Unlike term life insurance, which promises payment of a specified death benefit for a specific period of years, permanent life insurance lasts the lifetime of the insured (hence, the name), unless nonpayment of premiums causes the policy to lapse. Permanent life insurance premiums go toward both maintaining
the policy’s death benefit and allowing the policy to build cash value. The policy owner can borrow funds against that cash value or, in some instances, withdraw cash from it outright to help meet needs such as paying for a child’s college education or covering medical expenses.
There is often a waiting period after the purchase of a permanent life policy during which borrowing against the savings portion is not permitted. This allows sufficient cash to accumulate in the fund. If the amount of the total unpaid interest on a loan, plus the outstanding loan balance exceeds the amount of a policy’s cash value, the insurance policy and all coverage will terminate. Permanent life insurance policies enjoy favorable tax treatment. The growth of the cash value is generally on a tax-deferred basis, meaning that the policyholder pays no taxes on any earnings as long as the policy remains active. As long as certain premium limits are adhered to, money can also be taken out of the policy without being subject to taxes because policy loans usually are not considered taxable income.
Permanent life insurance offers several benefits, including:
Term life insurance is a type of life insurance policy that provides coverage for a specified period of time, typically ranging from 1 to 30 years. If the insured person dies during the term of the policy, the policy pays a death benefit to the beneficiary designated by the insured person. The death benefit is typically a lump sum payment and is designed to provide financial protection to the insured person's family or dependents.
Term life insurance policies do not accumulate cash value and generally have lower premiums compared to permanent life insurance policies, such as whole life or universal life insurance. This makes term life insurance an affordable option for individuals who need life insurance coverage for a specific period of time, such as when they have young children or a mortgage to pay off. Once the term of the policy ends, the insured person may have the option to renew the policy or convert it to a permanent life insurance policy, depending on the terms of the policy.
Term life insurance offers several benefits, including:
Providing a life insurance check to any who has lost a loved one is the hardest part of what we have to do. It is also one of the most important responsibilities we have to make sure all of our clients are secured with the right life insurance plan so that the financial burden doesn't exist and the family can move forward. We are experts in guiding anyone with a detailed process to make it easy and affordable. We cover anyone from a newborn, business partner, families, elderly and everyone else!
PHONE: 651-263-0241 EMAIL: email@example.com FAX: 651-344-4416
Lonsdale, MN 55046 - Coon Rapids, MN 55448 - Blaine, MN 55449
Main Office: (651) 263-0241
Copyright © 2018 Renewal Insurance - All Rights Reserved.