Permanent life insurance
Life insurance intended to last your whole life, often with a cash value component.
Last reviewed June 15, 2026
Reviewed for accuracy and clarity by Sandeep Singh before publication. Learn about our editorial process.
What it means
Permanent life insurance is designed to last your entire life rather than a fixed term, and typically builds a cash value component over time that you may be able to borrow against or draw from. It costs more per dollar of coverage than term insurance.
Why it matters
It fits needs that never expire — like final expenses or estate planning — where term insurance's fixed end date would leave a gap.
Common misunderstandings
- The cash value isn't "free" money — it's built from premiums you've paid, often with fees involved.
- It's not automatically "better" than term — it solves a different problem, at a higher cost.
Where you'll see it
In estate planning conversations and comparisons against term life insurance.
Related terms
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