. Policyholders are allowed to borrow against their cash value component should they need quick money to cover an emergency situation. Borrowing against your life insurance policy is convenient as you do not need to wait to be approved for the loan. Additionally, the interest rates on these types of loans are far lower than the rates on traditional bank loans, making them cheaper and easier to pay back. Please keep in mind that your cash value component grows as you pay your life insurance premiums. So, you may have to wait a set period of time before you will be able to access the cash value component of your policy.
Here’s why permanent life insurance may be right for you and your loved ones. Do you have more questions about your life insurance coverage? If so, then contact the experts at 01 Insurance in Astoria, New York. Our dedicated team is eager to assist you with all your coverage needs today.