What does permanent insurance refer to?

Permanent insurance refers to a type of life insurance that provides coverage for the insured's entire lifetime, as long as the premiums are paid. One of the key features of permanent insurance is that it accumulates a cash value over time, which policyholders can borrow against or withdraw as needed. This cash value component distinguishes it from term insurance, which only offers coverage for a specified period and does not build cash value.

In contrast to term insurance, which is designed to provide a death benefit for a limited time, permanent insurance ensures that a benefit is paid out upon the death of the insured, regardless of when that occurs, making it a more comprehensive option for long-term financial planning. This enduring nature and the capacity to grow cash value over time exemplify the main characteristics of permanent insurance, emphasizing its function as a lifelong financial safety net.