Search by Keyword
Permanent Life Insurance
Explanation:
Permanent life insurance that remains in effect until the policy holder passes away and does not need periodic renewal, unlike term life insurance. It also includes an investment aspect, which entails a portion of your premium being placed into tax-deferred stocks, bonds, or money-market accounts, the proceeds of which people often use to supplement their income during retirement.
Permanent life insurance policies tend to be more expensive than term policies, at least early on, given the added investment component and the fact that premiums remain the same for the life of the policy and issuers must. Most people use permanent life insurance policies only to cover things like estate taxes, while using term policies to cover costs associated with death.
There are a number of variations of permanent life insurance, including whole life insurance, universal life insurance, and variable life insurance.