Permanent Life Insurance
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When it comes to protecting your family’s financial future, life insurance can provide valuable peace of mind.
With all the increasing risks and uncertainties we’re facing every day, it’s more important than ever to have a plan in place to provide financial security for our loved ones.
That said, getting the right life insurance can be a tricky subject.
Let’s explore permanent life insurance and why it’s important to consider getting a policy in 2023. Whether you’re just starting to think about buying life insurance or looking for ways to enhance your existing coverage, this article will provide you with the information you need.
What is a Permanent Life Insurance Policy?
Permanent life insurance provides lifelong protection to policyholders. Unlike term life insurance, this type of policy allows you to remain covered for the duration of your life as long as you maintain premium payments.
Even better, permanent life insurance policies typically include other features such as cash value accumulation, loan availability, and investment opportunities.
The payout from a permanent life insurance policy can cover expenses such as funeral costs, outstanding debts, and living expenses for surviving family members.
It can also provide financial support for dependents, such as children or elderly parents, and can be used to fund future goals, such as education or retirement.
What Are the Types of Permanent Life Insurance Policies?
Life insurance is an essential safety net to ensure that your family will be financially secure even in the face of tragedy. However, everyone has different needs, which is why there are several types of permanent life insurance available on the market.
Whole Life Insurance
This type of permanent life insurance protects you for your entire life and offers fixed premium rates.
This means the premium amount you pay each month will stay the same, even as you age. Whole life insurance also comes with a cash value component that can be used to save money and make investments.
Universal Life Insurance
Like the previous kind of permanent life insurance, this policy also builds cash value you can access.
However, its main draw is its flexibility. With this policy, you can modify your premiums and benefits, which is great for people looking to ensure protection at the most efficient costs.
This makes it one of the most affordable options when it comes to permanent life insurance.
Variable Life Insurance
This kind of life insurance policy includes an investment component that you can invest in various financial instruments, such as investment funds, money markets, and more.
That said, although policyholders can choose where to put their investments, they have little control over it because insurers typically have fund managers that make all the decisions.
The advantage is that the cash value can grow much faster. Also, while variable life insurance costs more than whole life or universal life insurance, it’s still not the most expensive type of permanent life insurance.
Variable Universal Life Insurance
VUL is a type of permanent life insurance that combines the features of traditional whole life insurance with investment options similar to those found in mutual funds.
Unlike other permanent life insurance policies, VUL policies are more flexible in terms of premiums, death benefits, and even the way premiums are invested.
The downside is that it comes with higher risks. If the investments perform poorly or experience losses, the cash value may decrease and could lead to an increase in premiums or even a lapse in coverage.
Additionally, VUL is the most expensive permanent life insurance option due to higher management fees and the greater amount of control it gives policyholders.
How Much Does a Permanent Life Insurance Policy Cost?
Permanent life insurance demands a higher monthly premium compared to term life insurance. However, it does provide more benefits, which can be incredibly useful for those who are committed to long-term financial security.
Nevertheless, permanent life insurance costs depend on multiple factors, such as the policyholder’s age, health, and lifestyle. It’s best to consult a life insurance expert to determine what kind of permanent policy would fit your needs and budget.
The best permanent life insurance balances the three most important elements: premiums, coverage, and benefits.
Understandably, it can be difficult to figure all this out on your own – but Magnum Insurance is there to help. We offer permanent life insurance policies tailored to your unique needs and budget.
No matter what kind of permanent life insurance policy you’re looking for, Magnum Insurance can provide the best coverage at an affordable rate. Get a hassle-free quote today!
Magnum Insurance makes Life Insurance easy
Insurance should be easy, and with Magnum Insurance, it is. Get your online insurance done at your convenience now!
Flexible payment options including cash. Call, visit a store, or make a payment online by logging into your account.
Manage your policy. File and track a claim. Do it all with a few taps on your smartphone.
No one likes to file or manage a claim. That’s why we make the process easy with online forms and dedicated agents.
Get a free Life Insurance quote today
Get the Life insurance you need with Magnum Insurance. Talk to an agent today by giving us a call or visiting one of our offices located across Illinois and Indiana.
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