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Promoting life insurance as an investment is actually referring more to a category of life insurance called permanent life insurance. Basically, there are two main categories, the term life insurance and the permanent life insurance. Term life insurance has a limited coverage period and the period is up to the policy owner to decide on whether to renew or let the insurance coverage end, while for permanent life insurance, this type does not expire and includes a death benefit with a savings measure. The savings measure can grow into a cash value to which the policy owner can borrow from it or withdraw the cash value to be used for future use. Due to this form of insurance package, permanent life insurance is more expensive than the term life insurance, as the policy owner has to pay for management fees and agent commissions.


In order for the policy owner of a permanent life insurance to borrow the savings measure, there is a condition stipulated in its policy that a waiting period is required after the policy has been purchased, which the policy owner cannot borrow until a sufficient cash value is accumulated. Another stipulation is that the policy and all its coverage will be terminated, if the amount of unpaid interest of the borrowed cash measure plus the outstanding loan balance will reach a total amount that exceeds the amount of the cash value of the policy. Learn more at


Another benefit of permanent life insurance is it enjoys favorable tax treatment because the growth of its cash value is put under a tax-deferred basis, which means that you pay no taxes on any earnings in the policy for as long as the policy remains active. An example of which is, money that is taken out as loans are not considered taxable income including withdrawals up to the amount of the premium paid.


There is a flexible type of permanent life insurance which offers low cost protection as well as a savings element, which can be allocated to provide a cash value buildup. This policy is known as the universal life insurance. With this type, the policy owner can use the interest from his accumulated savings to help pay for premiums over time. This policy is flexible in the sense that premiums may be shifted over time depending on the policy owner's needs, for as long as the cost of the insurance is covered, and if the savings element is earning a low return, the amount can be used to pay the premiums. More info can be found online so be sure to check it out!


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