Permanent Life Insurance

Permanent life insurance is a category of life insurance designed to remain in force for the insured's entire lifetime — not just a fixed term — as long as premiums are paid. In addition to providing a death benefit, permanent policies build cash value on a tax-deferred basis that can be accessed during the insured's lifetime. Major types include whole life (guaranteed premiums and cash value growth), universal life (flexible premiums and adjustable death benefit), indexed universal life (IUL, cash value linked to a market index with a floor and cap), and variable life (investment-linked sub-accounts). Permanent policies are more expensive than term, but they address permanent needs such as estate planning, business succession, and supplemental retirement income.