Permanent life insurance is a type of life insurance where the policy is for the life of the insured, the payout is assured at the end of the policy and the policy earns cash value. It was originally offered as a premium fixed return product known as cash surrender life insurance, which offered consumers guaranteed cash value accumulation and a regular premium. When consumers clamored for more flexibility the universal life insurance, which allows consumers flexibility for premium payments, was offered. This policy allows consumers to permanently withdraw cash from the policy without the interest associated with the loan provisions in whole life policies and it retained the fixed investment performance of whole life policies.

This entry was posted on Wednesday, February 10th, 2010 at 5:39 am and is filed under Life Insurance Policy. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.