Senior Life Insurance

Why do people still shop for whole life insurance? These days we seem to hear lot more about term life. We know that premiums are lower & that term policies are more like buying pure insurance. But many people still want whole life despite higher premiums so there must be some advantages to permanent life insurance.

The simple fact that whole life is permanent should make the first advantage obvious. The policy will cover our lives as long as is paid for or paid up. That means we will not lose coverage when policy expires no matter how much money we have spent the past.

The rates will also stay level & so will the policy death benefit. This means that we do not have to worry about rate increases or benefit reductions. This not always true term policies. Rates may not be guaranteed for the whole term & the death benefit may decrease.

Most the time death benefits are tax free. You can also enjoy the security knowing that you will leave money to your beneficiaries without also leaving an additional tax burden. This is why many people choose to use life insurance as way to transfer estates.

Of course the final advantage permanent policies over temporary policies is the fact that they actually help us grow our assets. This can be great reason to consider whole life over temporary policies. While we pay for coverage we also grow cash account.

If you have built up policy cash account this money can actually be used while you are alive. You can get the money back if you surrender your policy. You can also borrow against this value while still keeping your policy force. Some policies will let you use your cash value to make payments for awhile.

Another use for permanent life insurance has become popular lately. This is called life settlement & means that investors purchase the policies for cash. The cash settlement will usually be less than the death benefit but much more than the cash surrender value. This allows older people to sell unwanted life insurance for money they can use to help them enjoy their lives.

So even though you may hear lot more about term life you should understand the advantages & disadvantages the different types before you make decision.

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