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PermaPlan |
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Whole Life insurance should be purchased to answer a lifetime of life insurance
needs. Whether you need it to replace your income, pay for college expenses, or
use it for estate planning, whole life insurance should almost always be part
of your insurance planning.
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Additional Information |
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What is the difference between Whole Life and term insurance?
Whole Life insurance is just that - permanent. In the analogy of buying a house
or renting an apartment, Whole life insurance is like buying a house. That is
why it is more expensive than term insurance. You own it until you die or it
matures. If you want insurance to pay a death benefit to your family or loved
ones, then permanent insurance is the safest way of doing it. Mortality tables
suggest that most people will live well into their 70's and many to age 80 and
beyond. Whole life Insurance takes the guesswork out of the equation.
Term insurance is commonly referred to as temporary coverage. For example, a
newly married couple may want to buy life insurance to protect their mortgage
on their house. Another may want it to assist a spouse and children in the
event of an untimely death. Term insurance is usually less expensive than
permanent insurance because insurance companies charge premiums based upon the
likelihood of your dying. If you are 30 and you buy a 20-year term plan, the
likelihood of your dying between the ages of 30 and 50 is relatively small. If
your term plan runs out, you must re-qualify for coverage based upon your
current age and health conditions. Whole life insurance should be purchased
when you feel that you have a lifetime of life insurance needs. Whether you
need it to replace your income, pay for college expenses or use it for estate
planning, Whole life insurance should almost always be part of everyone's
insurance planning.
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