What is Permanent Life Insurance?
The main features of permanent life insurance include:
- It provides risk protection for you and your family for your entire life, providing you keep up the premium payments. Therefore, unlike term life insurance, the insurance company will eventually need to make a payment in one form or another.
- It builds equity in the form of a cash value, which the policy owner is able to access during their lifetime to spend on whatever they choose. For example, if you’ve paid premiums for a number of years and your children no longer rely on you financially, you might choose to withdraw a portion of your cash value to spend or invest elsewhere, while leaving an appropriate balance as your death benefit.
- It’s more flexible than term life insurance and the policy owner may be able to choose and adjust their payment terms, sum insured and investment allocation.
Permanent life insurance was often used in combination with term life insurance. For example, policy owners might supplement their permanent life insurance with a certain amount of the cheaper term life insurance during their child raising years, particularly if they had a significant mortgage.
How can I get permanent life insurance?
Nowadays, Australians have access to excellent, cost effective term life insurance that can meet all their risk protection needs throughout their life. This can be complemented with a wide range of savings and investment plans for their future financial security.
You can find out more about Suncorp’s term life insurance options by calling us on 1800 177 549.