A permanent life insurance policy will remain in force until it matures. At maturity the policy is guaranteed to pay out. There are three main types of permanent life insurance; whole life; universal life; and variable life. They all provide full life cover to protect against the risk of death of the insured. They are designed to be a long term product and also act as an investment. Some policies have the added benefit of profits in the form of interest payments or dividends (this is called ‘with profits’). A permanent life policy is an assurance policy. That is, the policy provides protection against an event that is sure to happen. The policy holder or their beneficiaries will definitely receive a payout. This is a why premiums are much higher than for a term insurance.
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Comments (0) Posted on Saturday, February 9th, 2008