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Buying a life insurance plan is a process involving three steps. In the first place, you should be able to identify your goals in buying insurance. You must ascertain whether your objective is to replace the loss of income for your dependents upon your death either for a limited period or for lifetime. Secondly, you need to decide how much insurance you require and the budget you can afford towards premiums. The last thing is to compare between term life insurance and permanent life insurance products.There are five important factors to consider while shopping for permanent life insurance policy. There are several kinds of permanent life insurance plans. For practical purposes, we can mention three of them which are highly popular among subscribers. With each of these types, there are levels of risk and advantages. You must weigh them judiciously to choose the right one for your coverage needs. Whole life insurance comes with a fixed premium. It offers both guaranteed death benefit and a cash benefit. Since there are different payment options, you can choose to stretch your plan to any number of years. The two other kinds of permanent life insurance are universal life insurance and variable universal life insurance. While universal life insurance plan offers a flexible premium plan something like combining a term insurance plan with a bank account. While you are free to pay as much as you can and wish. The left over after paying for the premiums will fetch you some good interest. The variable universal insurance works in the same fashion, but over and above it gives you the option to choose between some mutual fund types to earn a variable interest rate. Permanent life insurance plans require the subscribers to take a medical exam. Permanent lie insurance plan is a good option for those who have a medical condition or illness. Depending on the risk class, your premiums tend to be higher. However, the chances to be turned down are very less in case of requesting for a permanent life insurance plan. Much more than being an insurance policy, permanent life insurance plans work like an investment platform. They come with an added advantage of a tax-favored cash growth. There is one more advantage. At crucial times of need, you can take a loan against the cash value of your insurance plan. Again this loan amount is not taxable. While shopping for a life insurance plan, you need to first check the insurance provider’s financial stability. This is all the more important when you buy a permanent insurance plan since the loss in case of the company failing will be too high for you to sustain. Remember you are depending on the company to pass on the policy benefits to your dependents after your death. The cost of permanent life insurance premiums is higher when compared to term life insurance plans. This is why most people prefer buying term insurance policies. However, the wise take into account the added advantages and go for permanent insurance plans if they can afford. The price of permanent insurance plan is fixed considering your health, age, and gender in addition to the amount of the insurance purchased. Therefore, while purchasing a permanent life insurance plan in California, make sure you have considered all the above said factors. The author is a widely expert on US Insurance Industry his writing experience in California Life Insurance and Life Insurance Florida exclusively on . His articles are read with great anticipation and eagerness.
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