Permanent Life Insurance is a type of life insurance that provides protection for your family and heirs over your entire lifetime. It is a policy with no expiry date - thus, provided you keep up with the payments, the policy will stay in force until you die.
Permanent life insurance includes Whole Life, Variable Life, Universal Life and Indexed Universal Life insurance. Of these, the most common type is Whole Life insurance.
Whole Life Insurance is a permanent policy that offers a guaranteed death benefit and guaranteed cash value, which accumulates steadily over time. This cash value can be used for retirement planning, as an emergency fund for yourself or your family or for other financial goals.
Variable Life Insurance and Universal Life Insurance (also known as Flexible Premium Adjustable Life Insurance) are also permanent policies - offering guaranteed death benefits, but with a cash value component that fluctuates greatly with the stock market and other investment instruments. These policies are generally used for high net-worth individuals, who wish to use life insurance to save for retirement and other long-term goals.
Indexed Universal Life Insurance (IUL) is similar to Variable and Universal Life Insurance, but with a cash value component that is linked to a stock market index (such as the S&P 500). The cash value of an IUL grows based on the stock market performance, but your policy also includes a floor rate of return, providing a degree of safety for your cash value.
In summary, Permanent Life Insurance provides lifelong protection for your family, with a cash value component that can accumulate over time and can be used for retirement planning and other long-term financial goals. Whole Life Insurance is the most common type, but Variable Life Insurance, Universal Life Insurance and Indexed Universal Life Insurance are also permanent policies that are available.
