Permanent whole life insurance is a type of insurance that provides a very low-cost protection of term life insurance (life insurance that does not expire) and a death benefit with a savings portion. The insurance component, as expected, pays a fixed amount of the premium to the deceased’s family. The investment component, on the other hand, allows the insured individual to borrow or withdraw a certain sum of money against their premium value.

Across the Country, medicine is an expensive field. The cost of medical treatments is exorbitant if an individual is not insured. Hence, it is important for every individual to have insurance, and to choose the right kind of insurance to suit his needs. Insurance can be sub-categorized based on high or low premium, or maximum flexibility. Many organizations like Assurity, American National, Guardian, New York Life, Penn Mutual and United of Omaha offer different types of whole life insurance policy to people.

These days, many people are turning towards ‘no medical exam’ policy to save time and get insured fast. Many companies specialize in providing such policies to people of different ages and levels of income. American National offers whole life insurance up to $150,000 without a medical checkup. These are approved within 48 hours. American national also offers easy conversion and waiver of premium on this. It is one of the cheapest whole life insurance offered in America.

Borrowing from life insurance is perhaps the biggest benefit of buying a whole life insurance policy. However, there are many pros and cons to this. Borrowing from a life insurance is easier than taking a loan from the bank. It involves fewer formalities. If the borrowed amount is significantly less than the cash value of the policy, only then is it advisable. Paying back is also more flexible. On the other hand, loans on policy can risk the amount received through a death benefit. As interest is added as compound interest, ineffective management can lead to the loaned amount exceeding the cash value. In such cases, the policy can even be terminated.