What Is Permanent Life Insurance?

What Is Permanent Life Insurance?

A permanent life insurance policy is a type of insurance in Roseville, CA that takes care of you and your loved ones in the event of your death. Loved ones will have any death related costs taken care of by your life insurance policy, and in many instances they’ll be taken care of as well. Permanent life insurance is something that anyone from any age should look into, and it’s one of the best gifts one can give to their family in Roseville, CA for peace of mind.

 

There are two primary types of life insurance – permanent life insurance and term life insurance. Permanent life insurance lasts throughout your entire lifetime, while term life insurance has a set time period where coverage is available. With term life insurance plans, you may choose the term when you purchase your policy, and these are typically offered in terms like 10, 20, or 30 years.

 

Permanent life insurance policies comes with both a cash value and a death benefit. The death benefit portion of your policy will be paid to your beneficiaries after your passing, and it can be used to take care of debts, funeral costs, and more. The cash value portion of your policy is a separate savings account that may be accessible while you’re still alive. As long as you pay the premiums on your Roseville, CA insurance policy, your insurance will remain until the time of your death.

 

Different Types Of Permanent Life Insurance

 

While there are two primary types of life insurance, there’s also a few different types of permanent life insurance policies as well. These different types of permanent life insurance are:

 

  1. Whole life insurance – Whole life insurance is the most common type of permanent life insurance, and typically the benefits stay fixed for the life of the policy. These have a guaranteed rate of return, and the cash value is guaranteed to earn a minimum amount of interest. Many of these pay out dividends, which can be used to reduce premiums are allowed to generate interest.

 

  1. Universal life insurance – Universal life insurance is one of the most flexible policies. With a universal plan, you may be able to increase your death benefits or reduce monthly premiums if your policy builds enough cash value. Using up cash value to cover premiums, however, may lead to policy lapse.

 

  1. Variable universal life insurance – With variable universal life insurance, you typically have a variety of investment options you can use to increase your cash value. However, losses on these investments will negatively impact your cash value as well.

 

The Right Plan For You

 

Permanent life insurance is a smart investment for any person. Whether you have a family you may leave behind, or you’re on your own, having a policy in place gives you and your loved ones peace of mind. If you’re looking for the right policy for you, contact us at https://asurea.com today to speak with one of our professional life insurance agents.

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