Ninja Life Insurance Policies
There are two main types of life insurance policies that a ninja, or anyone, would take out: term life insurance and permanent life insurance.
Term Life Insurance
Term life insurance policies are the lowest cost and most common type of life insurance policies you are going to find on the market. You are basically insuring your life for a number of years, or a term. The term is usually anywhere between 10 and 30 years. If you die during the term then your family will receive the death benefit. If you are still living when your term expires, your protection expires as well. Unlike permanent life insurance, there is no cash value accumulated with term life insurance. If you live throughout the term than you will most likely never see anything in return for the money you spend insuring your life over the life of the term.
Some of the benefits of term life insurance include:
- Cheaper and more temporary coverage
- Can be converted to a permanent policy
- The death benefit will be income tax free
Some of the cons of term life insurance include:
- Your premiums could rise the older you get when taking out a new term insurance plan.
- You don't build cash value, so when your policy ends you have nothing to show for the money you spent.
- Doesn't cover your entire life, just a part of your life.
Permanent Life Insurance
A permanent life insurance policy will last your entire life. A permanent life insurance policy will build cash value, so if you reach a certain age your coverage could end and you would receive the cash value your policy has built up over the years. You can even borrow against the value of these policies, using your life insurance policy to fund college tuition or other expenses like home improvement or buying a new car. Check out our other page if you are having trouble choosing a life insurance policy.
Some of the benefits of permanent life insurance include:
- A cash value is built over the life of the policy
- Coverage lasts for a life time, not just a pre-set term.
- Can borrow against the value of your policy.
Some of the cons of permanent life insurance include:
- More costly than term life insurance in the beginning.
- When you borrow against your life insurance policy your death benefit decreases.
- Canceling your policy could cause you to pay enormous taxes on the cash value of your policy.
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