There are several types of permanent insurance:
1. Whole life or ordinary life is the most common type of permanent insurance. The premiums generally remain constant over the life of the policy and must be paid periodically in the amount indicated in the policy.

2. Adjustable life insurance premiums are recalculated at set time periods, typically every five, or even ten, years, to reflect current interest rates. While five years is the most common readjustment period, some policies may be based on three or even ten years.

3. Universal life allows you, after your initial payment, to pay premiums at any time, in virtually any amount, subject to certain minimums and maximums. You also can reduce or increase the death benefit more easily than under a traditional whole life policy. (To increase your death benefit, the insurance company usually requires you to furnish satisfactory evidence of your continued good health.)

Advantages:
  • As long as the premiums are paid, protection is guaranteed for life.
  • Premium costs can be fixed or flexible to meet personal financial needs.
  • The policy accumulates a cash value against which you can borrow. (Loans must be paid back with interest or your beneficiaries will receive a reduced death benefit.) You can borrow against the policy’s cash value to pay premiums or use the cash value to provide paid-up insurance.
  • The policy’s cash value can be surrendered, in total or in part, for cash or converted into an annuity. (An annuity is an insurance product that provides an income for a person’s lifetime or a specific period.)
  • A provision or rider can be added to a policy that gives you the option to purchase additional insurance without taking a medical exam or having to furnish evidence of insurability.

Disadvantages:

  • Required premium levels may make it hard to buy enough protection.
  • It may be more costly than term insurance if you don’t keep it long enough. The first step in obtaining Life insurance is that to contact a agent. The agent should be able to provide information and advice on coverage options and cost-saving measures. Agents should be familiar with insurance companies in your city or state. You have to check whether the agent is a full-time and experienced agent or one who sells insurance as a sideline, and look for an agent with specialized training in life insurance. Confirm the agent has any professional designations. Also feel free to ask your doubts and get clarified with it.

Few tips to keep in your mind about your insurance purchase:

  • Take your time. On the other hand, don’t put off an important decision that would provide protection for your family. Make sure you fully understand any policy you are considering and that you are comfortable with the company, agent, and product.
  • When you purchase a policy, make your check payable to the insurance company, not to the agent. Be sure to get a receipt. After you have purchased an insurance policy, keep in mind that you may have a free-look period, usually 10 days after you receive the policy, during which you can change your mind. During that period, read your policy carefully. If you decide not to keep it, the company will cancel the policy and give you an appropriate refund.
  • Review the copy of your application contained in your policy. Promptly notify your agent or company of any errors or missing information.
  • If an agent or company contacts you and wants you to cancel your current policy to buy a new  one, contact your original agent or company before making a decision. Surrendering your policy to buy another could be very costly.
  • If you have a complaint about your insurance agent or company, contact the customer service division of your insurance company. If you are still dissatisfied, contact your state's or province's insurance department. Most departments have a consumer affairs division that can offer help, and some have a toll-free number to respond to consumer requests.
  • Review your policy periodically or when your situation changes to be sure your coverage is adequate.
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