Introduction To Limited Pay Life Insurance – What You Need To Know About It
One thing about Limited Pay Life Insurance that you have to be aware of is the fact that they are for individuals who own a Whole Life Insurance policy, but still chooses to pay for the total cost of their premiums for a limited number of years. Having a Limited Pay Life Insurance may require you to pay your premiums in the first ten, fifteen or even twenty years of ownership, but the benefits are lifelong.
It has been said that Permanent Life Insurance will require premium payment for a person’s entire life, however, the growth of the policy can eventually offset the due of the premium, and if he choose to go for the Limited Pay Life Insurance option, it will be determined at the initial purchase of the policy. In fact, if you choose to get a Limited Pay Life Insurance, you are preventing the growth of your policy to shoulder the payment for your premiums. This means that they choose to shoulder the cost of the policy in its entirety over time. This kind of payment option is said to be beneficial for those who purchased permanent life insurance later in life and want to stop funding the policy, but still want to receive the cash value. Take note that if you are going to pay for your premiums in a limited time frame like ten years, fifteen years or even twenty years, you can do it monthly, quarterly, semi-annually, or even annually.
Another thing about Limited Pay Life Insurance that we want you to know of is the fact that when a person chooses it, it is because they have purchased a whole life policy later in life. What we are trying to say here is that Limited Pay Life Insurance is the an excellent option to preventing having a person pay a premium during retirement, plus, he is bound to receive an income during retirement through dividend payment or the policy’s cash value. On the other hand, if you are purchasing an insurance policy at a young age, there is no need for you to get limited pay life insurance. The reason for this is due to the fact that a younger person has all the time on their side to assist in compounding the interest which he earned from the cash value. If there is no limitation to what you can pay regarding your insurance policy, it will continue to grow.
For those who are considering the idea of getting a Limited Pay Life Insurance, make sure that you really need it so that you will not waste your money on something unnecessary.