What type of coverage does permanent life insurance provide?

Permanent life insurance is designed to provide lifelong coverage, ensuring that the policy remains in force as long as the premiums are paid. This type of insurance also accumulates cash value over time, which can be accessed by the policyholder through loans or withdrawals. The cash value component distinguishes permanent life insurance from term life insurance, which only provides death benefit protection for a specified term without any cash value accumulation.

Permanent life insurance is well-suited for individuals seeking long-term financial security, as it can provide benefits for estate planning, cover funeral costs, or assist in leaving a legacy for beneficiaries. The cash value grows at a guaranteed interest rate set by the insurance company, and this aspect makes it a unique financial tool, offering both protection and investment opportunities.