Permanent life insurance is different than a term life insurance policy. For starters, permanent life insurance lasts your entire life until you die. Term life insurance lasts for a set period of time, such as 10 or 20 years.
If you are trying to decide which type of life insurance policy you will purchase, you should consider the benefits associated with permanent life.
1 It’s Permanent
The best thing about permanent life is that it will last your entire life. This will give you the peace of mind that you need to know that your family’s financial future will remain intact if you pass away. If you choose term life and you allow the policy to lapse, your family won’t be protected if you die suddenly.
2 Flexible Premiums and Death Benefits
Permanent life is great because they offer flexible premiums. This will allow you to decide how fast or slow you want the cash value to grow. When you choose permanent, you are in charge of your family’s financial future.
3 You Can Access the Cash Value
If you find yourself in a financial bind, you can borrow from the policy’s cash value. This is great if you need to pay off debt, receive an unexpected bill, or to help with college tuition. You won’t need to explain what you need the money for because you can use it for any purpose.
4 Tax-Deferred
If you choose to borrow from your policy’s cash value, you can do so without paying taxes on the money. As long as you pay your premiums and keep your policy active, you won’t need to worry about paying any taxes.
5 Death Benefits Are Tax-Free
If you pass away, the person you listed as your beneficiary will receive the payout for your policy. If you choose a permanent policy, your death benefits will be paid to your beneficiary, and it will be tax-free. This will also save them from going through probate. If you want to leave a lasting legacy for your family, a permanent policy is the best option.
One of the best things that you can do for your family’s financial future is to take out a life insurance policy. Because we never know what tomorrow holds, you can never be too young to have life insurance. When it comes to choosing the best policy for your financial future, you should consider a permanent policy. It has many more benefits than other types of policies, which will protect your family’s financial future.
