Blog

When — and Why — Permanent Life insurance Makes Sense

Expert opinion on life insurance shifts with the times. The basic question: whether to purchase cheaper term life insurance, or buy a more expensive permanent policy. When other investments seem less certain, many experts say permanent life insurance makes more sense.

Permanent policies come in two basic forms, whole life and universal life. Both plans invest your premiums and provide cash equity over time. You can withdraw or borrow from your accumulated equity to help pay for major life expenses.

To achieve maximum investment results:

1. Purchase your permanent policy as early in life as possible. You’ll get the cheapest premiums and the longest time to build equity.

2. Resist the temptation to borrow from your equity until you need a significant amount. Borrowing smaller amounts depletes equity and could mean your policy won’t have enough to cover a down payment on a home or help pay your for a child’s education.

3. Remember that loans and withdrawals will deplete your equity and the death benefit. If your beneficiaries could face serious hardship without you, be especially cautious when borrowing against your policy.

Access First Insurance in Eagle, Idaho can help you explore your life insurance options. To learn more or get a quote, contact us..