Permanent Insurance: Concept and Compare Types
Permanent Insurance policies are the set of policies which provide the coverage
of whole life of an insurer as long as the premium are paid and they don’t need
to be renewed. Most permanent life insurance policies also have a cash value
component, which is similar to an investment account. You can withdraw or
borrow from your policy’s cash value once it’s large enough.
An essential feature of most permanent life policies is a savings portion known
as cash value accumulates over time as you make regular payments toward
your policy (these payments are known as premiums). You can typically borrow
against your policy's cash value.
Types of permanent Insurance:
permanent life insurance is designed to be kept for the remainder of your life,
there are several differences among the types of policies:
Whole Life Insurance policies: Whole life insurance provides coverage for life at
a fixed premium, meaning your insurance payments never change. When you or
the policy holder dies, the policy’s beneficiaries receive a tax-free death
benefit—a lump sum payment the death benefit.
Universal Life Insurance: Universal life insurance is also called adjustable life
insurance because of the flexibility it offers. You have the liberty to reduce or
increase your death benefit and pay your premiums at any time in any amount
(subject to certain limits) once there is money in the account. You can adjust
the death benefit when needed or lowering it to reduce premiums.
T-100(Term -100): 100 life insurance (also known as Term 100, or T100
insurance) is a type of permanent insurance policy. The coverage lasts for the
entirety of the insured person’s life and level premiums are paid until they turn
100 years old. While the coverage is permanent there is no cash value to term
to 100 life insurance policies. While premiums are no longer due at age 100, the
coverage continues for the rest of the insured’s life.
T-100 Life Insurance
100 life insurance (also known as
Term 100, or T100 insurance) is a
type of permanent insurance
policy. The coverage lasts for the
entirety of the insured person’s
life and level premiums are paid
until they turn 100 years old.
Term 100 minimize the impact of
taxes on other taxable assets in
your estate – such as the capital
gains tax on the increase in value
of your cottage and fulfil the
need a source of funds to help
your heirs:
T100 premiums are cheaper than
whole life plans and don’t
fluctuate through the course of
the plan, which means you can
rest easy knowing the premiums
you pay today will remain the
same throughout the duration of
your policy.
Your premiums are fixed and
remain level. No further
premium required after age 100
Whole Life Insurance
Meaning
Whole life is an insurance that
provides the insurance of
whole life, means the insured
person is covered for the
duration of their life as long as
premiums are paid on time
Product Type
Whole life insurance combines
both an insurance and a saving
component. While insurance
protection offers a death
benefit once the policyholder
dies, the savings component
accumulates value that can be
used for different purposes.
Coverage
Insurance rates stay the same
over the course of your life and
they are significantly higher
than the premiums one would
pay for a comparable term
insurance policy with the same
coverage.
Premium
This policy is best to use when
you have enough money to
pay significantly higher
premiums, in the beginning
and you do not want to deal
with investment choices,
letting an insurer to invest for
you
Universal Life Insurance
Universal life insurance is also
called adjustable life insurance
because of the flexibility it offers.
You have the liberty to reduce or
increase your death benefit and
pay your premiums at any time in
any amount (subject to certain
limits) once there is money in the
account. You can adjust the death
benefit when needed or lowering
it to reduce premiums.
Universal life insurance unbundles
the life insurance risk charge and
the savings component. You can
adjust your premium to pay for
just the cost of insurance and
policy fee or put in any extra
money and accumulate cash
value. There are a wide range of
investment options from low risk
to higher risk.
You can, actually, vary how much
you pay in premiums for your
universal life insurance policy. It
would impact your coverage and
speed of accumulation.
This policy is a good choice for
people who value flexibility and
flexible premiums.
Fulfil the need of Life coverage,
Can provide High coverage
options.
Requirement Type
Maximize the Value of your
assets. Effective way to replace
the loss of income in case of
death of policyholder.
Minimize the Impact of taxes on
your estate value, and maximize
the wealth value.