Why You Need a Minimum Life Insurance Which is Permanent

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The first sound of life insurance sounds like a bad thing to many. When we Google it, we hear a tremendous number of stories on how insurance is a con game and just a money-making venture of the insurance agencies and salespersons. People consider insurance more like an expense rather than an investment. More often than not, we tend to think that it’s engaging money in something with no guarantee of needing it in the future and no direct benefit in the present.

But, how do you plan on securing your future in case you or your family member’s health falls all of a sudden? Or if you have dependents, who will take care of them in case something happens to you?

As financial advisors and well-wishers, we say you opt for a healthy mix of investment and insurance to ensure you and your family members are taken care of and don’t face a financial crunch when most in need.

So, what shall be your investment plan? Should you opt for a retirement plan or would an insurance plan be better? It’s never too late to start saving and planning for a secure future.

Let’s understand why you need minimum life insurance that is permanent, and how that shall be a part of your overall investment plans for your future.

What is permanent life insurance, and how does it differ from term life insurance?

Term life insurance covers you only for a specific period of time on payment of a pre-decided premium, which is evaluated based on the age and health of the insured. Such type of insurance insures only against death and doesn’t add any additional value. Hence, a term life insurance is designed to financially secure your dependents in case of your premature death. Therefore there is no direct additional benefit for you in this.

On the other hand, permanent life insurance is a double benefit scheme. It not only insures against the policy holder’s death but also builds an additional cash value. So, permanent life insurance not only insures to financially support your dependents in case of your premature death but also allows you to withdraw or borrow against that cash value. You can borrow from this cash value to fund your child’s education or fund a new home or just use it for your retirement. The amount borrowed is tax-free but charges a high rate of interest on the withdrawn amount, which ranges somewhere around 7–8 percent. Also, the non-payment of the same might end up reducing your death benefit. So, you have to be vigilant in making all the interest payments on time.

Why should you opt for a healthy mix of investment and insurance?

Insurance policies insure you against an uncertain future or in some cases, financial crunches, but they also have their limitations. So, a thorough evaluation prior to making a wholesome investment plan to secure your and your family’s future is essential.

Life insurance usually is costly and something that you might not need down the line. Also, you need to pay the premium until your policy is fully funded, which is not the case with other investment programs. An insurance policy secures your family’s future in case of your premature death and retirement plans ensure you are financially supported after your retirement. So, a balance needs to be maintained on how much and where you invest your money.

Why shall you opt for minimum permanent life insurance?

Needing life insurance or not is a debatable topic for many. But, choosing minimum life insurance can give you good benefits. There are various types of plans and premium schemes that you can opt for as per your bandwidth. Minimum permanent life insurance is a must for those who have dependents because it secures their future and ensures they are taken care of in case of your sudden demise. The second reason why you need it is because of the benefits you can derive from the additional cash value.


As wealth advisors and financial well-wishers, we recommend you plan your future smartly by exploring various types of investment plans. A healthy mix will ensure you and your family are covered from all directions and taken care of in case of any future uncertainties.

Reach out to your MyTaxFiler expert and plan a healthy mix of investment plans to secure your future and gain good returns.

For more such tax news and updates, stay tuned with MyTaxFiler. We also provide a one-stop solution for all your tax-related woes. Simply drop a mail at tax@mytaxfiler.com or call us at (888)-482–0279 for an on-call consultation.

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