5 Facts about Permanent Life Insurance
Permanent life insurance never expires. As long as you pay the premiums, the insurance remains active. It also acts as a savings plan in addition to providing a benefit to your beneficiary. Here are 5 facts to know about permanent life insurance.
1. Permanent life insurance policies gain value. As the policyholder, you can borrow from your own life insurance policy. Policies that gain value are called whole life and universal life permanent insurance. But if you borrow from the policies, you should try to repay the money. If it’s not repaid upon your death, it will lessen the amount your beneficiary receive.
2. Whole life policies have a premium that never changes. No matter how long the policy remains active, you’ll always pay the same premiums. This makes it easy to budget for the monthly cost of your policy.
3. Universal life policies have flexible premiums. You can change the amount you pay per month to better fit within your current budget. You can also use the value accumulated in the policy to pay the premiums.
4. The growth of a policy varies. Your insurer sets the minimum interest rate. But if the account gains more interest than expected, your insurer can credit some of the excess to your policy.
5. You can get more than one life insurance policy. If you feel it’s necessary, you can get more than one life insurance policy. Most people only need one, but there are circumstances in which you might feel your coverage is insufficient.
Contact your insurer to learn more about life insurance and its benefits.