Permanent Insurance: Permanent insurance is a life insurance policy that provides a death benefit as long as you live, or in some cases until you turn 100, provided you continue to pay the required premiums. With this type of policy, a portion of your premium pays for the insurance and the rest goes into a tax-deferred account in your name. With many permanent life policies, you can borrow against the cash value that has accumulated in the tax-deferred account. Any amount that you’ve borrowed and have not repaid at the time of your death reduces the death benefit. If you terminate the policy, you get the cash surrender value back. Cash surrender value is the cash value minus fees and expenses. Permanent life insurance, also known as cash value insurance, is available in several varieties, including conventional policies known as straight life or whole life, as well as universal life and variable universal life.

 

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Permanent Insurance: Permanent insurance is a life insurance policy that provides a death benefit as long as you live, or in some cases until you turn 100, provided you continue to pay the required premiums. Wit . . . View Full Definition

Life Insurance: Life insurance is a contract you sign with an insurance company, obligating it to pay a death benefit of a certain value to the beneficiaries you name. In most cases, the payment is made at . . . View Full Definition

Universal Life Insurance: Universal life insurance is a type of permanent insurance that offers flexible premiums and a flexible death benefit. Your tax-deferred cash value account accumulates at least the guaranteed . . . View Full Definition

Whole Life Insurance: A whole life insurance policy is a type of permanent insurance that provides a guaranteed death benefit and has fixed premiums. This traditional life insurance is sometimes also known as str . . . View Full Definition