Advantages / Disadvantages of Permanent Life Insurance
Posted in Life Insurance , Permanent Insurance
September 25th, 2009
People who are thinking about getting permanent life insurance need to do a thorough evaluation of its advantages and disadvantages. If you have a spouse or domestic partner, and children, then there is no question that you need to get some form of life insurance: your loved ones need to be protected financially in the event that you suddenly die. Permanent life insurance is one type of life insurance plan that addresses that need, and while it may be the perfect solution for some people, that may not be the case for everyone.
Advantages of Permanent Life Insurance
- Permanent life insurance is a policy that will be on-going for the rest of your life
- Flexible payments means you will be putting money into it either all at once, in a single lump payment, or every month
- The money you put into a permanent life insurance policy accrues and earns interest, either through a rate offered by your insurance provider, or from interest earned by the cash value of your permanent life insurance being invested in something like the stock market
- You can start accessing the cash value of your permanent life insurance policy once it builds value
- A great way to plan for retirement
Disadvantages of Permanent Life Insurance
- The biggest disadvantage to a permanent life insurance policy is the cost
- You may already have outside retirement investments linked to the stock market
To learn more about the advantages and disadvantages of permanent life insurance, be sure to consult with a life insurance professional.