Permanent life insurance, also known as whole life insurance, is a type of insurance that provides coverage for the entire lifetime of the insured individual, rather than a specified term. Unlike term life insurance, which provides coverage for a specific period (e.g., 10, 20, or 30 years), permanent life insurance remains in force as long as the policyholder continues to pay the premiums.

One of the key features of permanent life insurance policies is the savings component. These policies have a built-in cash value or accumulated account value that grows over time. A portion of the premium payments goes towards this cash value, which can accumulate on a tax-deferred basis.

It's important to note that there are different types of permanent life insurance policies, including whole life, universal life, and variable life. While they all offer lifetime coverage and a savings component, they may differ in how the cash value is invested and the flexibility of premium payments.

With permanent life insurance, the death benefit remains fixed, providing a guaranteed payout to the designated beneficiary upon the death of the insured. Additionally, the policyholder can access the cash value through loans or withdrawals, offering a degree of financial flexibility during their lifetime.

Whole life insurance is one specific type of permanent life insurance that has a fixed premium outlay and death benefit. It is designed to provide stable and consistent coverage throughout the insured's life, making it a popular choice for those seeking lifelong protection and a predictable premium structure.

In summary, permanent life insurance offers lifetime coverage, a savings component with cash value accumulation, and a fixed death benefit. It can be a valuable financial tool for long-term protection and estate planning, providing peace of mind to policyholders and their loved ones.

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