What is permanent life insurance?
These refer to insurance policies that provide coverage for as long as you live, given that you keep paying for the premiums. Some policies have a cash component which works much like an investment account. You can withdraw from the cash value once the amount has reached a certain range.
Do you need one?
You may be wondering if getting a permanent life insurance policy is the right decision for you. If anyone relies on you financially; if you are a spouse or parent, then the answer is yes. That’s because a life insurance policy doesn’t provide money for your beneficiaries. It can offer your loved one’s compensation, depending on the circumstances of your death, Forbes says.
How to pick the right one?
Choosing a permanent life insurance policy isn’t something you’ll want to do on a whim. Make sure you choose a reputable insurance provider, one with plenty of years in the business. Check out reviews online about the company. Are there news reports that hint of the company’s shaky financial footing? You’ll want to consider that when you pick a provider.
What else do I need to know?
Do your homework. Read the contract inside and out. Know the terms and conditions. Does the company have an easy and stress-free claims process? That’s going to matter as well. The last thing you want is to pick a provider that’s going to make it difficult for your loved one to claim the proceeds from your policy.
What are the restrictions?
Before you pick a policy, be familiar with any of the restrictions that may apply. For instance, some policies prevent you from withdrawing from the fund value until after a certain number of years. Knowing these restrictions will help you make the right financial decisions in the future.
