Why is Permanent Life Insurance Preferred over Term Life Insurance?

Most people consider permanent life insurance as the best investment option due to the flexibility and benefits it provides. It is true that life is uncertain and nobody wants to put their family’s future at risk. To ensure that your finances are well-planned, it is important to select a suitable investment option. By selecting a suitable life insurance policy, the owner of the family can make financial plans for their family so that their dependents can face the challenges of life even after their death. There are two types of life insurance, i.e. term life insurance and permanent life insurance. Out of these two options, most people opt for the latter.

Permanent Life Insurance v/s Term Life Insurance
While buying a suitable life insurance policy, most people prefer permanent life insurance over term life insurance. This is because the benefits of permanent insurance policies are more compared to term insurance. A term life insurance policy provides coverage for a limited period and has a fixed rate of payment whereas; a permanent life insurance policy provides flexible payment options and lifetime coverage.  Permanent life insurance gives policy owners an opportunity to take a loan on their cash value amount, if need be. This policy also accumulates a cash value through which the policyholders can earn dividends.



Types of Permanent Life Insurance
Broadly, there are 2 types of permanent life insurance:

1. Whole life insurance: It helps you achieve your long-term goals because it offers consistent premiums and guaranteed cash value accumulation
2. Universal life insurance: It offers great flexibility to the policyholders in death benefits and premium payments, among others.

If you are not able to decide which policy is best for you, you can seek the assistance of a competent insurance provider.