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 ?
To counter the competition, insurers responded in 1980 with a form of permanent insurance called universal life.
Split-dollar insurance plans generally are used to provide permanent insurance protection and sometimes post-retirement income.
Considering the period of time for which you need coverage to determine if term or permanent insurance is right for you; and
In addition to term life insurance, John Hancock offers a broad suite of diverse permanent insurance products including universal life insurance, indexed universal life insurance and variable universal life.
It made strides in the region, and perhaps it sought after the bomb to protect this role and as a permanent insurance policy for its regime.
Consumers buy universal life policies with secondary guarantees to obtain permanent insurance that cannot lapse if they pay a stipulated premium determined at the time of purchase.
An advisor today needs to be explaining that the need is greater than ever before for permanent insurance in retirement to assure this infusion of cash because longevity is such a tough issue.
In some cases when you leave an employer, you also leave the life insurance policy behind, but Justin notes that "some jobs offer a conversion privilege, which in essence 'converts' the policy from term to permanent insurance without evidence of insurability.
Term also can be used as a temporary solution for protection with an option to convert the policy to permanent insurance at a later date--for example, if cash is tied up in stock options, conversion to permanent insurance could happen once cash flow improves.
A skilled agent needs to highlight the importance of permanent insurance and the proper amount of coverage to convince the client to reach into their own pocket for more protection instead of relying on something temporary.
However, they confirm that the board is now exploring the sale of some of its operations - including their well- regarded sales force and the Permanent Insurance company.
Troubled mutual life insurer Equitable Life is to sell its subsidiary Permanent Insurance to rival Liverpool Victoria Friendly Society in a pounds 150 million deal, it said yesterday.

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