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/

Advertisements

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

Term vs. Permanent Life Insurance: Which One is Ideal for You?

Permanent Life Insurance

On hearing the word ‘life insurance’, the first thing that comes to our mind is security against the uncertainties of life. It is undoubtedly true that life is uncertain and we never know when we might have to lock horns with trouble. In such a situation, life insurance plays a very important role by providing comprehensive financial security to your dependents. You would definitely want your family to be financially stable even after your death. If so, there is no better option than buying a suitable life insurance policy that can cover all the needs of your family.

Once you decide that you need life insurance, the next important step is to look for a policy that can match your requirements. Broadly speaking, you have two options:

• Term life insurance
• Permanent life insurance

Term vs. Permanent Life Insurance
Out of these two options, most people go with the second one. This is because permanent life insurance has more benefits than term life insurance. There are many people who are unable to select an appropriate policy as per their needs as they aren’t completely aware about what each of the options hold. To clear the confusion, it is necessary to understand both these types of life insurance.

Term life insurance
If you are looking for a life insurance policy that provides coverage for a limited period of time and has a fixed rate of payment, then term life insurance is an ideal option. Under this policy, if the insured dies during the term, their beneficiaries get the benefits; however, if the person lives past the pre-determined duration of the policy, the policy expires and there is no benefit for the insured.

Permanent life insurance
Permanent life insurance is the best option for people who wish to get lifetime coverage. Permanent life insurance allows people to take a loan against the cash value of their policies. However, for taking a loan, a person needs to have a good amount of cash value as borrowing against the policy’s face value is not allowed. The premiums of permanent insurance policies are usually higher compared to term insurance.

To encapsulate, it can be said that term life insurance is for those who want to pay low premiums, even if that means limited coverage; on the hand, permanent life insurance is an ideal option for those who need comprehensive coverage and can afford to pay higher premiums.

If you have any query or need a quote? You can use enquiry form available on below given websites:

Universallife.com.hk

Universallife.co.id

Various benefits of permanent life insurance

It is the biggest reality of life that life is uncertain and we never know where life will take us. Therefore, in order to deal with the various uncertainties of life, it is essential to make some important decisions regarding the financial stability of your family. One of the most important decisions is to choose the right kind of permanent life insurance policy to ensure the financial security of your family.

One of the main factors that play an important role in the choosing of a life insurance policy is your family’s needs and requirements. Since you are opting for life insurance so that you can provide them with financial security against the odds of life, your family members need both pre-death and post-death coverage. If the permanent life insurance policy is chosen with diligence, it can definitely prove to be of great benefit.

Benefits of permanent life insurance:

Happy retirement

Most people prefer to opt for permanent life insurance policies. This is because its terms are much better compared to normal term insurance policies. Some of the benefits that influence people to choose permanent life insurance are:

• Permanent life insurance provides lifetime coverage.
• You can take a policy loan by borrowing against your cash value of the life insurance scheme.
• Permanent life policies offer death benefits that can be beneficial for your family after your death.
• It is considered as ‘cash value insurance’ since, a part of your premium (after the deduction of insurance expenses) is invested by your insurance company and the accrued interest builds up your cash value overtime.

Based on the above mentioned benefits, you should opt for permanent life insurance to ensure maximum security for your family.

Want to know the importance of permanent life insurance? Read on!

Universal life

These days, most of the people consider the option of buying a permanent life insurance policy in Indonesia so that they can create a well-established buffer for the security of their family members after their death. Everybody knows that life is pretty uncertain and in today’s time. If you haven’t planned for the future of your family, it is going to be hard for them in case of uncertain events in life. To avoid such challenges and difficulties, most people prefer to opt for life insurance with the help of which, they can create financial provisions for family and loved ones following their death as a part of a sound financial plan.

Importance of permanent life insurance
Permanent life insurance

If we look broadly into the types of life insurance, we would get two basic types i.e. term insurance and whole life or permanent insurance. The policies of the former offer death benefits. This means that if you die, you will get money back, but if you live past the pre-determined length of the policy, you will not get any benefits. The later one i.e. the permanent life insurance policies are open-ended and also accumulate a cash value that the policyholder can earn dividends from and borrow against or cash-in upon surrendering the policy. Out of the two types of life insurance policies, most people prefer to opt for permanent or whole life insurance. The reasons behind the increasing popularity of these policies are its many benefits versus traditional policies.

Types of permanent life insurance
Permanent life insurance can be categorized into mainly two types which are:
1. Whole life insurance
2. Universal life insurance

life-insuranceThe whole life insurance is meant for satisfying long term goals by offering consumers consistent premiums and guaranteed cash value accumulation whereas, universal life insurance policies focus on giving consumers flexibility in the premium payments, death benefits and a savings element in their policy.

Now, with the varying benefits of both types of permanent insurance policies, it can become a bit difficult for many people to decide which policy is the best one for them as well as for their family. To make the task of picking up the most suitable policy easier, it is strongly recommended that you analyze your family’s needs, both pre and post-death. This will surely help you to make better decisions for your family.

3 Factors to Know Before Selecting Permanent Life Insurance in Hong Kong

To make the most of your insurance, it is important to select it properly. Selecting a suitable policy requires a three-step process.

Life Insurance

1. Establish your goals for the insurance. Are you trying to replace your income for your family or other dependents for a limited time, or require to plan and save for the future?
2. Make sure you estimate the total value i.e. how much insurance you require and how much you can afford to pay for it?
3. Compare various types of insurance policies to select the one that is best for your requirements.

If you are looking for lifelong benefits, you might require permanent life insurance. To help you figure out the best possible option as per your requirements and particular situation, we have outlined 3 significant factors you need to consider when selecting permanent life insurance, Hong Kong.

1. Different types of permanent life insurance
Broadly speaking, there are about three types of permanent life insurance including whole life, variable life and universal life; however, there are a few variants within each type. Each type has different benefits for different requirements. Whole life insurance provides a fixed premium along with guaranteed cash benefits. Universal life insurance provides flexible premium payment options and variable insurance allows the policy owner to choose between mutual fund type investment options.

Permanent Life Insurance

2. Works as an investment vehicle
Most people select an insurance policy as a replacement to their income in case of their death. Permanent insurance, on the other hand, also functions as an investment strategy. It also has an added advantage of tax-favored cash growth. If you take a loan against the cash value of your insurance policy, the loan amount will not be taxable. In fact, if you withdraw the cash from the cash value of the policy, the amount will be tax-free.

3. Medical Exam
A medical exam is needed before buying permanent life insurance because of the duration of the policy. Although, permanent life insurance is an option even for those who have medical conditions or illness; there are numerous risk classes and your premium amount will be higher if you have any medical condition.

Conclusion
Always check the credit rating of your insurance company before buying permanent life insurance Hong Kong. If you are selecting universal life insurance or variable life insurance, you must also check out the underlying performance of the investments available from the company.

To know more about Permanent Life Insurance in Hong Kong visit: Universallife.com.hk

Permanent Life Insurance Indonesia for Complete Peace of Mind

If you are unable to decide, whether you need to buy a life insurance policy or not, it is important to ask yourself this one question – “Would my death leave my family or anyone close to me in a financial bind?” If the answer is yes, it may be time to get serious about finding a suitable life insurance policy. If selected properly, life insurance can offer peace of mind, ensuring that your debts or family financial requirements will be taken care of after you are no more. Permanent life insurance is a great choice if you want lifetime insurance protection. However, before you buy an insurance policy, it is important to know more about the benefits of permanent life insurance.

Permanent Life Insurance
Life InsuranceAn insurance policy that provides lifetime protection (no expiry date), Permanent life insurance is a financially stable way to meet your family’s financial requirements after your death. However, premiums in this policy should be paid on time. Most permanent policies provide an investment component along with the insurance coverage. This component, in return, makes the premium amount much higher than those of term insurance. The investment may offer a fixed interest rate or can be in the form of bonds, mutual funds and market securities. The savings option present in the permanent life insurance policy permits the policy owner to build a cash value amount within the policy that can be easily distributed or borrowed sometime in the future.

The Characteristics
• Expensive, but beneficial
• Permanent insurance protection
• Build cash value
• Loans are allowed against the policy
• Favorable tax treatment of policy earnings
• Level premiums

Types
There are three basic types of permanent insurance :
• Whole life
• Variable life
• Universal life

Permanent life insurance

Out of all the three, the two most common are whole life and universal life insurance. Whole life provides lifetime protection, for which the policy owner is required to pay a predetermined premium. It is the most expensive life insurance available. On the other hand, universal insurance separates the investment and the death benefit portions. In this policy, you can change your premium amount and death benefits as per your requirements.

Conclusion

While seeking insurance, do not rush! Select a policy that meets all your requirements and budget. When you buy life insurance, you are betting that you will live, but it also secures your peace of mind in case you do not. Look for permanent life insurance, Indonesia to protect your family in the sudden event of your death.