Thinking about investing in a life insurance policy? Perhaps you aren’t sure if term life insurance or permanent life insurance is right for you? Morin Insurance offers both types and can help quote you a policy to keep you covered for life. Here’s why permanent life insurance in NH might be good for you.
First off, what is Permanent Life Insurance?
Permanent life insurance provides long-term coverage that will persist and not expire unless the policy is not paid or canceled. With term life insurance policies, your cash benefit is only paid out if the covered person dies during the timeframe of the policy. While policies can be extended or renewed, it is not meant to be a permanent option. Here are three reasons why an NH permanent life insurance may be right for you.
You’ll be earning cash value
Unlike term life insurance policies, a permanent life insurance benefit can be borrowed from prematurely. Premiums paid towards a permanent life insurance policy in NH accrue a cash value over time. These can be taken out as a policy loan and used as a cash benefit. Any cash taken from the policy decreases the death benefit by the amount borrowed if not re-invested back into the policy.
Tax breaks if you need to borrow
Any cash benefits taken out from your policy early are not taxed as income. That is so long as the amount taken out has not exceeded the amount of money paid in premiums. The cash value of your policy is considered “tax-deferred.” This means that the policy cash value is not taxed yearly, reducing the value over time. But one thing to think about, if the policy is canceled or unpaid, the loan is then considered taxable income.
It lasts a lifetime
With Morin Insurance, as long as premiums are paid and no loans, withdrawals, or surrenders are taken, the total amount of the policy will be paid upon death. If you are looking for a permanent life insurance solution in NH, contact Morin Insurance for more information at (603) 875-1200 or email Info@MorinAgency.com.