Knowing Single-Premium Life Insurance Policies

The Life Insurance main purpose is to give benefit to the survivors or to leave some financial assistance for charitable cause. If explained in simple terms, a single life insurance policy is a type of insurance in which a total sum of money is paid into the policy when the policy holder passes away that is guaranteed until you die. There are multiple versions of single life insurance policies giving various options of investments and withdrawal provisions.

The single-premium life insurance policy allows quick building as the policy is fully funded. The death benefits will depend on the size of investment, age, health and how long did the insured person survived.

If we look through insurance company’s point of view, the younger person is calculated to have a longer life expectancy, giving the funds paid in the premium more time to grow before the death benefit is expected to paid out. And, naturally the amount invested will bring benefits according to its size. You can find single life insurance cover and joint life insurance cover with single-premium option.

Benefits of Utilizing Single-Premium Life Insurance:

Along with the death benefits, the insurance polices should also have some clauses considering the unexpected needs and requirements which might rise before you die. You must look into the important of long-term care insurance, as long-term care can usually turn out to be an expensive predicament. But if you are unable to pay the premiums of long-term care insurance? Single Premium life Insurance can be the solution.

Some of the Single-premium policies provide you tax-free access to the death benefit to pay or long-term care expenses. This feature might seem costly at once but, gives long -term security without any continuous tension. The single-premium permits you to cover your long-term care requirements as needed, but still leaves the maximum possible amount of your death benefit accumulated for your dependents. The single-premium policy also allows you to withdraw some amount of money if the insured person has been diagnosed with any terminal illness and is need of money. This flexibility and other features provide multiple benefits to the ones opting for single-premium insurance.

Available Investment Options with Single Premium Policies:

There are two most popular single-premium polices which offer different investment choices: Single-premium whole life and single-premium variable life. The single-premium whole life will pay a fixed interest rate based on the insurance company’s investment experience and present economic conditions. Single-premium variable life permits the policy owners to select from a menu of professionally handled stock, bond and money market sub-accounts along with fixed account.

If you have cash in hand and don’t require it at urgent basis then it is best to invest in life insurance for your dependents, family, favorite charity, or single-premium life insurance best for you. It is also the best way to begin the child’s life insurance program.

To read more on topics like this, check out the lifestyle category.