subject: Renewed Interest In Life Insurance [print this page] According to a new LIMRA report (LIMRA is the life insurance industry research standard), while the economy is going down, life insurancesales are going up. This is an interesting trend to note, especially when observing the particular type of life insurance being purchased the most-- permanent life insurance.
There are a few pointed reasons that explain why life insurance sales overall, and then specifically permanent life insurance sales, have gone up despite downward movement in spending habits. Perhaps these few reasons are the same ones that have been on your mind lately; take a look to see why it makes sense to have life insurance protection, now more than ever.
With lesser job security, people have begun to rely less on the ability for any surviving spouse and children to get by, and provide for them with very affordable term life insurance policies. A payout upon death is also a huge help for any surviving family members who can use it for ongoing expenses like food, shelter and clothing to survive and last an economic downturn.
With lack of trust in government safety nets like SSI, many are turning to resources that will help them provide for their own future, by signing up for long term care protection and savings for retirement. A permanent life insurance policy, offering anywhere between 3% and 5% steady growth of cash value over a number of years, is starting to seem like a safer, reliable investment for many investors, especially those who have been seriously burned in the 2008 financial crash.
Life insurance rates have been at near historic lows in this decade. This is a well-known fact about the industry, especially prices for term lifeinsurance. This is good enough reason to buy life insurance now before prices start rising again. Even though the life expectancy has improved from decades before and the prevalence of online aggregator websites selling life insurance has helped keep overall prices competitively low, market trends can suddenly shift, causing prices to rise without caution. If you don't have a policy yet, we strongly urge you to consider buying one, also because prices are low the younger you buy.
The death benefit from a accuquote term life insurance policy is usually tax-free. This is for both, term and whole life policies. Growth in cash values for permanent policies is also tax-free, but you should know that if this exceeds the death benefit, withdrawal of this amount is usually subject to tax penalties. This is a rare occurrence which is why people (especially those in high income brackets) still prefer to buy these types of policies.
The cash value in a permanent policy is your cash value, which means it can be used as a savings or emergency fund at any time you wish. Always read the fine print about borrowing from cash value before buying your policy as every policy structure varies greatly. Some may charge heavy levies for doing so when the policy is relatively young. For optimum growth of cash value, it is best to pay into it regularly, possibly with the aim to pay it in full using the "Paid Up Additions" option, and then letting it grow for at least 8 - 10 years.
Even though term life insurance showed a decline in numbers despite being the largest segment of life insurance products in the United States, this doesn't mean that you shouldn't buy a term life policy if it fits your needs. While the growth in sales may indicate that more people are relying on permanent life insurance products for long term security, permanent life premiums are still at least four times higher than term life premiums initially. For some families, this may be too much to afford even though life insurance is so important. Having some form of coverage, even if it a small short-term policy, is better than not being able to afford any coverage at all.
Take advantage of these pointers to help you understand the need and benefits for best life insurance protection. To get the best deals, always shop for and compare as many quotes as possible. Start at an aggregator website that will help you find the best deals without compromising on quality. Life insurance is a relatively stable, low-risk buy, so you can be rest assured your family's future will be in safe hands.
by: Pat Cassidy
welcome to Insurances.net (https://www.insurances.net)
