Permanent life insurance is a type of life insurance that provides coverage for the entire lifetime of the insured, as long as the premiums are paid. There are several key features and components to understand about how permanent life insurance works. Firstly, permanent life insurance includes a death benefit, which is the amount paid to the beneficiaries upon the death of the insured. This death benefit is generally income tax-free and can be used to cover funeral expenses, replace lost income, pay off debts, or provide financial security for the insured's loved ones. Secondly, permanent life insurance also includes a cash value component. A portion of the premium payments goes towards building cash value, which grows over time on a tax-deferred basis. This cash value can be accessed through policy loans or withdrawals during the insured's lifetime, providing a potential source of funds for various financial needs. Additionally, the policyholder has the option to use the cash value to pay premiums or purchase additional coverage. Furthermore, permanent life insurance policies come in various forms, such as whole life insurance and universal life insurance. Whole life insurance offers fixed premiums, a guaranteed death benefit, and guaranteed cash value growth, while universal life insurance provides more flexibility in premium payments and death benefit options. In conclusion, permanent life insurance is designed to provide lifelong protection and financial benefits, making it an important consideration for individuals seeking long-term security for themselves and their loved ones.