Is a type of life insurance policy that provides coverage for a certain period of time, or a specified “term” of years, usually; 10,15,20,25,30 years. If the insured dies during the time period specified in the policy and the policy is active or in force, then a death benefit will be paid.
Permanent Life Insurance
An umbrella term for life insurance plans that do not expire (unlike term life insurance) and combine a death benefit with savings portion. This savings portion can build a cash value – against which the policy owner can borrow funds, or in some instances, the owner can withdraw the cash value to help meet future goals such as paying for a child’s college education. The two main types of permanent life insurance are, whole and universal life insurance policies.