No one wants to think about death, what it is , what it will bring, and how it will change lives. Life insurance can bring a peace of mind to the questions about what will happen when your gone. How will my family survive? How will the children go to college? Can we keep the house? How much insurance is enough? What kind is best?
Let K&L Insurance walk you through the maze of choices. Not all insurance is correct for everyone. That is why when you fill out a inquiry below, you will receive a life insurance quotation for Michiana insurance and a professional Life Insurance expert will call you and discuss your personal needs. There is no high pressure, our objective is to guide you to the best policy and coverage for the money.
Please feel free to inquire below. 1-866-573-9670
Life Insurance Quotation
Name :
Address :
State :
Zip :
E-mail :
Phone :
Cell :
Date of Birth :
Insurance Request :
Term Perminate
Best time to call :
AM or PM
Comment :
A representative from K&L will be contacting you shortly. Thank you.
What is Permanent Life Insurance?
Permanent life insurance is meant to provide lifelong protection. Generally, a permanent life insurance policy includes a wealth accumulation component, which is tax deferred. Permanent life insurance policies thus work as an investment vehicle in addition to providing insurance against untimely death of the insured person. The most basic form of permanent life insurance carries a fixed premium, that has to be paid by the policy owner, and in turn, the beneficiaries are entitled to a fixed amount of 'death benefit'. The insured person has the right to borrow against the built up cash value of the policy, in case of contingencies. In fact, withdrawals up to the amount of premium are not taxed. Hence, the policy functions as an asset to the insured person, and provides coverage to the beneficiary. Of course, the insured person can avail a loan against the amount of cash value only after a period of time. In case the amount of loan and the interest on the loan exceed the cash value of the policy, the policy gets terminated. Otherwise, the beneficiary can claim the face value of the policy as 'death benefit'. In case the insured person outlives the term of the policy, he can claim the face value of the policy from the insurance company.
Term Life Vs Permanent Life Insurance Policies
Premium: The amount of premium in case of a TERM LIFE POLICY is lower than the premium charged on a permanent life insurance policy. Since permanent life insurance is more expensive than a term life insurance policy, the latter is a LIFE INSURANCE option for people with limited income.
Savings Component: A permanent life insurance policy generally has a savings component, unlike a term life insurance policy. The latter only provides a predetermined amount of money, stated in the insurance contract as 'death benefit.' However, some people might view the wealth accumulation component as forced savings, that require them to pay higher premiums, fees and commission. Moreover, the presence of better investment opportunities may result in a permanent life insurance policy under performing as an investment.
Asset for Whom?: Permanent life insurance policies can function as an asset since the insured person (policy owner) can use the cash value of the policy and obtain a loan, provided the amount of loan and the interest payment is less than the cash value of the policy. Moreover, if the insured person (policy owner) outlives the term of the policy, he can claim the face value of the policy from the insurance company. However, a term life insurance policy does not allow the insured person to claim the amount of the policy if he outlives the stated term. Moreover, his beneficiaries are allowed to claim the 'death benefit' only if he dies within the stated term of the policy. Hence, it is evident that permanent life insurance can function as an asset for both, the insured and the beneficiary, while a term life insurance can at best be an asset for the beneficiary.
Age and Health Factor: Term life insurance policies are suitable for people who have good health and are less than 65 years of age. Many companies would be unwilling to insure people who are over the age of 65. INSURANCE COMPANIES may feel that after the age of 65 a 'death benefit' is imminent. Hence, a permanent life insurance policy with higher premiums may be a better product to market.
Types of Permanent Life Insurance:
The most popular types of permanent life insurance policies are as follows:
Whole Life Insurance: A WHOLE LIFE INSURANCE policy is meant to provide insurance for the entire life time of a person. The policy has a saving and an insurance component. A part of the premium paid accumulates over time and earns interest, while the remaining premium is the amount charged for coverage. This, in turn, may result in reducing the amount of premium that has to be paid by a person during his lifetime.
Universal Life Insurance: In this case, the insurance company allows a person the flexibility of shifting the premium between the saving and the insurance component. In case the savings component earns less, he can use it to pay the premium for insurance. Hence the cash value of the investment grows at a variable rate.
No matter which option is best for you, we can provide you with a life insurance quotation.
K & L Insurance Projects -
Life Insurance Quotation
Copyright © 2009 K&L Insurance Projects: Michigan Homeowners Insurance. All Rights Reserved.
