What you need to know about permanent life insurance.

When most people think of life insurance, they think about term life policies.  However, there are many other types of life insurance to consider.  For instance, you and your family might benefit from having permanent life insurance.  Here's what you should consider about this type of life insurance. Permanent Life Insurance Defined As the name suggests, permanent life insurance is any life insurance policy that offers coverage throughout your life.  In contrast, term life policies will only offer coverage for a set amount of time, usually 10-30 years.  So, when you select permanent life insurance, you do not need to worry about your coverage expiring. Types of Permanent Life Insurance There are different permanent life insurance policies types to consider.  Here are some of the most popular options:

• Whole Life Insurance- Premiums are fixed, and the cash value component grows at a guaranteed rate. However, this also means that whole life policies tend to be more expensive.
• Universal Life Insurance- Premiums are flexible and can fluctuate between a set maximum and minimum amount. The cash value component's growth is dependent on interest rates determined by the market, but there is a guaranteed minimum annual return.  These policies are cheaper because they are subject to market fluctuations, making them riskier for the policyholder.

Advantages of Permanent Life Insurance All life insurance policies pay out a death benefit when the policyholder passes, and permanent life insurance is no different.  A death benefit is the amount of money that will be paid out to your beneficiaries, usually your immediate family members.  This money can be used to cover your outstanding debts, your ongoing financial obligations, your missing income, your final expenses, and your family's day to day expenses. In addition to death benefits, permanent life insurance policies also offer a cash value component.  Policyholders are allowed to borrow against their cash value component should they need quick money.  Borrowing against your life insurance policy is convenient as you do not need to wait to be approved for the loan.  Additionally, the interest rates on these types of loans are far lower than the rates on traditional bank loans, making them cheaper and easier to pay back.  Please keep in mind that your cash value component grows as you pay your life insurance premiums.  So, you may have to wait a set period of time before you will be able to access the cash value component of your policy. This is what you should consider about permanent life insurance.  Do you have more questions about this form of life coverage?  If so, then contact the experts at East End Insurance Agency.  Our dedicated team is ready to assist you with all your life insurance needs today.