Major Advantages of Permanent Life Insurance Policies

 

Protection is key to a more a secure and happy future. One measure to guarantee your family’s wellbeing is by purchasing a life insurance policy. This product will definitely give your loved ones financial stability after your untimely demise. It is also a great means to earn more cash or have a source of funding if and when you need them for financial emergencies.

One excellent life insurance types is that of permanent life insurance products. Highlighting its many benefits will hopefully make you aware of its importance in your life and that of your family’s too.

  • One-time purchase. No need to renew the loan

Although whole life and universal life are known to have more expensive premium payments attached to them, the renewal fees and charges that a term life insurance features are expensive too. Although term life insurance policies have lower premiums, the costs of maintaining them over a specific period of time are relatively expensive and negate the savings that this type of insurance product claims to offer.

Permanent life insurance policies do not require its policy holders to renew once nearing the end of the term, thus making this option a money and time saver.

  • Receive cash value and death benefits on maturity date

This is one of the great things in both whole life and universal life insurance products. Insurance providers provide both the cash value that has been generated by investing in a policy and the death benefit to a policy owner who lives beyond the age of 100.

Policy holders stop making premium payments at this age. Both these are paid out to the customer in a lump sum payment.

  • Premium payments do not change

Regardless of administrative costs and mortality tables, permanent life insurance policy holders are only required to pay a fixed amount of premium until it matures. This is a better alternative among providers who have fixed income and can only allot a specific amount of money to cover for insurance premiums on an annual basis.

  • Reliable source of funding

Policy holders of permanent life insurance can always count on the cash value that it features during emergency situations. Instead of taking out a loan from the bank or from payday lenders, you can make use of available funding that is meant for your utilization especially in times of dire financial need.

Major Drawbacks of Whole Life and Universal Life Insurance Policies

  • Costly insurance broker fees

Since you need to be in constant communication with an agent, you are obliged to pay for the services rendered. Instead of saving money and investing it into more profitable ventures, policy holders are stuck to paying brokers on a regular basis for tasks and functions that you, as a policy holder, can work directly with your insurance company.

  • Tedious withdrawal of cash accumulation or cash value

Since the number one benefit of opting for a life insurance policy is the cash accumulation or cash value, policy holders, at one point in time, may opt to take advantage of this feature. The process of applying for a withdrawal is long and tedious. Paper works are to be filled out and the waiting period before the cash value can be taken out relatively eats up a lot of time. Policy holders who need funding to cover for acute expenses may only get frustrated with the slow processing of cash value withdrawal.