When people talk about Permanent Life Insurance they are talking about something called a whole life insurance policy most of the time. However, life insurance policies that are not term are all considered permanent life policies. This is because they are intended to last until the end of life thus paying out the contracted amount to your beneficiaries. That is unless the premiums are not paid then the policy would lapse and be void. This applies to all types of life insurance products.
The whole life insurance policy is considered the simplest because it has a set death benefit, a set premium and a graduated cash value that is dependent on the amount of the death benefit and premiums applied. The next type of permanent insurance is universal life insurance that is a type of hybrid policy where the cash value is tied not only to the amount of the death benefit and premiums applied but also to the current interest rates. Both of these policies can be sold by a licensed life insurance agent in your state.
If you opt for the next type of insurance policy, variable life insurance, then you will need an agent that has both a life insurance and securities license in your state. This is because a variable life policy is tied to the death benefit, the premiums paid and an investment portfolio that is tied to the insurance policy. This is also true for variable universal life insurance as well, which puts the the best of a variable policy and the best of a universal policy in one.
The real issue for most of us is asking the right questions so we can decide which one of the many different life insurance products are right for us. That’s why it’s really important to understand that there is no “one thing that fits all”. It takes some time to go through the evaluation phase and explore all the options to find the one that works best for a given situation.
You will hear a lot of broad advice about what kind of insurance is best as well as how much you should be covered for and it does get you thinking about the coverages you might need. At the same time a 19 year old single female with one child is in a very different situation than a 29 year old father of 4 with a stay at home wife. You cannot compare needs and wants in a quick “over the counter” formula that many places recommend.
As an alternative, we recommend going through a complete analysis so you know and understand where you are and where you are going as well as what those left behind would need if something happened to you. It also will help you discover what you will need if something happens to the someone in your life that you or your children count on for care. These are just a few of the things that are important to know before you ever decide what type of life insurance to purchase and how much you should have as well as your spouse and/or children.
If you have additional questions about perm life insurance or would like to talk to someone who can get a questionnaire in your hands so you can start the process of discovery in your life situation, please take a moment to fill out the form below. We are serious life insurance specialists and we will handle your information with care.
Check with the Nashville Life Insurance for more specific Business Life Insurance information. Or for personal insurance start with gathering information on basic whole life insurance and build from there.