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 ?
A popular permanent insurance option is whole life insurance.
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.
The rider is available on some new permanent insurance policies; it will cost an additional 6% to 10% of the basic policy premium.
PERMANENT INSURANCE, in contrast to term insurance, provides for a tax-deferred build-up of cash values over the life of the contract.
It opens with Terry Gilliam's (overlong) supporting feature, The Crimson Permanent Insurance, which kicks off a series of loosely linked sketches.
If permanent insurance is used in a group-term plan, the cost of the permanent benefit, less any amount contributed by the employee towards that permanent benefit, is included in the employee's taxable income for the year.
Answer--Any permanent or even term coverage can be used in a Section 162 Plan although almost always some form of permanent insurance is indicated to pay-up the policy by the time the insured reaches retirement age.
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.

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