Life insurance that provides coverage for your entire lifetime as long as premiums are paid, unlike term life which expires after a set period. Permanent policies include a cash value component and come in several forms: whole life, universal life, and variable life.
Related Terms
Term Life Insurance
Life insurance that provides coverage for a specific period, typically 10, 20, or 30 years. If the insured dies during the term, the beneficiary receives the death benefit. If the term expires, coverage ends with no payout. Term life is the most affordable type of life insurance.
Universal Life Insurance
A type of permanent life insurance that offers flexible premiums and an adjustable death benefit. The cash value earns interest at a rate set by the insurer. You can increase or decrease your premium payments and death benefit within certain limits.
Whole Life Insurance
The most traditional form of permanent life insurance, offering a guaranteed death benefit, fixed premiums, and guaranteed cash value growth. Whole life policies may also pay dividends. Premiums are higher than term life but remain level for your entire life.