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Important Information about Permanent Life Insurance

The only constant in life is change. Hence, to make sure that you are ready for the uncertainties of life, it is important to plan your finances well. Through sound financial planning, you can secure your family’s future. Buying life insurance is an important decision that most of us take in order to create financial provisions to safeguard future. However, considering the options available, it becomes difficult to find a suitable insurance policy that can provide maximum benefits. To simplify this process, it is important to analyze the needs of your family before selecting a life insurance policy, as it would help you in making the right decision.

What is Permanent Life Insurance?

Permanent life insurance Indonesia

As the name suggests, permanent life insurance is an insurance policy that promises lifetime coverage to policy owners. A significant feature that makes this policy a favorable choice among investors is that the policyholder has the privilege to take a loan against the cash value of their policy. However, you need to have a considerably good amount of cash value for taking a loan, as borrowing against the policy’s face value is not allowed.

Types of Permanent Life Insurance
There are two types of permanent life insurance. They are -

Whole Life Insurance
Whole life insurance policy caters to the long-term goals of people by offering guaranteed cash value accumulation. Under whole life insurance, the policyholder requires to pay the premiums every year to get coverage for life.

Universal Life Insurance
Universal life insurance is a blend of whole and term life insurance. You can get cash value accumulation, or tie your insurance policy to a fixed rate interest that will adjust annually. It also offers payment flexibility to policy owners.

While planning to buy permanent life insurance in Indonesia, make sure to discuss your requirements with a competent insurance company to find a suitable policy.


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