What is Permanent Life Insurance?
Permanent life insurance provides insurance for life, it never expires like term insurance which promises payment of a specified death benefit within a specified period of years.
Permanent life insurance offers a death benefit with savings, called cash value, in which the policy owner can borrow funds or, in some instances, withdraw cash to help meet personal needs.
There are two main types of permanent life insurance whole life and universal life insurance. Whole life insurance offers coverage for the insured’s entire life and has a savings that can grow at a guaranteed rate. Universal life insurance also offers a savings element in addition to a death benefit, but offers different types of premium structures and earns based on market performance.
