WHAT IS TERM INSURANCE AND PERMANENT INSURANCE
TERM INSURANCE
Term insurance lasts for a specified period of your time say five years or ten twenty or even thirty years if your only need is for funds to pay off a 20-year mortgage at your death, A twenty-year term policy would probably be the solution for you.
Or if you're concerned about
providing funds to take care of your aging parents in their later years, a five
or ten-year term policy might do the job the smaller the period of time the plan lasts the minor the premium.
But once the term period is over
you'll have to pay a considerably higher price to uphold it if you need to do
so and you may find have to take another insurance physical to qualify all over
again that means your health must still be good and that you haven't taken
piloting skydiving or vehicle
racing declining health or a
dangerous job or hobby can significantly increase the value of insurance.
PERMANENT INSURANCE
Permanent insurance offers lifetime protection -- as long as premiums are paid, coverage lasts as long as you living. If you expire, the death advantage from a life insurance policy may support replace your revenue.
In this way, life insurance can help
as economic protection for your family. There's a client who I've been working
with for 19 years now. When she first came to me, she was unmarried and
renting.
Over time, she bought her own home,
got married, and had children, so her insurance needs kept developing. Over the
years we assisted her to arrange life insurance for her and her husband.
She started out by a term policy,
which she later changed to a permanent policy. Her husband bought his own
permanent life insurance. Neither likely to have to trust their life insurance,
mostly while they were raising their family.
But then, her husband deads very
abruptly. He was just 48 years old. Even during such a hard time, the wife had
to deal with immediate concerns, such as the funeral and its expenses.
But she also had to consider
long-term about supporting their two kids and giving the mortgage on her
revenue by herself. The profits from her husband's life insurance policy
assisted. Having those assets meant she didn't consume to make any swift
financial decisions.
She didn't have to sell out
properties or go back to work earlier she was prepared. She could spend some
time with her kids, and take some time to grieve. In a truly problematic
period, having that financial security really helped her and her kids.
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