Permanent life insurance is a type of life insurance policy that provides coverage for the entire lifetime of the insured. Unlike term life insurance, which only provides coverage for a specified period of time, permanent life insurance remains in effect as long as the premiums are paid. There are different types of permanent life insurance, including whole life insurance and universal life insurance.
Whole life insurance offers a guaranteed death benefit, as well as a cash value component that accumulates over time. It provides lifelong coverage and typically has fixed premiums. The cash value can be accessed through policy loans or withdrawals, and may also be used to pay the premiums.
Universal life insurance also offers lifelong coverage, but it provides more flexibility than whole life insurance. The premiums and death benefit can be adjusted, within certain limits, to fit the policyholder's changing needs. Universal life insurance also has a cash value component that can grow over time.
Permanent life insurance can be a valuable financial tool for individuals who want to provide financial protection for their loved ones and potentially build cash value over time. It is important to carefully consider the terms and features of different permanent life insurance policies before making a decision.