Permanent Life Insurance: What Does It Mean?

Permanent life insurance is a type of life insurance policy that provides coverage for the insured's entire lifetime, as long as premiums are paid, and includes a cash value component that accumulates over time. Unlike term life insurance, permanent policies never expire and build tax-deferred savings that policyholders can borrow against or withdraw. The main types include whole life insurance (with fixed premiums and guaranteed cash value growth), universal life insurance (with flexible premiums and death benefits), and variable life insurance (with investment options in the cash value component).