All About Permanent Life Insurance Policies

Life insurance policies typically fall under two broad categories: Term Life Insurance and Permanent Life Insurance. Here we will look at the various kinds of permanent life insurance covers or coverages.

Whole Life Insurance

Also known as Ordinary Life policies, such life insurance covers extend for the entire duration of your life. The premiums are distributed over many years, which are specified at the time of taking the policy. If you outlive that number of years, you still have to continue to pay the premiums for as long as you live. The excess amount is then invested by the insurance company as they see fit. Such life insurance policies give you the dual option of risk cover and savings. However, because the premiums are never ending, it can become quite a burden.

Universal Life Policies

A universal life cover also extends for your entire life but is not as rigid as a whole life policy. In such a plan, you retain the option of increasing or decreasing your premium payments and coverage once you have paid off the initial premiums as set. At such time, you can also determine how much and when you will pay your premiums. As long as you keep making the payments on time, your policy will not lapse.

Variable Life Policies

In such a life insurance plan, your premiums are put into funds for investment. Depending on the performance of the funds, your death benefits are determined. Thus, the proceeds of such a cover are not fixed as they are based on whether your investment increases or decreases in value.

It is best to ascertain your individual insurance needs and then choose a life insurance plan accordingly. Check out each life insurance quote to make sure it is the best one.