Permanent Life Insurance

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Permanent Life Insurance Permanent life insurance is a type of life insurance that provides lifelong coverage and the opportunity to build cash value. The cash value accumulates on a tax-deferred basis, which means you don't have to pay taxes on the interest or dividends that it earns. You can access the cash value while you're still alive by taking a loan against it or by withdrawing it. The two primary types of permanent life insurance are whole life and universal life; Whole life insurance: Whole life insurance is the most basic type of permanent life insurance. It provides guaranteed lifelong coverage and a guaranteed cash value. However, the premiums for whole life insurance are typically higher than for other types of life insurance. Universal life insurance: Universal life insurance is a more flexible type of permanent life insurance. The premiums and death benefit can be adjusted up or down, and the cash value can be accessed more easily than in a whole life policy. However, universal life insurance policies typically have higher fees than whole life policies. Cash value is builds up in your permanent life insurance policy when your premiums are split up into three pools: one portion for the death benefit, one portion for the insurer's costs and profits, and one for the cash value. Permanent life insurance can be a good option for people who want lifelong coverage and the opportunity to build tax-deferred savings. However, it's important to understand the costs and risks associated with permanent life insurance before you buy a policy. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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