There are many types of life insurance out there. Limited pay life insurance is one of the options that could potentially meet your needs.
What is a Limited Pay Life Insurance policy?
Majority of the time limited pay policies are another way of getting whole life insurance. The policy describes itself in its name. You will only pay on your life policy for a limited amount of time until that policy is paid up.You can choose the amount of time it takes to pay for your policy. For example, someone can choose to pay their policy over 10, 15, or 20 years and have that policy in force for the rest of their life. Since this is a type of while life policy that means you have the ability to accumulate dividends that will either add to the cash value or add to the death benefit even after you are done paying.
Why should I get this type of policy?
It is all personal preference. These policies are best for people who want to get the premium payments out of the way. The premiums will be a little higher than normal but you will only pay for a short amount of time. Using this type of policy for children is the best way to get a policy that will last a lifetime but the payments won’t.
What is the benefit to a limited pay policy?
The biggest thing is that you will not have to pay the premium the rest of your life. The premium payments will stop after a certain amount of time but the benefit of the life insurance will continue. The other benefit to this type of policy is that it has a cash value. You can use the cash value of a policy to take loans from or surrender the policy to obtain the whole cash value. This cash value will also gain interest throughout the life of the policy.