Permanent Life Insurance
Permanent Life Insurance and Life Insurance in general is determined by the premiums paid out. Insurance premiums unfortunately increase each year, but if you take the costs of insurance and you reach an average that extends over a lifetime, what would happen to the premiums? You will notice that the premiums level out. In other words, the premium you pay will not change over a lifetime.
The benefits of Permanent Life Insurance:
- This type of Insurance can offer financial security
- The cover period does not come to an end after a certain period of time
- Premiums remain the same as long as you carry on with the policy
- You will be able to receive a death benefit that is tax free
- If you have a permanent Life Insurance Policy, you may be able to see it as an investment. You will be able to invest or even borrow money.
Term Life Insurance
Term Life Insurance provides a more affordable option, whereby you get cover that lasts for a period of time. You will have access to various options, which will cater to your needs and of course your budget. This type of Insurance is best for those starting out with families, younger adults and those who need something more affordable, that is more for a short term.
When applying for Term Life Insurance, you can choose who your beneficiaries will be. You can also choose the amount you will be covered with. The length of a Term Life Insurance is not lifelong and usually lasts for about 10 to 20 years. Each year there will also be an increase in premiums.
Benefits of a Term Life Insurance:
- On your death, your beneficiaries will receive a tax-free cash payment
- Protection of your family’s financial wellbeing
- It is simple to renew the policy at the end of a term
- Affordability, premiums are less than other kinds of life insurance
- You have the option of turning your Term Life Insurance into a Permanent Life Insurance