Permanent life insurance is just as it sounds; it covers your entire life. If you pay your premiums the policy you have taken out will remain in effect until you die. Such policies are meant to be long term and are a great option for anyone expecting to need coverage for a long period of time or who wants one that lasts longer than the standard 30 year that term policies max out at.

Permanent life insurance has a cash value or cash-surrender value. These values can be used for a variety of things, such as down payment on a mortgage, education costs or retirement funds. If you borrow against the cash value of the policy it is not payable until your death, at which time it is due. You can also use the cash value to keep paying the policy if you have to stop paying for any reason. If you stop paying completely your guaranteed amount will be paid out to you.

There are three different types of permanent life insurance, each with its own differences.

Whole Life Insurance

Whole life insurance is also called ordinary life insurance. It is the most common one of the category. There is a guaranteed return on investment and a guaranteed death benefit. Premiums are constant throughout the life of the insurance policy. You may even receive dividends on this type of policy. They can be rolled back into the policy to help pay for it or increase the death benefits.

Universal Life Insurance

Universal life insurance is also called adjustable life insurance. Policyholders can pay premiums of any amount at any time, within a range. The death benefit can also be reduced or raised with this type of coverage. There is a guaranteed minimum for the death benefit and a guaranteed return on investment.

Variable Life Insurance

Variable life insurance ebbs and flows with the way a portfolio of investments is going, Policyholders have the discretion of selecting the type of investments that they want their money in. They can even opt for fixed accounts. Those who like risk will enjoy this type of life insurance coverage. You can even make money if you are good at it. However, if your investments turn bad, your death benefit and cash value will diminish.

Variable Universal Life Insurance

Variable universal life insurance is very much like universal life insurance coverage. The premiums are flexible and policyholders can place their money in different investments. It is a good combination for someone looking to mix life insurance and the potential of high risk investing.

Life Insurance Riders: What Is Included Vs. What Is Available

If you are in the market to add extra coverage to your policy, and it is something that is not automatically included you can do so with a rider. Included in many term life packages are things like accelerated benefits to provide payouts on a percentage of your policy if you are diagnosed with less than a year to live.

Additional riders or options are typical for life insurance policies and can include:

• Accidental Death Benefit Rider: This option is available on many policies and adds an extra death benefit when you are a victim of an accident.
• Child's Term Life Insurance: This is an optional coverage extending a small amount of coverage to the insured's children, which is paid only in the case of death.
• Waiver of Premium Rider: This type of coverage allows you to continue your life insurance plan even if you are disabled and cannot earn wages.

Substandard Ratings

Many people do not qualify for standard rates for a variety of reasons. If this is your case, please call us at 877-812-5111 and we will provide you with the information you need.