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May 1, 2024

Understanding Permanent Life Insurance

Life insurance is a crucial part of financial planning. It offers a source of financial relief and peace of mind to individuals knowing that their loved ones will be financially secure in the event of their death. Permanent life insurance is one of the most integral types of coverage and may provide stout fiscal security via lifelong coverage.

What Is Permanent Life Insurance?

Permanent life insurance is a type of insurance policy that can provide coverage for the insured’s entire lifetime. Unlike term life insurance, which covers the insured for a specific period of time (e.g., 10, 20 or 30 years), permanent life insurance does not expire as long as the premiums are paid. These policies also combine their death benefit with potential savings components, allowing the policyholder to build cash value over time. This value can accrue on a tax-deferred basis, meaning you won’t pay taxes on its gains while they’re accumulating.

What Can Different Types of Permanent Life Insurance Offer? Grandmother and Grandfather Holding Child on Their Lap

There are several types of permanent life insurance, each with unique features and potential benefits. To determine the right coverage for you and your family, consider the following options:

  • Whole life—This is the most common type of permanent life insurance. Whole life insurance typically offers a guaranteed death benefit and steady premiums throughout the duration of the insured’s life. These policies can also build cash value over time, which you can borrow against.
  • Universal life—These policies can often offer more flexibility than whole life insurance, including options to increase or decrease your death benefit and to pay your premiums at any time and in any amount after your first premium payment has been made. This type of insurance also has a cash value component, which can earn interest and may increase over time.
  • Variable life—With variable life insurance, you may often allocate a portion of your premiums to a separate account of various investment funds within the insurance company’s portfolio, such as stocks, bonds, equity funds and money market funds. As such, the cash value and death benefit of your policy may fluctuate based on the performance of these investments.

Get the Right Coverage

Not all life insurance is created equal, and even when retaining permanent coverage, your policy details can make a significant difference. With this in mind, it’s important to work with a qualified insurance professional, such as those at Vozza Insurance Agency. Visit our website or call 231-938-6200 to learn more about or to get a personalized quote.


This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information. 

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