Permanent Life Insurance

The first decision many people make when buying life insurance is whether to buy term insurance or permanent life insurance. There are two basic types of permanent life insurance: whole life and universal life insurance, and there are several different types of whole and universal life policies, offering different risks and advantages. Understanding the various types of permanent life insurance can help you decide which type of life insurance coverage best meets your needs.

Whole Life Insurance

With whole life insurance, policyholders pay fixed premiums over a preset term of 10, 20 or possibly 30 years. Part of the premium is invested in financial instruments and the policy gains cash value over time. At the end of the term, the policy remains in force without any further premium payments or it can be redeemed for its cash value. The cash value cannot be redeemed until the policy matures and failure to make monthly payments may result in the loss of the cash value already accrued by the policy. Learn more about whole life insurance, its pros and cons and why it is a great type of permanent life insurance.

Universal Life Insurance

Like whole life insurance, universal life accrues a cash value, but instead of a fixed premium, universal life insurance has a minimum payment. The payment amount over the minimum rate is diverted to investments, usually in the stock market. The more you pay, the more cash value accrues, and you may borrow or remove cash value during the policy term. If you are unable to make payments, they will be deducted from your cash value and the policy must be renewed at the end of the term to stay in force. Learn more about universal life insurance, pros and cons, and the flexibility it offers consumers interested in buying permanent life insurance.

Guaranteed Universal Life Insurance

Guaranteed universal life policies have most of the same provisions as standard universal policies but they guarantee a minimum return on your investment. The amount is a percentage that is paid over and above your actual investment. GUL policies have higher minimum premiums than standard universal life policies, and, like other universal life policies, they will deduct premium payments from the cash value in the event premiums are not paid.

Variable Life Insurance

Variable life insurance provides many of the features of whole life, but it allows different investment options that are usually professionally managed. The cash value of variable life policies may be invested in the stock market, mutual funds or bonds. Variable universal life insurance offers the advantages of other universal life policies with the investment options of variable life insurance. Both have a death benefit and a cash value. Learn more about variable life insurance.

Life Insurance Quotes

Rates on various types of permanent life insurance vary and may factor into your final choice. TheLifeInsuranceQuote.com provides multiple free life insurance quotes from the best life insurance companies in the U.S. We allow consumers to shop and compare every type of life insurance available, including universal, whole, variable, and term life insurance to find the best permanent life insurance for their needs.

Simply enter your 5-digit zip code and TheLifeInsuranceQuote.com will return a list of carriers offering free, instant life insurance quotes, where consumers will be able to find the most affordable rates and best coverage.