permanent insurance


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Related to permanent insurance: Permanent Health Insurance, Permanent life insurance

Whole Life Insurance

A life insurance policy with no expiration date. That is, a whole life insurance policy provides coverage for the entire life of the policyholder (provided he/she continues to make premium payments). When the policyholder dies, regardless of when that is, his/her beneficiaries receive the death benefit. Whole life insurance policies also include a cash surrender value, allowing the policyholder to recover part of the premium he/she has invested in the policy should he/she ever decide to cancel the policy.

permanent insurance

Permanent insurance.

Permanent insurance is a life insurance policy that provides a death benefit as long as you live, or in some cases until you turn 100, provided you continue to pay the required premiums.

With this type of policy, a portion of your premium pays for the insurance and the rest goes into a tax-deferred account in your name.

With many permanent life policies, you can borrow against the cash value that has accumulated in the tax-deferred account. Any amount that you've borrowed and have not repaid at the time of your death reduces the death benefit.

If you terminate the policy, you get the cash surrender value back. Cash surrender value is the cash value minus fees and expenses.

Permanent life insurance, also known as cash value insurance, is available in several varieties, including conventional policies known as straight life or whole life, as well as universal life and variable universal life.

References in periodicals archive ?
For example, clients need to know up front that permanent insurance is a long-term commitment and must be maintained or the death benefit will be lost.
She urges young clients to buy permanent insurance due to its guarantees.
3m) For the tax treatment of the cost of group permanent insurance under a qualified plan, see Q 3754.
Use of cash value or May result in unfavorable permanent insurance taxation to covered employee.
Permanent insurance, or cash-value insurance, is more appropriate if you have significant excess cash flow or an estate situation.
This is done through front-end spending of a permanent insurance policy that is called the Accelerated Death Benefit (ADB), or Life Benefit.
Business-owned life insurance is permanent insurance held by employers on the lives of their employees, and the employer is the beneficiary of these policies.
The Section 162 Bonus Plan may be helpful in any situation in which personally-owned permanent insurance will be used as part of an employee fringe-benefit program.
The company worked with underwriters the Liverpool Victoria Life Company, formerly the Permanent Insurance Company, for several months to create actuarial tables for the vegetarian lifestyle.
But Permanent Insurance would not insure our fireman, while UNUM quoted pounds 28.
Split-dollar life insurance is permanent insurance acquired under an arrangement in which the employer and the employee share the cost of the policy as well as the benefits and proceeds.
Last month Equitable sold its subsidiary Permanent Insurance to rival Liverpool Victoria in a pounds 150 million deal.

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