Permanent or Term?

Many people ask,

“Which kind do I need?” 

“What is the difference?”

Good questions…Keep Reading to Learn the Answers!

Permanent Life Insurance is coverage that pays out regardless  of  how long we live.  Understandably, therefore, the cost is higher to begin with, but with the advantage that the premium stays the same  for the duration.

Term Insurance is coverage that lasts for a specified term of time… 10 years, 20 years, 25 years, 30 years. Since the coverage lasts for a set period of time the cost is lower.

Ideally, a person has  both types of coverage. Regardless of the type, our beneficiaries will receive the death benefit without taxation!

Term Insurance is used to parallel specific needs – like children rearing, education, a mortgage, consumer debt, etc. The Face Amount of the policy should correspond to the specific need or concern.

Permanent Life Insurance  is generally purchased in smaller amounts to cover funeral expenses and to leave a little behind for those we love.   Unique to Permanent Life  Insurance is the accumulation of cash value that can be borrowed against or used as collateral at some future date.  Unlike the old “whole life” policy and “variable” policy that some found to be undesirable, the newer Permanent Universal Life with a set cost and lasts to age 110, we now have cost effective options without the down side.

Regardless of our choosing Permanent or Term Life Insurance, one thing to remember is that since Life Insurance is purchased with our good health and the price is based on our age…now is the best time to buy Life Insurance!

Many grandparents like myself and of course parent are interested in securing plans that protect  insurability and double in value as our little ones  grow!

Known as Juvenile Plans, I can help you learn about these as well.

For more information, tailored to your needs and situation, please Contact Me!

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