| most of us do not like to think of the subject of our | | | | Permanent life insurance is designed to provide |
| own death, the fact of the matter is that death is a | | | | coverage for the duration of your life, although in |
| part of life and in order to protect our families we | | | | some cases, the policy may be limited up until a |
| need to give some thought to the subject of life | | | | specific age. When you reach that age, the cash |
| insurance. The more you understand about life | | | | value of the policy will be paid to you. Because you |
| insurance the better you can prepare not only for | | | | are building a cash value with permanent life insurance |
| your final expenses and protect your family. | | | | you can also withdraw from the policy in order to |
| First, understand there are different types of life | | | | pay for important expenses such as education or |
| insurance. The type that is best for you will depend | | | | home improvement costs. Another major advantage |
| on a variety of factors including your current age and | | | | to permanent life insurance is that it allows you to |
| health condition. The two major types of life | | | | build up cash value that is tax-deferred. This generally |
| insurance policies that you need to concern yourself | | | | only applies while the policy is in force; however. |
| with are term life insurance and permanent life | | | | There are two divisions of permanent life insurance; |
| insurance. | | | | whole life and universal life. A whole life policy will pay |
| Term life insurance provides coverage for a specified | | | | dividends under certain circumstances and also has |
| period of time. This type of coverage will usually be | | | | the advantage of premiums that do not fluctuate. |
| less expensive than permanent life insurance. Policy | | | | With a universal life insurance the premium payments |
| periods are usually divided up into easy periods such | | | | can be changed by the owner of the policy. This |
| as one, ten or twenty years. In the event you die | | | | type of flexibility can be advantageous when you |
| within that time period, the death benefit will be paid | | | | have a life changing event. |
| to your beneficiaries. On the other hand, if you should | | | | Permanent life insurance works well for individuals |
| reach the end of the time period and you are still | | | | who are interested in long term insurance and who |
| alive your protection will end unless you elect to | | | | like the idea of building up cash value with their policy |
| renew the policy. The option of building up cash value | | | | they can use to meet future needs. It is important |
| is not available with this type of insurance policy. | | | | to recognize this type of insurance is more expensive |
| Individuals who only need temporary life insurance | | | | than term insurance. It should also be noted that if |
| and those who need a large amount of coverage but | | | | you take out a loan against your policy, your death |
| who can’t afford to spend a lot benefit from | | | | benefit will be reduced. |
| this type of policy the most. | | | | |