Unlike term life, permanent life insurance offers coverage that lasts the policyholder’s entire lifetime, as long as premiums are paid. It’s a more complex product with two key features: a death benefit and a cash value component. This dual purpose makes it both a protection tool and a financial asset, appealing to those seeking long-term security.

There are several types of permanent life insurance, with whole life and universal life being the most common. Whole life offers fixed premiums and a guaranteed cash value that grows steadily over time, often at a set interest rate. Universal life provides more flexibility, allowing policyholders to adjust premiums and death benefits as their needs change, with cash value tied to market performance or interest rates.

The cash value is a standout feature. It accumulates tax-deferred and can be borrowed against or withdrawn during the policyholder’s lifetime, acting like a savings account. For example, someone might use it to cover emergencies, supplement retirement, or even pay premiums if funds are tight. However, loans or withdrawals reduce the death benefit unless repaid.

Permanent life comes at a higher cost—premiums can be five to ten times more than term life for the same death benefit. A $250,000 whole life policy might cost $200–$300 monthly, depending on age and health. This reflects its lifelong coverage and investment-like benefits. It’s best suited for those with long-term financial goals, like leaving an inheritance or building wealth, rather than just temporary protection. While not for everyone, permanent life insurance offers a versatile, enduring solution.