Permanent Life Insurance | 5 Facts You Need to Know

Permanent Life Insurance | 5 Facts You Need to Know

by Leslie Freeland, November 23, 2017

Permanent Life Insurance Facts | 5 Facts You Need to Know

Many Americans put off buying the life insurance they need because they don’t understand what type of life insurance policy to buy. Is this you? Do you ever ask yourself, “Should I buy Term Life Insurance?” Or do you find yourself wondering, “Should I buy Permanent Life Insurance?” Or maybe you didn’t even know there was more than one type of life insurance.

And it can get more complicated than that.

For example, did you know that there are three different types of Permanent Life Insurance: Universal Life Insurance, Whole Life Insurance and Variable Life Insurance? Don’t worry; we’re not going to overload you with all the details of each (not today anyway!).

Just know that the following five facts typically apply to all three types of Permanent Life Insurance.


Fact #1:

Permanent Life Insurance provides you with life insurance coverage for your entire life.

Unlike Term Life Insurance (a life insurance policy that you own for a certain amount of time, such as 20 years), Permanent Life Insurance never expires. Much like renting a home, Term Life Insurance provides you with the coverage you need for as long as the length of time you select. When that time is up, your life insurance coverage ends. In contrast, a Permanent Life Insurance policy is more like buying a home. You own both your home and your Permanent Life Insurance policy – for life – as long as you keep making the payments.

Fact #2:

Permanent Life Insurance can’t be canceled.

Once you’ve been issued a policy, and as long as you pay your premiums, your Permanent Life Insurance policy will provide you with life-long insurance protection that can’t be cancelled – regardless of your age or health. And because it won’t expire after a certain time, you don’t have to worry about having to buy a new policy once the old one ends. This is important because if you did have to buy a new policy, your monthly premium may be much higher because of your age or health.

Fact #3:

Permanent Life Insurance builds cash value.

Much like buying a house, Permanent Life Insurance builds in value over time (similar to equity in a home). This is called cash value. You build cash value when the money that you put into your policy grows and continues to grow over the years. This cash value is yours to borrow for anything you like: a down payment on a home, a child’s education, or even a supplement to your income in retirement.* And, if at some point you decide to cancel the policy, any cash value growth is yours to keep.

Fact #4:

Permanent Life Insurance premiums will never increase.

The premiums (the amount of money you pay each month) that you pay for a Permanent Life Insurance policy are guaranteed to never increase. The price you pay today is what you’ll continue to pay for as long as you maintain your policy.

Fact #5:

Permanent Life Insurance payments may sometimes be skipped.

If at any time you would like to skip a payment, you may be able to use the cash value in your policy to cover your premium for that month – provided you have enough available cash value. The flexibility of a Permanent Life Insurance policy gives you the security of knowing your policy won’t lapse if you find yourself in a tight spot. Always check to see how much cash value you have before you choose to skip a payment.


Understanding life insurance can be complicated, and you may be confused as to what type of policy you need. Or you may not even know what all of your options are.

With Asurea, you don’t have to be the expert – that’s our job. Contact us, and we’ll put you in touch with one of our Asurea Agents who can walk you through the basics to determine your life insurance needs, and to help you select the right policy for you and your family (whether it’s Term Life Insurance or Permanent Life Insurance).




Asurea offers Life Insurance, Mortgage Protection Life Insurance, Medicare Supplement Insurance, Final Expense Insurance, Disability Insurance, Long-term Care Insurance, Retirement Planning products and more. For additional information, click on the ‘Learn More’ button below. Want to have articles just like this delivered to your inbox? Just enter your email address in the box below and click ‘Subscribe.’

This information is provided for general consumer educational purposes and is not intended to provide legal, tax or investment advice. Loans borrowed from your life insurance policy will accrue interest. An outstanding loan balance (loan plus interest) will be deducted from the death benefit at the time of claim.

Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage, and will reduce the death benefit and policy values. Dollar amounts are for illustrative purposes, not actual


Leslie Freeland

Leslie Freeland

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Leslie joined Asurea as the Marketing Communications Coordinator in February 2015. Since then, she has been working closely with insurance professionals to educate the public on the importance of life insurance and protect the public from common scams with informational articles.
Leslie Freeland