Permanent Life Insurance
They are the insurance chosen by those who want to make an investment or think of the inheritance tax debts that will have to pay their family.
Advantages of Permanent Life Insurance
The biggest advantage is that it has no maturity, the capital is held for life, until the death of the insured. Together with the capital, the beneficiary will receive other capital from the share of the accumulated profits, up to that moment, after deduction of expenses and loans. It allows the insured to use part of the amount guaranteed by a savings system in case of requesting the value of the ransom.
Characteristics of Permanent Life Insurance
Provides financial protection throughout his life, ie is a permanent protection until the age of 100 years and will be paid throughout the life of the insured. It combines protection and accumulation of savings or investment, because insurance companies invest premiums and generate savings. The savings or investments vary depending on each company and the type of policy contracted.
Modality of the Insurance: it is to cover the administrative expenses and commissions, to separate the amount to pay the protection to the beneficiary (indemnification by death) and the rest is accumulated in a reserve fund and generates interest or dividends in a plan of savings agreed with the insurance (rescue value). Usually, the insurer guarantees a minimum interest.
The amount invested is variable, depending on what is left over after deducting administrative expenses and the cost of insurance.
Here it should be understood that in the event of death of the insured there are two types of capital: that of the value of the policy to be paid to the beneficiary of the same; And on the other hand the values accumulated in the savings plan that can be made during the life of the insured, are not payable in case of death to the beneficiary. If, before the death of the insured, the policy is canceled or transferred to another person, the accumulated money may be available. These savings represent a type of investment impossible to obtain with term insurance.
What can be done with the accumulated money?
The accumulated money can be used to:
Apply for a loan using this money as collateral, you can ask for all or part of the accumulated value, you will have to pay interest, but they will always be lower than the ones offered by the market.
Pay Insurance Premiums.
In case of cancellation of policy, withdraw the accumulated money, before paying the penalties, that will be imposed by the insurer for early withdrawals.
Remember that if you borrow the money saved in your policy, they must be returned, but at the time of collecting the policy will deduct the amount borrowed from the insurance value before paying the beneficiary.
