Consumers need life insurance to cover their funeral expenses and provide benefits for their family. After the cost of burial is deducted, their family receives the remaining balance. These consumers have the opportunity to choose Life Insurance Term or permanent coverage.
What is Term Life Insurance?
Term life insurance identifies a specific time limit when the policyholder buys it. This is a beneficial opportunity for individuals with a tight budget. The family receives the benefits in the event the policyholder dies during this time limit.
Some consumers use these policies as a way to acquire funds to settle debts. They could use them as an opportunity to offer help with college expenses. The insurer helps these consumers to accumulate an adequate value through the policy. However, they must use it before the term runs out.
Consumers who acquire these policies negotiate terms that allow for conversion. This allows them to convert the term life policy into a new product, if they prefer. With these policies, they have the opportunity to renew them. It’s best to determine if medical examinations are needed at different points of their lives.
What is Permanent Life Insurance?
Permanent life insurance doesn’t impose term limits. It is available throughout the policyholder’s life. These products provide a method of saving money. The policyholder or their family won’t pay taxes for the policy until it is cashed in.
The policies offer an opportunity for the policyholder to use any accumulated savings to cover their premiums. The policyholder makes decisions about the money saved. There aren’t any restrictions applied to these funds. The policyholder uses the policy as collateral if they need to borrow money in the future. However, the insurer deducts the loan value if it isn’t paid off at the time of the policyholder’s death.
Policyholders have choices about their life insurance policies. They evalaute the benefits of the policy opportunity to determine what choice meets their needs. Consumers who purchase a life insurance policy at an earlier age could reduce their premiums. To learn more about Life Insurance Term contact Perdue Insurance Group for more information about these benefits.
