Permanent life insurance

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Permanent life insurance

Permanent life insurance is a type of life insurance that provides coverage for the entire lifetime of the policyholder, as long as the premiums are paid. Unlike term life insurance, which provides coverage for a specified term (e.g., 10, 20, or 30 years), permanent life insurance does not expire as long as the policy remains in force i.e. premiums are paid or as per the contract rules.

There are several key features of permanent life insurance:

Terminology of Permanent life insurance:

Understanding the terminology associated with permanent life insurance is essential for making informed decisions about policies. 

Here are key terms commonly used in the context of permanent life insurance:

Permanent Life Insurance:
A category of life insurance that provides coverage for the entire lifetime of the insured, as long as premiums are paid. It includes various types such as whole life and universal life.
Cash Value:
The savings or investment component of a permanent life insurance policy. A portion of the premium payments is allocated to a cash value account, which accumulates over time and can be accessed by the policyholder.
Death Benefit:
The amount paid to the beneficiaries upon the death of the insured. This is the primary purpose of life insurance, providing financial protection to surviving family members.
The periodic payments made by the policyholder to keep the insurance policy in force. In permanent life insurance, premiums are often higher than those for term life insurance due to the cash value component.
Policy Loan:
Borrowing against the cash value of a permanent life insurance policy. The policyholder can take a loan using the cash value as collateral. However, unpaid loans may reduce the death benefit and cash value.
Surrender Value:
The cash value available to the policyholder if they choose to surrender or cancel the permanent life insurance policy before death. Surrendering a policy may have tax implications.
In the context of participating whole life insurance, dividends represent a portion of the insurer’s profits distributed to policyholders. Policyholders can use dividends to pay premiums, accumulate cash value, or receive as cash.

Understanding these terms can help individuals navigate discussions with insurance professionals and make informed decisions when selecting a permanent life insurance policy.

It’s advisable to carefully review policy documents and consult with financial advisors at to ensure a thorough understanding of the specific terms and conditions associated with a chosen policy.

What are the types of permanent life insurance?

There are several types of permanent life insurance, each with its own features and benefits. The main types include:
whole life insurance

Factors affecting the premiums of permanent life insurance:

Several factors influence the premiums of permanent life insurance. Understanding these factors can help individuals assess their insurance needs and determine the cost of coverage.

Here are key factors that can affect the premiums of permanent life insurance:


Health Status:


Occupation and Lifestyle:

Smoking Status:

Coverage Amount:

Policy Type:

Payment Structure:

Riders and Additional Features:

Cash Value Component:

Insurance Company and Underwriting Criteria:

Difference between Permanent life insurance and Term life insurance:

Reasons why individuals consider permanent life insurance to be preferable over term life insurance.

Criteria  Permanent life insurance  Term life insurance 
Coverage duration  Provides coverage for the entire lifetime of the insured. Offers coverage for a specific term (e.g., 10, 20, 30 years).
Cash value  Builds cash value over time, allowing policyholders to access funds through loans or withdrawals. Lacks a cash value component; premiums solely contribute to the death benefit.
Financial Planning  Serves as a long-term financial planning tool, combining life insurance with a savings or investment component. Primarily focuses on providing a death benefit during the term; limited financial planning features.
Premiums Whole life insurance policies typically come with fixed premiums for the life of the policy, providing predictability. Premiums may increase significantly when renewing term policies after the initial term expires.
Estate planning  Can be used for estate planning, providing a tax-free death benefit to cover estate taxes or leave an inheritance. Term insurance may not be as effective for complex estate planning needs.
Access to funds  Policyholders can access cash value for various needs without surrendering the policy entirely. No access to accumulated cash value during the term; premiums contribute solely to death benefit.
Affordability over time  While premiums are higher, the policyholder may find long-term affordability due to the cash value component. Generally more affordable in the short term, but premiums may increase significantly if renewed after the initial term.

Why buy permanent life insurance from

At, we understand that securing your financial future is a top priority. When it comes to permanent life insurance, our brokerage solutions stand out as the best choice for individuals seeking comprehensive coverage, financial flexibility, and peace of mind.
1. Tailored Coverage to Meet Your Needs:
Our experienced team at takes a personalized approach to understand your unique financial goals and life circumstances. We work closely with top-rated insurance providers to tailor permanent life insurance solutions that align with your needs, ensuring that you receive the coverage that matters most to you and your loved ones.
2. Comprehensive Range of Permanent Life Insurance Options:
We recognize that one size does not fit all. That’s why offers a diverse range of permanent life insurance options, including Whole Life Insurance, Universal Life Insurance, and more. Whether you seek guaranteed coverage, flexible premiums, or investment opportunities, we have the right solution to match your preferences.
3. Competitive Premiums and Cost-Effective Solutions:
Affordability is a key concern for our clients, and we prioritize cost-effective solutions without compromising on quality. Our brokerage services allow us to compare quotes from leading insurance providers, ensuring that you receive the most competitive premiums for the coverage you need. We believe in making permanent life insurance accessible to all who value long-term financial security.
4. Expert Guidance and Transparent Advice:
Navigating the complexities of permanent life insurance can be overwhelming, but with, you are never alone. Our team of knowledgeable insurance professionals provides expert guidance, answering your questions and offering transparent advice to help you make informed decisions about your financial future. We are committed to building lasting relationships based on trust and integrity.
5. Innovative Technology for Hassle-Free Processes:
At, we leverage cutting-edge technology to streamline the insurance process for our clients. From obtaining quotes to completing applications, our user-friendly platform ensures a hassle-free experience. We prioritize efficiency, allowing you to focus on what matters most while we take care of the details.
6. Commitment to Customer Satisfaction:
Our commitment to customer satisfaction is at the core of everything we do. We prioritize clear communication, prompt responses, and ongoing support throughout the life of your policy. Your peace of mind is our priority, and we are dedicated to exceeding your expectations at every step of the way.

Choose for your permanent life insurance needs and embark on a journey towards financial security and peace of mind. Let our expertise, personalized approach, and commitment to excellence guide you on the path to a secure and prosperous future.


Contact us today to explore the best permanent life insurance solutions tailored just for you. 


Your financial well-being is our business.

Related Blogs

Permanent Life Insurance

Life insurance policies that do not expire are referred to as permanent life insurance. Permanent life insurance usually includes a death payout and a savings component.


What are the different types of permanent life insurance? 


Both whole and universal life provide lifelong coverage and tax-free cash gain, but they are structured differently. Whole life and universal life are the two most common types of permanent life insurance. Whole life insurance provides coverage for the insured’s whole life, and the funds grow at a guaranteed set rate. Universal life insurance, in addition to a death benefit, provides a savings component that varies with the payment frequency and market performance where the premiums (funds) are invested. 


Whole life insurance

  • Guaranteed cash values
  • Guaranteed insurance payout
  • Guaranteed premiums
  • No non-guaranteed feature in whole life insurance

  Universal insurance

  • Guaranteed cash values on some portion of the policy
  • Choose your investment options<
  • Generally less expensive than whole life insurance
  • Flexibility in premium payments

Understanding Permanent Life Insurance 


Unlike term life insurance, which guarantees payment of a defined death benefit for a set number of years, permanent life insurance lasts the insured’s whole life (thus the name), unless the policy is lapsed due to nonpayment of premiums. Premiums for permanent life insurance are used to sustain the policy’s death benefit and allow the policy to accumulate cash values. The policy owner can use the cash value to borrow funds or, in some cases, withdraw cash directly to help fulfil needs such as paying for a child’s college tuition or medical expenditures. After purchasing a permanent life insurance policy, there is usually a waiting period during which borrowing against the savings part is not authorised. This helps the fund to accumulate enough cash. The insurance policy and all coverage will be terminated if the total unpaid interest on a loan, plus the outstanding loan sum, exceeds the cash value of the policy. Permanent life insurance policies have a tax advantage. The cash value grows on a tax-deferred basis, which means that the policyholder does not pay taxes on any earnings as long as the policy is active. Cash values, after the specific premium restrictions are met, can be taken out of the policy without being taxed because policy loans are normally not considered taxable income. Before the term life insurance policy expires, several companies give the option to convert it to permanent life insurance. Also, called the conversion feature of the term life insurance. Once you’ve decided on the policy that’s suitable for you, do your homework on the companies you’re considering to ensure you’re getting the best permanent life insurance at the best rates.


 Permanent Life Insurance vs. Term Life Insurance 


Different people require different types of insurance at different times in their lives. Term life insurance is popular because of its low premiums, although many term policies expire before the insured’s death. While the goal is to have paid off most debt and other financial obligations by that time, as well as amass enough savings to eliminate the need for a large amount of life insurance, some people may find that they prefer ongoing coverage and savings opportunities, and thus would benefit from a permanent policy. As a result, many term life insurance includes the opportunity to convert to permanent policies at a later date, typically without the need to re-qualify through a medical exam or questionnaire. For someone with medical difficulties that would make a new policy quite expensive, or chronic ailments that necessitate continuous spending that might be deducted from the savings component, such a provision of conversion sounds appealing. Permanent life insurance rates are substantially higher than term life insurance premiums, but most people who want to invest in such plans have made enough money in their lives to afford it. They can also use it as a tax-advantaged investment vehicle to fulfil the needs of lifetime dependents or for estate planning purposes – all thanks to the additional savings opportunity. 


Key Takeaways

  • Unlike term life insurance, permanent life insurance has a savings component in addition to death benefit.
  • Whole life and universal life are the most common types of permanent life insurance.
  • Tax advantages are available for permanent life insurance contracts. is your one-stop shop for all types of personal insurance. From excellent life insurance to investments and savings plans to high-quality, inexpensive insurance for newcomers and Super Visa applicants, there is something for everyone. Please call our office for a no-cost consultation. Happy to help with low-cost, budget-friendly, flexible insurance options. If you need any support, you can book a free consultation with me. 

— Aman Ahuja 
Financial Security Advisor 
[email protected] 
Life | Critical | Super visa

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