With there being so many options of Life Insurance out there, it can be a rather bothersome task to find out what each and every one is all about and what perks and drawbacks are tied with them. In this article my aim is to bring to light the most important advantage and disadvantages that are found in the different types of insurance, firstly I want to start with the Permanent Life Insurance. Which is further broken down in to two options, which is the Universal Life Insurance and the Whole Life Insurance. Both offer you permanent cover.

Some of the perks of a whole life insurance cover is that the premium is guaranteed to be the same till the day you die, the lump sum or cash value which has been accumulated over a period of time can be withdrawn or used as collateral. Some of the disadvantages are that this option is generally the most expensive one out there on the market. The cash payout is one specific set figure and can not increase over the years. A whole life insurance policy would be suitable if you have a substantial  and secured monthly salary and find yourself with little or no time on your hands to manage the investment.

The next option is the Universal Life Insurance policy, with this policy the advantages is that it will provide you and or your family with permanent protection and requires no renewal or change in the policy, premium or benefits. Universal life insurance covers come with a flexible payment option as well. The drawback of universal life is that the price tag is somewhat high but lower that that of the whole life insurance and in order to purchases this option it is advised that you have a fairly good knowledge of what you getting yourself in to. This policy is suitable for those who have businesses as it may be used as funding as well, business partners can use their universal life insurance as funding for their partnership agreement.

And finally we come to the cheapest option, Term Life Insurance. It goes without saying that this option is by far the most cost efficient of the lot. But it has its cons as well, that would be the fact that term life covers do not have a cash value and that you can only claim from the policy upon death within the term, you also will be exposed to a drastic hike in premiums should you wish to renew your term period.

I do hope that this will at least now make it simpler to understand and make the correct descidsions when purchasing a comprehensive life insurance plan.

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