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What is permanent life insurance?

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2009-03-27 05:17:02
2009-03-27 05:17:02

Permanent life insurance is another name for whole life insurance. It provides permanent, lifelong protection. This distinguishes it from term life insurance. Click here for more about permanent life insurance including its advantages and disadvantages. A permanent life insurance policy remains in effect for the life of the insured, with premium payments being made for the same period.

Permanent insurance consists of a premium and a cash value or savings component. Like term life insurance, it pays off in the event of your death, but unlike a term life policy, it operates differently. The premiums for a permanent policy are nearly five to ten times the amount of the term life rates. A portion of these premiums go into the cash value element of the policy, and over time, these savings can grow. As the name implies, permanent life insurance is permanent - the policy is applicable for your entire life as long as you keep paying the premiums. The most common permanent life insurance policies are whole life and universal life insurance.

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The Standard Life Insurance Company offers both temporary insurance and permanent insurance. Temporary insurance includes a term life policy. Permanent Insurance policies available are whole life, universal life, and endowment life.

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Term life insurance if only for the life of the coverage holder, once deceased the amount is paid to the beneficiary. Permanent life insurance, known as whole life insurance, combines term life insurance with an investment option.

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Technically, there is no insurance policy called as permanent life insurance. However, you can treat whole life insurance policy as permanent since the policy covered the whole life span of the policy holder and benefit is payable to nominee in the event of any eventuality of the policy holder.

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There are two major differences between these two type of insurance plans.Term life insurance plans are made to protect you for a certain duration maximum up to 30 years while permanent life insurance does the same for the lifetime. Also, the premiums for term life insurance are cheaper than the permanent one. Depending on how long you need the protection for, you can choose an insurance plan suits your requirements the most. If you are willing to know more about life insurance, you can visit optinsure.com/life-insurance.aspx for the same.

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Liberty Mutual insurance offers two major types of life insurance to policy holders. Those two types are term life insurance and permanent life insurance.


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