Choosing a Permanent Life Insurance Policy

August 25, 2018

The hardest decision in life is picking which 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. It’s also possible that you can see the benefits of life insurance depending on the policy you choose. See? There’s a lot to think about. While there are some policies, such as term and endowment, that don’t cover your entire life, here are three types of permanent life insurance policies to take into account when deciding on the best fit for you.

Whole Life

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 parts are 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 is helpful if your goal is to buy the policy and save it for later.

Universal Life

This policy allows the policyholder to decide their premium payment schedule while maintaining the potential to earn cash value. This makes the Universal Life policy more flexible than a whole life policy. An added bonus is that this policy allows the policyholder to earn interest. Typical attributes of a Universal Life policy are the ability to earn a minimum interest rate and the potential to borrow or take withdrawals from the cash value.

Variable Universal Life

The variable in this policy are 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. The policyholder is in charge of how these net premiums are invested based on the investment options given by the insurance company. The only risk with these policies is how well your investments do over time.

These are only three possible permanent life insurance policies, but they’re the most popular options for a reason. This is a quick tidbit of knowledge about the types of life insurance policies available. For more information on each of these policies as well as other options, talk to the professionals. Contact Brownell Financial Services Group today or visit them online here.