The Pros and Cons of Permanent Life Insruance
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If you are thinking of purchasing permanent life insurance, this presentation by Robert Taurosa addresses some of the pros and cons.
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The Pros and Cons of Permanent Life Insruance
- 1. ROBERT TAUROSA PERMANENT LIFE INSURANCE THE PROS AND CONS OF
- 2. PROVIDES PROTECTION PERMANENT LIFE INSURANCE throughout a person’s lifetime, provided that premiums are paid. It also builds cash value, which can be borrowed against or used to make premium payments.
- 3. POSITIVES STABILITY IN RETIREMENT people’s expenses are tending to remain higher than in previous generations, creating more need for survivors’ protection. Permanent life insurance plays a more important role in financial planning with life expectancies in America rising. It remains enforced regardless of changes in a person’s health status.
- 4. POSITIVES TAX SAVINGS APPRECIATION AND As premiums are paid, cash value accrues, which increases the death benefit and provides a savings nest egg. The cash value can be accessed at any time and used for any purpose. Some policies pay dividends, which add to the cash value. The policyholder can also use the dividends for premium payments.
- 5. BERKSHIRE UNIVERSITY | COLLEGE OF ARCHITECTURE POSITIVES TAX-FREE BENEFITS On average, income taxes take 1/3 of Americans’ earnings. Life insurance proceeds from the death benefit or policy loans come unencumbered by a bill from Uncle Sam. Few other investments offer that level of savings and must work harder to make up for the tax bite.
- 6. NEGATIVES PREMIUMS HIGHER PREMIUMS FOR UNIVERSAL LIFE AVERAGE 6 TIMES MORE, AND WHOLE LIFE AVERAGES 10 TIMES MORE. UNIVERSAL LIFE PROVIDES FLEXIBLE PREMIUMS, WHILE WHOLE LIFE PROVIDES LEVEL PREMIUMS. Compared to term life Many households find themselves unable to afford the amount of permanent insurance they need, especially if they have young children. To remedy this, they can consult with their insurance agents about permanent life insurance with a term rider. This provides additional term insurance for a certain number of years. Another option is a term policy that offers the right to convert part of the policy to whole life.
- 7. PERMANENT LIFE INSURANCE provides essential coverage for any household. Financial planners always recommend permanent coverage. If more coverage is needed for a time, term life insurance can fill the gap.