Please note that any outstanding policy loan will reduce the death benefits. Any withdrawals, such as partial surrenders, may be subject to surrender charges.
What are the Various Types of Permanent Life Insurance?
Whole Life Insurance is probably the most common type of permanent life insurance. It has become popular as a form of retirement investment because it builds cash value over time. Whole life insurance can be more costly than other forms of life insurance, but it can also provide many more additional benefits. Some insurance companies may even offer what is called a dividend option, where any excess premiums you've paid get returned.
Universal life insurance is oftentimes referred to as adjustable insurance and is comparable to whole life. These life insurance policies have a savings vehicle similar to that of whole life, but it allows you to borrow against its cash value. This flexibility can allow you to take a loan out against your policy or even pay smaller premiums if your cash value can cover the costs.
Remember, if you take out a loan and fail to pay it back, you risk losing your insurance policy completely.
In addition to having a death benefit, a variable life insurance policy's investment options are different and are typically managed professionally. Whatever cash value you have accrued can be used to invest in stocks, bonds, and mutual funds to earn a greater return. Of course, you always run the risk of losing money through these investments. Also, just like with universal life insurance, you can borrow against or withdraw from variable life policies.
Variable Universal Life
Variable universal life insurance policies combine several of the aspects involved with variable and universal policies. You have the different investment options for your money of variable life insurance as well as the risk that comes with them. Also, similar to universal life insurance, you can also adjust your premiums if your cash value can cover the difference.
What type of permanant life insurance policy is best for me?
There are many options within permanent life insurance. Depending on your current situation and long-term goals, the best plan for you may change. It is best to speak with a qualified insurance agent to assess the best plan for your unique situation. Call us today at (281) 398-1010 to discuss your life insurance goals and find a matching policy.