When it comes to life cover quotes plans, you may find several variations but they are generally in two main categories: permanent and term. You’ll notice that Term policies function similarly to other types of insurance policies you may carry, such as car insurance; you pay money each month (for a certain period of time or term, hence the name), and if something bad happens—in this case, your early death—there’s a benefit paid out. Permanent life insurance, on the other hand, has an investment component, and allows policyholders to accumulate a cash value.
Many people consider permanent life insurance to be a smart investment, nobody can argue upon if life insurance is worth it or not. Here are few pros and cons to help you better decide if a life insurance plan is a worthy choice for you or not.
Pros and Cons of Permanent Life Insurance
When it comes to discussing the pros and cons there are many arguments in favor of using permanent life insurance as an investment. However, many of these benefits aren’t unique to permanent life insurance or life cover quotes. You can wonder if you can find the same benefits without paying the high management expenses as well as the commissions of the agents that usually come with permanent life insurance.
1. Policies can be kept till the age of 120, as long as you maintain paying the premiums.
One of the benefits of permanent life insurance in comparison to term life insurance is that you don’t lose your coverage in a pre-set number of years. A term policy is always for a limited time period hence, it’s not long term or permanent. A term policy ends when your contract’s date expires, which for many policyholders is in their 60s. But by the time you’re 120, who will need your death benefit? Most likely, the people you originally took out a life insurance policy to protect—your spouse and children—will either be self-sufficient or have also passed away. However, if you anticipate people being financially dependent on you beyond the length of a typical term policy (for example, a disabled child), this benefit may be attractive to you.
- 2. You can borrow against the cash value.
If you’re in need of money for any personal necessity such as buying a home or paying for college, you can borrow against the cash value of a permanent life insurance policy. Further, some retirement plans, make it difficult or even impossible to take out money for such purposes.
The benefits of getting life insurance go a long way, you may feel that you don’t need it but it’s not just for you. If you get a heart attack in your 40’s and die, at least your spouse and children won’t be left penniless, your life cover quotes will cover all their expenses and needs.
