| Permanent life insurance or a whole life insurance | | | | time in their life when kids have grown and do not |
| policy, as it is often called, is life insurance that | | | | rely on parents for their financial support. |
| offers financial coverage for the beneficiary in the | | | | - When compared to term life insurance, |
| event of the policy holder's death. As the name | | | | premiums for permanent life insurance can be |
| implies, it is coverage that is permanent, as long | | | | four to ten times more expensive. If you're on a |
| as life lasts. The premiums usually remain steady | | | | low budget, permanent life insurance may not be |
| during the entire period. One of the main | | | | a suitable option for you. |
| advantages in a permanent life policy is that it | | | | - The extra you pay in premiums for a |
| accrues cash value over the years. In some | | | | permanent life policy could fetch you higher |
| policies, cash value can be used to pay off | | | | interest if you were to invest that same amount |
| premiums in the latter years of the policy. | | | | in an investment of your choice. Permanent life |
| There are pros and cons to every subject and | | | | policies do not allow you to control the investment |
| permanent life insurance is no exception. If you | | | | choices. This is left to the prerogative of the |
| are considering purchasing a permanent life policy, | | | | insurance company. |
| here are a few pros and cons you should | | | | - There are no added benefits combined to a |
| consider: | | | | permanent life policy, such as retirement benefits, |
| Pros | | | | etc. |
| - A permanent life policy accrues cash value. It | | | | - Withdrawing money from a permanent policy |
| may not give you the same kind of profitable | | | | can be a complicated, time-consuming procedure |
| returns as a mutual fund or other investment | | | | when compared with bank withdrawals. |
| options, but it does add investment value for | | | | - Outstanding premium payments, or withdrawals |
| money that you pay as premiums. | | | | on your policy will reduce the face value of the |
| - It is permanent. You have the safety of | | | | policy. |
| coverage for life. | | | | - Premiums need to be paid lifelong, or at least up |
| - The premiums are fixed. You do not have to | | | | to age of 100. A whole life or permanent life |
| worry about rising premium rates for your entire | | | | insurance policy has some unique advantages. For |
| life. | | | | those who can afford the premiums, it certainly |
| - You can surrender the policy at any time, and | | | | offers you benefits that better suit long term |
| receive a full refund of premiums paid to date | | | | financial planning. It is certainly a good option if an |
| along with the cash accrued. | | | | individual needs tax benefits and cash value along |
| - You can withdraw from a permanent life policy. | | | | with protection for loved ones. |
| If situations in your life arise requiring the need for | | | | Online insurance quote providers can quickly |
| extra cash for unplanned expenses, you have the | | | | provide you the best quotes from reliable |
| option to withdraw from your whole life policy, | | | | insurance companies based on your specific needs. |
| tax free. | | | | If you are not sure which type of insurance policy |
| - Permanent life policy can be used as collateral | | | | would best suit your personal situation, many |
| against bank loans. | | | | online insurance quote providers offer professional |
| - After an initial stipulated period of perhaps six | | | | support services with knowledgeable |
| months, a permanent life policy does not lapse, | | | | representatives who can help you with your |
| even if premiums are not paid. Premiums will be | | | | queries and recommend the best policy for you. |
| paid using the cash value accrued. However, your | | | | It is advisable that you look for sites that are not |
| death benefits may be altered because of lapse in | | | | affiliated to any particular insurance company in |
| premium payments. Cons | | | | order to receive professional and unbiased advice. |
| - You may not need coverage for life. Most | | | | Make sure you use sites certified by the Better |
| people need life insurance coverage when they | | | | Business Bureau for a safe experience with |
| have debts to pay, or families to support. People | | | | internet insurance quote providers. |
| in their senior years may not need coverage at a | | | | |