The purchase of life insurance is one of the smartest decisions that anyone can make because of its far-reaching nature of the creation of an instant estate for just pennies on the dollar. The Freedom Life Insurance is one of those companies which has the best interest of its clients and customers at heart and they have sophisticated means of helping customers with their life insurance planning.
There are two essential kinds of life insurance that people need to be aware of and how these two formats work. Term life insurance is really temporary coverage, thus its cost is the least expensive. It is sold and placed in force for a limited term of time, although that limited time can run as long as 30 years. Once the term is up, the policy ceases to exist.
Permanent life insurance lasts for the whole of a person’s lifetime, and that is why it is also called whole life. Whole life or permanent life insurance is fixed in place with the same premium and death benefit for as long as the insured individual lives. If the insured person reaches age 100 then the policy matures and the face amount of the policy is paid to the policyholder. If the insured dies any time before that, the beneficiary is paid the death benefit.
Permanent life insurance has a cash value, or surrender value. The cash value can be borrowed against anytime during the life of the policy up to the amount of the existing cash value. If the insured dies and there is a loan on the cash value, the death benefit will still be paid, but for the face amount less the borrowed amount.
Term life allows for the purchase of a lot of coverage for a small price and permanent coverage will be for longer range goals such as retirement and final expenses. Most life insurance planners utilize both kinds of insurance in their plans because mixing the two together maximizes the potential in both. Freedom Life Insurance agrees with this philosophy.
The Freedom Life Insurance Company has expertly trained agents who can help customers with their life insurance planning. It is wise to set a plan down on paper and then purchase a plan that fits the budget and will last.