Permanent Life Insurance: Definition, Types, and Difference from Term Life

 Permanent life insurance provides coverage for the full lifetime of the insured person. While permanent life is more expensive than term insurance, permanent policies combine a death benefit with a savings component that earns interest on a tax-deferred basis.The two primary types of permanent life insurance are whole life and universal life. The cash value of whole life insurance grows at a guaranteed rate. Universal life insurance also contains savings and a death benefit, but it features more flexible premium options and its earnings are based on market interest rates. Variable life and variable universal life also provide expanded options to invest the cash value in mutual funds and other financial instruments.


Once you've picked the policy that's right for you, remember to thoroughly research the firms you're considering to ensure you'll get the best life insurance availabl


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