permanent insurance


Whole Life Insurance

A life insurance policy with no expiration date. That is, a whole life insurance policy provides coverage for the entire life of the policyholder (provided he/she continues to make premium payments). When the policyholder dies, regardless of when that is, his/her beneficiaries receive the death benefit. Whole life insurance policies also include a cash surrender value, allowing the policyholder to recover part of the premium he/she has invested in the policy should he/she ever decide to cancel the policy.

permanent insurance

See cash-value life insurance.

Permanent insurance.

Permanent insurance is a life insurance policy that provides a death benefit as long as you live, or in some cases until you turn 100, provided you continue to pay the required premiums.

With this type of policy, a portion of your premium pays for the insurance and the rest goes into a tax-deferred account in your name.

With many permanent life policies, you can borrow against the cash value that has accumulated in the tax-deferred account. Any amount that you've borrowed and have not repaid at the time of your death reduces the death benefit.

If you terminate the policy, you get the cash surrender value back. Cash surrender value is the cash value minus fees and expenses.

Permanent life insurance, also known as cash value insurance, is available in several varieties, including conventional policies known as straight life or whole life, as well as universal life and variable universal life.