Some of the Positive and Negative Points of Life Insurance

Published: 28th June 2009
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A whole life insurance policy is an insurance that gives a financial security to your family after your death. It is a permanent cover till you are alive. Its premium generally remains constant over the whole period of the term. Along with security it accumulates your money and gives you returns after the maturity. You can also use this accumulated money to pay off your premium of the end terms before maturity.

Everything has its pros and cons so as permanent life insurance. When going to purchase a permanent life policy, you can take into account the following factors:

1. Positive Points can be described as:

? A permanent life insurance accumulates your money which acts as an investment. Maybe it won't give you as much returns as in the case of mutual funds and shares but it does give you a security of your investment money.

? As it is permanent. You can be tension free for life.

? As mentioned earlier premium of life insurance is fixed and constant saving you from worry of rising inflation.

? It can be used as collateral in case of bank loans.

? In many cases permanent life policy doesn't lapse if premiums are not paid after first six months. It will be paid cut from the sum accumulated. But, because of lapse in premium payment there are some alterations in the benefits you get after death.

2. Negative points can be described as:

? Comparing permanent life insurance with term life insurance, premiums of permanent as large as 10 times. So you can go for term insurance if you have low budget.

? You can get more interest and returns if you invest your money in some other options available rather than going for permanent life insurance in which returns are very low. It depends on insurance company that how much returns it can offer you.

? With permanent life insurance you get only death benefit and no other benefits.

? As compared to banks, getting your own money in permanent life insurance is quite complicated.

? You have to pay premiums on time for your whole life.

So in this way there are some advantages and disadvantages of the permanent life insurance. It surely gives you real benefits if you can afford it. Besides an investment and tax benefits it gives a financial security for your loved ones and family.

Insurance quotes providers can give you the best quotes and from reliable companies according to your circumstances.

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