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Your Guide to Understanding Permanent Life Insurance

Updated: Feb 5, 2023

Life Insurance

What is Permanent Life Insurance?

Permanent life insurance is a type of life insurance that provides coverage for the entire life of the policyholder. This type of insurance is also known as whole life insurance or universal life insurance.

Why Permanent Life Insurance?

Unlike term life insurance, which only provides coverage for a specified period of time, permanent life insurance remains in effect as long as the premiums are paid. This means that as long as the policyholder continues to pay the premiums, their loved ones will be protected by the policy.

Your Benefits - The value of using this tool

One of the main benefits of permanent life insurance is that it can be used as a financial planning tool. Many people use permanent life insurance to help save for retirement, pay off debts, or provide for their loved ones in the event of their death.

In addition to providing coverage for the entirety of the policyholder's life, permanent life insurance also has a savings component. This means that a portion of the premiums paid into the policy are set aside in a cash value account.

You as the policyholder can then access this cash value for things like paying off debts, making investments, or covering unexpected expenses. As an additional benefit these savings accumulate tax deferred, and if your policy is designed well, you can access these values income tax free. Hint, hint... think tax smart retirement income.


There are several types of permanent life insurance, including whole life insurance, universal life insurance, and variable universal life insurance which we will discuss in separate posts. Each type has its own unique features and benefits, so it's important to choose the one that is right for you and your needs.

Overall, you've learned that permanent life insurance is a great way to ensure that your loved ones are protected in the event of your death. It can also be used as a financial planning tool to help you save for the future and achieve your financial goals.

To get more details on they types of Permanent Life Insurance, and which ones may be best for your Financial Plan, feel welcome to contact us at


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