Permanent life insurance is a type of life insurance policy that never expires, unlike term life insurance, which has an expiration date. The main benefit of permanent life insurance is ensuring your life insurance coverage lasts for your entire life, to guarantee your family members financial security no matter your lifespan.

Permanent life insurance typically combines a death benefit with a savings component. Whole life insurance and universal life insurance are two basic types of permanent life insurance. Whole life is the simplest type that pays out a set amount when you die, making it less flexible for the insured. Universal life insurance offers more flexibility, and the death benefit, premiums, and even the cash value can be adjusted by the policyholder. Permanent life insurance policies also tend to receive favorable tax treatment.

Unlike term life insurance policies, permanent life have much higher premiums, as they are much more expensive due to the savings component included in the policy. The savings component gives you access to cash value, allowing policyholders to borrow or withdraw money down the line. Borrowing and withdrawing is not free though, as most policies charge a fee and will reduce the death benefit amount.

Ultimately, they type of life insurance policy you purchase depends on your budget, your needs, and your long-term goals. Permanent life insurance can be a great investment for those who are looking to provide lasting financial security for their families. Those with limited funds might be better suited for term life insurance, as the premiums are much more affordable.