What Is Permanent Life Insurance?

What Is Permanent Life Insurance? Life insurance is not something that you should joke about because when you are gone it helps to ensure the well-being of your family members that cannot live without you financially. This is one of the reasons why most people go for life insurance but today we are taking a look at what is permanent life insurance.

What Is Permanent Life Insurance?

There are several types of life insurance that are available for customers to go for and today we are focusing on permanent life insurance. So if there is permanent life insurance it means that other insurance policies are not permanent and that is why this article is coming your way today. We’ll take a look at what permanent life insurance is and everything you need to know about it.

What Is Permanent Life Insurance?

The simplest and easiest definition of permanent life insurance is simply an insurance policy that the term of it last forever or does not expire. Most insurance policies especially life insurance policies tend to expire after a certain number of years but in the case of permanent life insurance it does not get expired.

Permanent life insurance basically covers you for the entire length of your life as long as you are still alive and also as you keep on making sufficient timely premium payments. However, the policy is the moment you die as the benefits which are tax-free is paid to the beneficiaries. Permanent life insurance can also be called cash value insurance because of its savings capacity.

How Does The Permanent Life Insurance Work?

Permanent life insurance is what many people will refer to when they talk about Life insurance however not all life insurance is permanent. To initiate a life permanent insurance you need to put in your application and when you are approved you are given the policy so that you can start making payments to keep it up.

Once your application for the permanent life insurance policy is approved you will be given the policy and then we will have to choose your living beneficiaries. As you keep your premium it is printed in 221 goes to the death benefits the other goes towards the cash policy. It is finally when you are dead that the benefit is going to be paid out to the people you listed as beneficiaries.

Advantages and Disadvantages of Permanent Life Insurance

When you have a permanent life insurance policy one of the benefits or advantages is the fact that you are giving people that depend on you a financial lifeline when you are gone. This is the major reason why many people go for permanent life insurance. Another advantage of the permanent life insurance policy is the fact that you can borrow against the cash value.

Types of Permanent Life Insurance

Anyone looking to get a permanent life insurance policy and has decided that it is the right choice for him or her then you need to consider which of type you want to go for. They are basically three types of permanent life insurance policies so you need to know how they work so that you can decide which of them will go for.

Whole Life Insurance

The whole life insurance permanent policy provides you with a death benefit that is guaranteed at a level of premium that does not increase over time like the others. It also gives you the ability to build cash values that you can borrow against and you can earn dividends annually with the policy’s value through other features.

Universal Life Insurance

The universal life insurance policy gives the ability to adjust their premium payment and Also the death benefit in case you want to anytime you like. However, before you will be able to change the death benefits you must have to undergo medical underwriting to increase or decrease them.

Variable Life Insurance

The variable life insurance policy gives you the ability to increase or decrease your premiums with a guaranteed minimum death benefit. Another very important feature of this is the fact that you can invest the cash value of a mutual fund to get more investments.

Guaranteed Issue Life Insurance

This permanent life insurance policy typically offers minimum coverage and does not require any form of a medical check-up.

But when it comes to downside one of the major downsides is the fact that permanent life insurance policies are not easy to maintain as a result of the high premiums you need to pay. So that there is the most risk that you might not be able to afford to keep up with paying the high premiums which can eat into your death benefits to be paid to your beneficiaries.

How to know if you need permanent life insurance

We all know that permanent life insurance gives your relatives and those that are directly dependent on you a financial lifeline when you are gone. But in addition to that, there are certain things that we will consider to know if you made the permanent life insurance policy or not. Some of the things we are going to be considering at  listed below:

  • If you are looking to provide a tax-free inheritance for your children go for this policy.
  • Anyone that wants lifetime coverage to also go for it.
  • To take advantage of insurance coverage while you are still young and in good health pay lower premiums.
  • You are looking to make a large charitable gift or donation when you are gone.

These are some of the reasons not all why you would want to go for the permanent life insurance policy today.


What is the difference between permanent and whole life insurance?

There are basically four types of permanent life insurance policies ever the permanent life insurance policy and whole life insurance policy are similar but have differences in a few ways. One such way is the fact that most insurance line policy combines a death benefit with a serving portion while coverage is for the full lifetime of the insured person and is also a saving portion.

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