What Does Permanent Life Insurance Mean?
Permanent life insurance is a type of life insurance that is typically designed to provide life insurance coverage until a person dies. This is different than other life insurance options such as term life insurance, which is only designed to provide life insurance for a specific period of time. Permanent life insurance premiums are typically much higher than term life insurance premiums. Also, permanent life insurance commonly offers investing and savings components, and accelerate riders.
Insuranceopedia Explains Permanent Life Insurance
Permanent life insurance often includes a savings component. It works by using a portion of the premiums paid to make investments. Over time, the cash value of these investments can grow. This can make the insurance policy worth a lot more. Different permanent life insurance policies have different options for what a policyholder can do with the accumulated savings. Some allow the policyholder to withdraw the savings to use for other things, such as a child's education. Some allow the savings to be borrowed against.