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How do I get a permanent life insurance policy?


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Permanent life insurance offers a lifetime insurance policy, but in order to keep this active, all premiums have to be paid within time limits. Many permanent policies provide an investment or savings component along with the insurance policy coverage. This feature over time may cause premiums to be generally higher than a term insurance policy.


The investment sometimes will provide you with a fixed interest rate, or could offer it in the form of a money market mutual funds, bonds, or securities. The savings part of your policy can allow you, the policy owner to expand your cash values among the policy, which are able to be distributed or borrowed at some point in the future.


There are three standard types of permanent life insurance. This includes whole life, variable life, and universal life insurance policies. The two more common policies are universal life, and whole life. With a whole life insurance policy, you will have lifetime protection, and you will only pay a predefined premium. With a cash value you usually get a minimum ensured rate of interest, and a death benefit with a fixed amount. With whole life insurance, it is generally the most costly life insurance policy available.

Universal life insurance divides the death benefit portion and the investment portion of the policy. Usually you can adjust your death benefits and premiums to comply with your budget. The investment options available most likely have some form of equity investment, which could make your cash value cumulate faster.


With a permanent life insurance policy, you usually enjoy a beneficial tax treatment. The cash value usually increases on an income-tax delayed basis. This means that you will not have to pay taxes on any earnings from the policy as long as the policy is in effect. Loans or withdrawals not from the cash value are, in most cases, tax free. Get your free insurance quote to start saving cash today.


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