A Comparison between Term Life and Permanent Life Insurance Policies

Selecting an insurance policy is always an important decision that should be taken only after considerable thought and planning, as the implications are long-term and generally irreversible. Your insurance cover is the commander of your future fortress, being the most vital cushion of comfort for your family after you are gone. A prudent way to go about selecting an insurance policy is to compare the pros and cons available of the different types and then choose the one that best suits your needs. To help, let us take a look at the intricacies of the two most popular types of insurance options – term and permanent life.

Term Life Insurance

Term Life Insurance

This type of insurance provides security for a specific duration, and if the policyholder dies within the stipulated period, the beneficiaries receive the face value of the policy tax-free. However, in case the policy holder outlives this timeframe, then another policy must be bought in order to continue the insurance. Some key aspects of term life insurance:

• Provides no other benefit besides protection, as the holder pays only for the insurance and no cash value is generation. This is the reason why premiums of term life insurance policies are usually lower than the premiums of permanent life insurance policies.
• The only return in this case is the Return-On-Premiums (ROP), which is the sum total of all the premiums paid by policy holders at end of the term.
• It is a suitable option for those with short-term requirements. E.g. School and college expenses for children, holiday planning etc.

Permanent Life Insurance

Permanent Life Insurance

Although permanent life insurance policies cost more, they have certain characteristics that give them an edge over term life insurance; for instance, death benefits and an accrued cash value. Another important differentiator is the fact that premiums for permanent life remain almost constant over the years, while for term they keep on gradually increasing as the end of the stipulated period approaches near. Other key aspects to know:

• It is essential to keep the permanent policy alive for a long period of time as longer the policy is in force, higher is the amount invested in it, and even greater is the amount of dividend and interest earned by that amount.
• The amount that gets accumulated in the investment account as cash value is also tax-deferred, which enables the holder to withdraw or take loans against it to meet contingencies without having to worry about the dreaded government scissors on their pockets.
• Permanent life insurance policies suit those individuals who do not have any significant short-term debt that can hamper their ability to pay premiums and have long-term debts to acknowledge, for example, estate duties and taxes, and they do not want their beneficiaries to be worried about it in their absence.

Hope this read clears some of your doubts about term and permanent life insurance policies, and helps you to select a suitable policy as per your requirements.

Get fast life insurance quote online from below given websites to protect the people you love. Customize your policy with options that best meet your needs:

Universal Life Hong Kong & China: http://universallife.com.hk/

Universal Life Indonesia: http://universallife.co.id/

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Secure Your Future: Learn How Permanent Life Insurance Works

Permanent life insurance assures a sum due to be paid at the maturity of the policy (assuming the policy is continued) and the policy generates a cash value. It provides protection for your entire lifetime in most cases.

Regardless of when you die, as long as premium payment is up to date, your beneficiaries will receive the proceeds, generally income tax free. Permanent life insurance works to meet long-term requirements; has level premiums and a cash value that grows tax deferred.

Permanent Life Insurance

Short-term Benefits
• Dividends can take care of premium payments.
• Total death benefit can be grown along with your coverage without increasing your premium.
• Premiums, although higher on a permanent life insurance policy, contribute to the growth of the policy’s cash value.
• Permanent life insurance is flexible and provides you dynamism to change your plan according to your present needs.

Long-term Benefits
• Protection of funds which are a part of your portfolio.
• Cash value growth over time.
• Tax benefits
• Dividends providing competitive returns.
• An asset that is immune to recession.

Access to Cash Value
The amount generated over the years in the cash value account can help you meet your urgent needs as well as achieve financial goals. It helps to:

• Be a crutch during your retirement
• Fund your child’s education
• Provide a viable option where heavy down payment of funds is involved
• Carry out a new business venture
• Meet family emergencies
• Save tax

Over the past few years, the need for permanent life insurance has been felt by people belonging from all strata of society. Today, people are using permanent life insurance for the powerful use of its cash values and the freedom it provides in retirement, along with its ability to leave a legacy to family or charity. In these circumstances, permanent life insurance makes it more than just a death benefit, it becomes an asset.

Get a life insurance quote through universal life to protect the people you love. Customize your policy with options that best meet your needs:

Universal Life Hong Kong: Universallife.com.hk

Universal Life Indonesia: Universallife.co.id

Universal Life Insurance and its Benefits

Universal Life

Life insurance is an essential feature that gives us financial security in life. As life is uncertain, we need to be financially prepared to face any challenge it may hold. Moreover, we simply cannot ignore the financial security of our family. Life insurance provides comprehensive security for your future as well as of your family, as it helps them to sustain the uncertain events of life such as death, accidents, etc.

Though there are various types of life insurance options that you can choose from; however, most people opt for universal life insurance.

What is Universal Life Insurance?

Universal Insurance is a type of permanent life insurance, and an ideal option for people looking for a flexible life insurance policy. This flexibility is in terms of premium payments and death benefits. Life and its needs are ever changing; Universal life insurance allows you to alter your premium payments to match up with changing needs.

Benefits of Universal life insurance

• Universal life insurance policies give you the freedom to decrease or increase your death benefit.
• By buying universal life insurance, you can pay your policy premiums at any time and in any amount (subject to certain limits) after the first premium payment has been made.
• There might be a time when you are unable to pay a certain premium amount; you can pay the premium using cash value amount of your policy.
• Universal life insurance lets you to do better and efficient financial planning. This is because you get complete control over your funds.

Universal life insurance is undoubtedly a perfect option that provides various benefits to the policy holder. To protect yourself and your dear ones against the uncertainties of life, all you need to do is rope in a reliable company that provides the option.

Recommended life insurance companies:

Universal Life Hong Kong: Universallife.com.hk

Universal Life Indonesia: Universallife.co.id