LIFE INSURANCE 

 

 

 

There are different types of life insurance.  I combine life insurance into two broad categories which are permanent life  insurance or term life insurance.  The main differences between permanent life insurance and term insurance are shown below:

 

• Permanent insurance builds cash value and term insurance does not build cash value 
• Permanent insurance has a level premium the term insurance premium changes at the end of the term.
• Some permanent insurance policies have flexibility with premium payments where term insurance polices do not
• Some permanent insurance policies allow you to withdraw or borrow cash and keep the life insurance policy in force

Future posts will discuss specific different types of life insurance and the benefits

 

 

 

LIFE INSURANCE 

 

 

Over the next few blogs I will be discussing life insurance.  I am of the professional opinion that everyone should own a life insurance policy.  Life insurance is the only policy that you will purchase knowing if you continue in force someone will receive the benefits.

 

Life insurance is important whether you are poor or wealthy.  Many wealthy individuals that I speak with do not see a need for life insurance; however, I think our present economy would prove that if a loved one had to liquidate due to financial hardship from your death, the family would have an additional financial loss.

 

I also believe the sooner life insurance is purchased the better.  The reason I believe the sooner the better because we can develop health conditions that prevent insurability or increase the life insurance premium. 

 

Please follow the future post to learn about the different types of coverage.