What is "permanent life insurance"?

What is "permanent life insurance"?

• A. A policy that covers the insured for a limited time period
• B. A policy providing coverage for the insured's entire life
• C. A policy that requires annual renewal
• D. A type of insurance that does not accumulate cash value

Answer: (B)

Permanent life insurance is defined as a policy that offers lifelong coverage to the insured. This type of insurance remains in force for the entire lifetime of the insured, as long as the premiums are paid. One of the distinguishing features of permanent life insurance is its ability to accumulate cash value over time, which can be borrowed against or withdrawn by the policyholder. In contrast, other types of life insurance, such as term insurance, provide coverage only for a specified time period and do not build cash value. The attributes of permanent life insurance, including its enduring nature and cash value potential, are essential for individuals looking for long-term financial security and legacy planning. Thus, the option indicating that permanent life insurance provides coverage for the insured's entire life accurately reflects its fundamental characteristics.

Permanent life insurance is defined as a policy that offers lifelong coverage to the insured. This type of insurance remains in force for the entire lifetime of the insured, as long as the premiums are paid. One of the distinguishing features of permanent life insurance is its ability to accumulate cash value over time, which can be borrowed against or withdrawn by the policyholder.

In contrast, other types of life insurance, such as term insurance, provide coverage only for a specified time period and do not build cash value. The attributes of permanent life insurance, including its enduring nature and cash value potential, are essential for individuals looking for long-term financial security and legacy planning. Thus, the option indicating that permanent life insurance provides coverage for the insured's entire life accurately reflects its fundamental characteristics.