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There are people who consider buying a life insurance in order to pay for their children's college education plans or buy equipment and appliances in their homes. However this is not a good idea, because premiums are used to buy the coverage for the death benefit and pay for expenses that is used in the insurance itself. If you do buy life insurance, make sure you and your spouse have adequate cover before buying for your children. Also, avoid any extra coverage that you will not need. If you can't afford permanent insurance that you do need, consider a combination of term and permanent life insurance policy.

The variable life insurance policy is a type of permanent life insurance policy that offers the least gurantees but the greatest opportunity to maximize cash value. If you want to purchase this kind of policy, you have to research on it so that you will know what to do and when to do them. A useful article to read is 'The Do's and Don'ts of Buying Variable Life Insurance Policies' written by Peter Katt. In here you will understand more about how variable insurance policies works, the misleading illustrations regarding this policy, defined-benefit designs, defined contribution, premium design, fund selection, policy expenses and helpful tips.

There are different types of permanent life insurance and some of these are the traditional whole life, universal life and variable life. In traditional whole life, you can get the most guarantees and this type is best to purchase if you have trouble saving. In Universal life, you can be assured of premium flexibility in the first years of the policy; it is more flexible than traditional whole life and premiums can even be skipped. In variable life, you are offered the fewest number of guarantees and the greatest potential for cash-value increases, suitable for the risk-taking investor. In buying permanent life insurance, choose the type that best suits your needs and preferences.

What is the difference between permanent and term life insurance and which one should you pick? Permanent life policies offer death benefits and a savings account while term life policies offer death benefits only. This means that in a term life policy, your survivors will get money at the incidence of your death provided that you die within the length of the policy. In permanent life policy, your survivors will get a death benefit plus if you're still alive, you could get back the money by cashing in the policy or borrowing against it. Permanent life insurance premiums cost more than term premiums because of the savings account, but the longer you keep it, the higher your cash value. For term life insurance, the premiums remain constant but you will pay higher premiums during the first few years. So choosing a policy depends on how long you intend to keep it and what you want from it.

Don't buy life insurance without first researching about it and knowing why you need it. Don't be afraid to ask those who know about insurance if you have a question regarding it. Don't hesitate to ask friends and relative for a referral to an insurance agent or broker. If you plan to replace your current policy, don't cancel it unless the new one is in place. Don't buy term insurance that has long terms of coverage unless you're sure it is still needed. The recommended term is 5 or 10 years; even if you'll pay more for premiums if you renew for another term, it is still better than paying unnecessary premiums over a long time.