subject: Understanding A Permanent Life Insurance Quote [print this page] Insurance can be a tricky thing; if you find yourself struggling to understand a permanent life insurance quote, you're not alone. With different kinds of policies, different options, and different companies, there's a lot to consider when purchasing permanent life insurance. Permanent Life Insurance is also called whole life insurance. The idea behind this kind of coverage is that it will help protect the financial security of your family upon your death, no matter when in life that occurs. Moreover, your family can usually access these benefits without paying any significantly increased amount for income tax.
Typical term insurance, alternatively, covers you for a particular length in years and does so at a lower premium than whole life coverage. Moreover, you usually don't get any cash back of the term. Nonetheless, term insurance may be a good choice for families they cannot afford to pay a higher premium at a certain time of life, but may anticipate getting permanent insurance later. If you do consider obtaining a permanent life insurance quote to compare with term life insurance, it is important to realize that there will be a significant discrepancy between the two. Because permanent insurance has an investment component and lasts as long as you do, the premiums are correspondingly substantially more.
When you obtain a permanent life insurance quote, there may be some differences based on whether the policy offers traditional whole, and variable, or universal insurance. Traditional whole life insurance has a set premium and offers a minimum growth rate. Universal insurance allows you to change your premiums which, in turn, change your benefits. Variable insurance allows you to decide how the money is invested, giving you more control over the growth potential.
Before you get overly excited about any particular permanent insurance quote, you will absolutely want to see what the growth amount will be and whether or not you have control over it. If you don't have any control over it or ability to change it, it's possible that while the life insurance aspect is helpful, it may be a poor investment. It is often more cost effective to invest your money into other avenues of finance rather than into permanent insurance.
For those people less concerned with investment growth and more concerned with the actual insurance aspect of a policy, a major part of your permanent insurance quote will be determined by the payout upon death. Also known as the death benefit, this payout amount is often the single most important factor in the rate you'll pay for this type of insurance. Individuals that may be older and/or have estates or assets that are not liquid, such as small businesses, and often choose permanent insurance. In such cases and the death benefit is usually significantly greater than the amount the individual or family would have been able to save in the same amount of time.
There are many details inherent in a permanent life insurance quote. It can oftentimes be a challenge to determine what type of insurance is best for you and your family; and only you can determine if permanent insurance is your best option. That said, never be afraid to obtain more information or ask questions of agents or companies you trust.
by: Gen Wright
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