What can these have in common, you might ask? When purchasing term life insurance policy you might as well compare it to leasing a vehicle. You can make use of the car all the period you pay the leasing and once you end up this period you give up this car. The same goes for term life insurance while you pay the premiums set for the policy.
On the other hand, when you purchase a whole or permanent life insurance, all you do you is accumulating more value on the specific policy. The same goes with purchasing a car, you become the owner of a valuable asset.
There is however a difference: while the insurance policy increases in value over the years, the value of the car decreases more the years pass by. With insurance policies you will see that their name is received in accordance with the way they gain more value. Therefore you will find whole life insurance, universal policies and variable universal life insurance plan. Continue reading