Permanent life insurance is insurance where a portion of the premiums are invested, creating a cash value for the policy while providing financial protection if the insured person dies. Permanent life insurance premiums are higher than term life insurance premiums but there is a payout of benefits at the end of the policy, even if the person insured remains in perfect health.
Permanent Life Insurance Key Points:
- Can act as a savings plan with tax benefits
- Guaranteed cash values
- Good for a lifetime with guaranteed premiums