Permanent Life Insurance Tips

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How do I avoid becoming “uninsurable”?

Ensuring That You Will Never Be "Uninsurable"

Paying the higher cost of permanent life insurance rates can ensure that you never become “uninsurable”. Unlike with insurance policies that expire, your permanent life insurance rates and benefit should stay in place throughout your life, as long as you keep up your payments, no matter how old you get or if you develop a severe illness. This is your return for all of those years that you have paid your permanent life insurance rate on a timely, monthly basis.

   
What life insurance is best to receive more flexibility?

Changing Needs, Changing Policy

Changing a life insurance policy can cost money, you could lose money, and it can be a complicated process. Fortunately, there are life insurance policies that will change with your changing needs, such as a variable universal life insurance. This is a great option for someone who expects their situation to change over time. For example, a young person can start with a low variable universal life insurance premium & benefit, increases their variable universal life insurance premium & benefit once they have a family, and then decrease their variable universal life insurance premium & benefit again once their children leave the nest.

   
How can I avoid the high cost of life insurance renewals?

Avoiding the High Cost of Life Insurance Renewals

Choosing to pay permanent life insurance rates can help you avoid the high cost of renewals. For example, with policies that expire, you will often have a large jump in your premium each time you need to renew your policy. On the other hand, a permanent life insurance rate will stay the same as long as your policy is in good standing. So, while others your age are learning that they will have to pay a large monthly premium, you will have the same permanent life insurance rate you have always had.

   
Is their a life insurance policy that offers flexible premium payments?

Making Premium Payments When You Want

Life insurance companies will allow you to skip (or make additional) payments on your variable universal life insurance premium when you want. While most companies do have some sort of restrictions on this policy, variable universal life insurance premiums can still offer more flexibility than other types of policies. Variable universal life insurance premiums allow life to happen without stress over your policy.

   
What is an unique advantage offered by permanent life insurance?

Let Your Life Insurance Company Pay

One of the features of permanent life insurance is that its participants may occasionally receive dividend payments. Although you are not guaranteed to receive this benefit, when you do receive it you can apply it towards your monthly permanent life insurance rate. Some have had their permanent life insurance rate paid for months or years by a large dividend payout.

   
What can I do if my permanent life insurance does not provide enough coverage?

Supplementing Your Permanent Life Insurance

Although many who choose to pay permanent life insurance rates have usually taken out a large coverage amount, there may be times when we still find that the amount we have chosen is not enough. When this happens, you can easily supplement your permanent life insurance rates & benefit with a term life policy. This will allow you to have the extra coverage when you need it, without having to pay premiums on that large amount for your entire life.

   
What is a good alternative to term life insurance?

Don't Lose Your Investment Through Term Life Insurance

One of the problems that many people have with term life insurance policies are that, if they don't die, the life insurance company will get to keep the entire amount. However, you do have other options. You can use a variable life insurance policy to invest in so that, not only can you receive a portion of the money that you paid if you do not die before the estimated time but, you may end up with even more death benefit coverage and more potential cash value than you paid in if your stocks, bonds, or money market accounts fair well.

   
Why would someone need to pay the usually higher cost of permanent life insurance rates?

When Permanent Life Insurance Rates are Worth the Cost

Although permanent life insurance rates may be higher than other forms of insurance, there are situations where one may need this option. For example, someone who has a lifelong dependant, who will still need support after the insured dies, would find permanent life insurance rates worth their cost. For most, this is usually a child or sibling who is mentally or physically disabled. These persons would not be able to support themselves, the insured would not want to see them institutionalized or homeless, and the person in need would have no other family to rely on once the insured dies. The cost of a permanent life insurance rate becomes a minimal cost when you are assured that a loved one will be protected after you are gone.

   
Is their any life insurance policy I can count on if I have an unexpected income loss?

Income Loss & Variable Universal Life Insurance

When an unexpected loss of income occurs, bills can become hard to pay and you may need to minimize your overall expenses. Luckily, if you have a variable universal life insurance policy, you can adjust your variable universal life insurance premium without risking your entire policy. You will still receive coverage for that period of time (as long as your account does not fall below a set amount) and can add additional funds once your situation is resolved. Although no one plans for this type of situation, getting a variable universal life insurance policy may be best “just in case” the worst happens to you.

   
Is their a life insurance policy that can help me while I am still living?

Variable Life Insurance Premiums

Although many of us tend to view life insurance only as a way to protect our family in the event of our death, it can also be used to help our family while we are living. By taking out a variable life insurance policy, you can use a portion of your variable life insurance premiums to invest in stocks, bonds, or money market accounts. If these investments go well, you could end up with a substantial death benefit for your family if you die, plus a substantial cash value that you can reclaim or borrow against. This cash value can be used to help fund a child's education, pay part of a large mortgage, or anything else your family needs.

   
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Carma Spence-Pothitt