An increasing number of people are opting to purchase permanent life insurance than the more common term life insurance products. For the past few years, consumers are leaning towards permanent life due to the many benefits it offers.
If you are currently own a term life insurance nearing the end of its ‘term” , you may want to shift to permanent life insurance for its better features.
What is permanent life?
As the name implies, this life insurance product gives permanent or lifetime insurance benefits to policy owners. Whole life and universal life policies are categorized as permanent life insurance products.
Here are some of its benefits:
- Cash value accumulation
The cash value of a permanent life insurance is commonly less than its true face value. Although this is true, the added benefit of owning permanent life is that it can be used as extra source of funding among its policy owners. The policy owner has the right to borrow against a policy’s cash value.
- Permanent means that it cannot be terminated by the policy owners
The maturity date of permanent life insurance is set at the age of 100. This means that once a policy owner goes well beyond this age, they can cash out with the benefits of both cash value and guaranteed death benefits.
- Free access to cash value at any time
Policy owners of permanent life typically pay four to five times more than term life insurance policy holders. Although this is the case, policy owners are given quick access to cash accumulations that are earned by their policies through the years.