Define: Permanent Life Insurance

UK Accounting Glossary

Definition: Permanent Life Insurance



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Full Definition of Permanent Life Insurance


Permanent life insurance is a form of indemnity that offers extended life insurance coverage and a savings portion known as cash value. Permanent life insurance is a broad definition, marking almost all types of life insurance, excluding group and term. The most common forms of permanent life insurance are whole life, universal, and endowment. Unlike term life insurance, permanent life insurance policies provide life-long protection. In addition to the death benefit, permanent life insuinsurance policy owners are able to accumulate savings through cash value. Permanent life insurance cash value can also be used as a way to borrow money once sufficient reserves accrue. In addition, permanent life insurance policyholders can withdraw funds from the cash value for personal use. Cash value savings associated with permanent life insurance are tax-deferred and remain as such so long as the policy is active and premiums are paid.


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https://payrollheaven.com/define/permanent-life-insurance/
Modern Language Association (MLA):
Permanent Life Insurance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 04, 2020 https://payrollheaven.com/define/permanent-life-insurance/.
Chicago Manual of Style (CMS):
Permanent Life Insurance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/permanent-life-insurance/ (accessed: April 04, 2020).
American Psychological Association (APA):
Permanent Life Insurance. PayrollHeaven.com. Retrieved April 04, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/permanent-life-insurance/

Definition Sources


Definitions for Permanent Life Insurance are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th February 2020.