Temporary vs. Permanent Life Insurance Policy

It is time to stop thinking about life’s uncertainties and start embracing long-term predictability.  People invest money in mutual funds, property, land etc. but investing in an insurance policy can also be a great way to protect your family members, even after your departure. Whether you are planning to purchase a policy or just looking for quotes, it is important to understand the types of policies available so that you can select the one that meets your requirements.  There are two general types of insurance policies – temporary and permanent.

Temporary Insurance
Universal Life

It is a type of insurance policy that provides coverage for a limited period, or specified ‘term’ of years. If the insured dies during the specified time, then the death benefit will be paid. Factors to consider while opting for term policy –

–    Term of the policy
–    Premium amount
–    Death benefit

Permanent Insurance
Universal Life Insurance plans

Permanent life insurance provides insurance for your entire life (in most cases). As long as your premiums are paid, your beneficiaries will receive the proceeds, no matter when you die. The main types of permanent insurance are variable, whole and universal. Factors to consider while opting for a permanent policy –

–    Tax advantages
–    Age
–    Cash Value

Term or Permanent – Which Is Better
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Before buying a policy, it is important to categorize your insurance needs. Term insurance is appropriate for an average individual looking to insure themselves against unforeseen events. On the other hand, permanent life insurance can be beneficial for someone who wants both living and after death benefits.

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Permanent Life Insurance – Enjoying Leverage over Term Life Insurance

Broadly speaking, there are three types of permanent insurance, namely universal, traditional whole and variable. Universal insurance allows you to increase or decrease your premiums, ensuring cash balance. Whole life insurance has a fixed premium and guaranteed minimum growth. Lastly, variable insurance allows you to decide how to invest the cash.

universal life

The main aim of taking a life insurance policy is to protect your family’s financial future when you are no longer there to support them. Permanent life insurance Singapore does that for your entire life, while also offering an investment feature, i.e. savings build within the policy. You can also tap or borrow against this “cash value”. In comparison, normal term insurance policies provide coverage for a stipulated number of years for a lower premium. At the end of the term, you usually get no cash back. The contrasting features of Permanent and Term life insurance clearly gives permanent life insurance an edge over usual term life insurance.

Benefits of Permanent Life Insurance
About UsNo Policy Lapse Criteria

If you pay a certain minimum premium amount for a certain period, your policy will remain in force for the period of guarantee, even in instances where the cash values drops to zero. As long as you pay the minimum amount, your policy is unlikely to lapse. If your policy is building cash value, you also have the privilege to reduce or even stop making payments without the risk of policy lapse.

Avoid Tax Payments

The cash that builds in Permanent life policies is not taxed till it is withdrawn. Additionally, you can avoid even those extra taxes by applying for a loan against the account. This makes permanent life insurance highly beneficial for people from high income groups, who can maximize their tax-deferred savings. Additionally, as permanent insurance lasts a lifetime, it is suitable for senior citizens who have illiquid estates and wish to pass on their money. Here, the death benefit is even more than what they would be able to save.

Buy Permanent Life Insurance Singapore from a Credible Provider

Main FeaturesIf you believe that you are a candidate for a permanent policy, it is advisable to find a provider that offers beneficial policy offerings. Use the power of the Internet to explore different permanent life insurance providers and choose the one that offers the maximum benefits. When it comes to life insurance, the right choice can make all the difference!