Permanent Life Insurance!
Permanent Life Insurance really isn’t a type of policy, it is really a type of life insurance. There are two distinct separate categories of life insurance and insurance plans. The first being Permanent Life and the other is Term Life Insurance, within the permanent category you have very different and distinct types of policies.
Whole Life Insurance is the first type of permanent life policy, it is a policy that is put in place for the whole of your life hence its name (or to age 100) when the policy endows. Whole Life has gotten a pretty bad wrap here in the last 10-15 years or so, for the most part only career agents (Northwestern Mutual, Mass Mutual, New York Life) sell this type of product with any volume. This product can be a great tool if funded correctly and used in the right circumstance, also it is not subject to the volatility of the stock market. The dividends paid on some of these policies can be quite attractive so for uses in business insurance or some sort of supplemental retirement income plan they can be great tools.
Universal Life Insurance is also a permanent type of life insurance coverage, but it is much more flexible in the design aspect compared to whole life and term life insurance (which is not permanent). But just like whole life it does build cash value inside the policy but is much more interest rate sensitive as opposed to dividends being declared by the company like whole life. Universal and Whole Life are typically not cheap life insurance policies, the insurance premiums on these plans can be ten to twenty times that of term life. It all really depends on what the purpose of the insurance is for that is why selecting a good life insurance agent will help you make an informed decision. Lifetime Insurance coverage is also available on universal policies in the form of guaranteed no lapse type of policies.
Variable Life Insurance of VUL is the third type of permanent life insurance that we will review for you, variable life is also a flexible premium adjustable type of life insurance. In a VUL the policy owner has the option to pick sub accounts in the policy that are invested in the equity markets. What this means is that the policy owner can get a rate of return that could be much higher than what is offered with whole or universal life policies. The reverse is true as well, if the equity markets go down drastically you can lose some of the monies that were invested for you in the policy. Variable Life can be used for individual insurance needs and for business need in some sort of deferred compensation or executive bonus program.
Which permanent life insurance plan is best for you?
The best life insurance plan for you will depend and vary on many different factors, to get the best life quotes and to find affordable life insurance rates is not that difficult these days. You can get online insurance quotes from many web sites and companies, but remember the best life insurance is the one that you can afford to pay on and solves the needs of your family. Please make sure you budget wisely in this process.
Survivorship Life Insurance is a type of policy that is typically used in estate planning and other high end wealth transfer techniques, this policy is also know as a Second to Die or SUL in the insurance community.