People are quite confused as which policy to purchase, term or permanent life insurance. These policies differ from each other in many ways. However, both term and permanent life insurance play an important role in the lives of the people while considering financial planning processes. If you are also confused over purchasing a suitable insurance policy, you can consult with your financial agent or a professional from a good insurance company. In this article, we will discuss about the different views and opinions of the financial advisors and planners on these insurance policies.
Term insurance has been quite common in the United States of America from quite some time. You might have seen various types of advertisements about life insurance policies. You must also have been attracted by advertisements like $500,000 insurance at $10 per month. Well, if you are looking for benefits from the insurance policy, you must consider purchasing term insurance. This insurance is issued for a certain period of time ranging from 1 year to 30 years. Some people are not aware of the type of policy they have purchased and cannot answer properly, when asked.
Term insurance policy can be extended or adjusted with the pass of time. Upon the agreed term or period of the policy, the insurance company reserves the full rights to increase the rate of premium of the policy.
Permanent life insurance is nothing but whole life insurance. Here, you need to pay the premiums whole of your life and there is no maturity of this policy. If you are looking for better or more benefits from the policy, then you are advised to buy permanent insurance policy. When you die, the heir or the beneficiary will receive the money or compensation from the insurance company. This policy gives coverage for whole of your life. This policy is also beneficial because the agreed sum of money will be paid without fail by the company.
By making a payment of $50 per month, you can get permanent insurance policy of $500,000. Isn’t this beneficial? Well, this is not your car insurance or any other insurance but it is a protection against the death or injury of your life. However, a fixed sum of money will be agreed as the insurance premium while purchasing the insurance policy. This means that the insurance company does not have the right to increase the rate of premium through your life.
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