One of the most complex decisions in life is picking which NH life insurance policy is best for you. Well, it may not be the actual hardest decision, but it’s in the top ten. It’s a decision that takes a lot of consideration because life insurance is what will provide for your loved ones when you’re no longer around to care for them.
However, it’s also possible that you can see the benefits of life insurance depending on the policy you choose. While some policies, such as term and endowment, don’t cover your entire life, there are others that do. Here, the experts at Brownell Financial provide you with three types of permanent life insurance policies to consider.
Let’s start with the bad and get to the good. The bad part of a whole life insurance policy is that it tends to have the highest premiums. The good part is pretty much everything else. This is the kind of policy most people think of when they hear “permanent.” Whole life policies have the ability to grow in cash value over time when the premiums are paid promptly. This cash accrual benefit becomes helpful when the goal is life coverage and possible retirement investment. Of course, this should in no way be considered the only (or best) method of retirement funding.
A universal life policy allows the policyholder to decide their premium payment schedule while maintaining the potential to earn cash value. This makes a universal life policy more flexible than a whole life policy. An added bonus is that universal life allows the policyholder to earn interest. Typical attributes include the ability to earn a minimum interest rate and the potential to borrow or take withdrawals from the available cash value.
Variable Universal Life
The variable in this policy refers to the investments. Variable universal life has the same flexibility that a universal life policy affords, with a little more flexibility. Net premiums are the premium payments that don’t affect cost or charges. Instead, the policyholder is in control of how these net premiums will be invested. This responsibility is based on the investment options given by the insurance company. Thus, the only risk with this policy is how well your investments do over time.
While these aren’t the only three possible permanent NH life insurance policies, they are the most popular options. For more information on each of these policies as well as other options, talk to the professionals. Contact Brownell Financial Services Group today by calling (603) 437-1992.