What is Permanent Life Insurance?
Permanent insurance provides lifelong protection, and the capacity to accumulate cash value on a tax-deferred basis. Unlike term insurance, a long-term insurance policy will remain in force for as long as you continue to pay your premiums. Because these policies are designed and priced that you keep over a long time period, this will be the wrong kind of insurance for you personally whether you don’t have a long term need for life insurance policy.
Why would someone want coverage for an extended period of time?
Because contrary to what a lot of men and women think, the importance of life insurance often persists long after the kids have graduated school or the mortgage was repaid. Your partner would be confronted with daily living expenses in case you expired the day after your youngest child graduated from school. And what if your partner outlives you by 20, 10 or 30 years, which is surely possible today. Would your fiscal strategy, without life insurance, enable your spouse to keep up with the lifestyle you worked so difficult to achieve? And would you have the ability to pass to your children or grandchildren?