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Permanent Life Insurance

Last updated: June 17, 2017

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.


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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.

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