Life insurance: Term or permanent? Life insurance is an important financial tool that provides security and protection to individuals and their loved ones. Many associate life insurance with financial protection in the event of death, but it can also help ensure financial stability in the event of a serious illness or disability.
There are two main types of life insurance: permanent life insurance and term life insurance. With permanent life insurance, the policyholder has lifelong coverage and builds up cash value. This means that as they pay premiums, a portion of them is allocated to a cash savings account that can be used in the future in the form of loans or cash withdrawals. Permanent life insurance is more expensive than term life insurance, but it has long-term financial benefits. The beneficiary can use a portion of the accumulated funds in the event of a serious, critical, or terminal illness or if they are experiencing financial hardship.
On the other hand, term life insurance is coverage for a specific period of time, such as 10, 20, or 30 years. If the policyholder dies during the coverage period, the beneficiaries receive the amount contracted in the policy. Term life insurance is more affordable than permanent life insurance, but it does not have a cash value accumulation. This insurance is preferred by young parents with school-aged children who seek to ensure that if they die, their children can continue to have a home and pursue their studies.
Both types of insurance are important and can provide financial protection to beneficiaries. However, the choice of insurance type depends on the specific financial needs and objectives of the policyholder. Before purchasing a life insurance policy, it is crucial to speak with a Univista Insurance agent to determine the best option for you and your family. Life insurance: Term or permanent?
Life insurance: Term or permanent?
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