FAQ: Why is Permanent Life Insurance Popular?
If you are thinking about your future, you are quite possibly thinking about life insurance too. You’re going to get life insurance coverage in order to protect your loved ones and your dependents should you die suddenly. No one who is a primary financial provider likes to think about their loved ones suffering financially without them. One kind of life insurance that might interest you is permanent life insurance. Permanent life insurance is a kind of life insurance that you pay for the rest of your life (although you have the option of making one large, lump-sum payment for it at the beginning). With permanent life insurance, you are building up a cash-value policy which you can access whenever you want to, which might be the reason this type of insurance is so popular.
Extra Retirement Income
Permanent life insurance is popular with people who are thinking about their futures because while it promises a financial benefit to loved ones should you die suddenly, it also is a means for building up a healthy source of retirement income. Let’s say you get a permanent life insurance policy that starts on the first day of next month. You will pay your monthly premium on the first of the month, and on the first of every month after that for as long as you continue working. When you retire, all that money you’ve been paying every month is waiting for you to spend. You can also take out loans against this money, or not touch it at all, and have it be added – along with your permanent life insurance policy’s death benefit – to whoever it is you have named as a beneficiary. So, many people like to get permanent life insurance as a way to save money for their retirement, and in return they get guaranteed income when there are no more paychecks coming in.
To further explore why you should choose permanent life insurance, be sure to consult with a permanent life insurance specialist.