Permanent life insurance is a term sometimes used for life insurance, such as whole life or endowment, where the sum assured is due to be paid out at the end of the policy (assuming the policy is kept current) and the policy accrues a cash value.
This is contrasted with Term life insurance where insurance is purchased for a specified period (such as 5, 10, or 20 years) and a benefit is only paid out if the insured dies during this period.
The earliest form of permanent life insurance was offered in the 18th century as a fixed premium fixed return product known as whole life insurance. There were untold variations on this theme over the years. One example, which became popular in the United States in the late 20th century, was "universal life insurance". This allowed the policyholder considerable flexibility as to the amounts and timing of premiums. Some versions also allowed the policyholder to partially encash the policy (as opposed to taking a loan on the security of the policy) without the interest associated with the loan provisions in whole life policies. "Variable life insurance" or "linked life assurance" is similar, but the benefits are more directly linked to investment performance, thus shifting some risk to the policyholder.
Read more about Permanent Life Insurance: Higher Premiums
Famous quotes containing the words permanent, life and/or insurance:
“It was hard for an American to understand the contented acceptance by English men and women of permanent places in the lowest social rank.”
—Virginia Crocheron Gildersleeve (18771965)
“If certain, when this life was out
That yours and mine, should be
Id toss it yonder, like a Rind,
And take Eternity”
—Emily Dickinson (18301886)
“... business training in early life should not be regarded solely as insurance against destitution in the case of an emergency. For from business experience women can gain, too, knowledge of the world and of human beings, which should be of immeasurable value to their marriage careers. Self-discipline, co-operation, adaptability, efficiency, economic management,if she learns these in her business life she is liable for many less heartbreaks and disappointments in her married life.”
—Hortense Odlum (1892?)