Permanent Life Insurance

Business, Legal & Accounting Glossary

Definition: Permanent Life Insurance


Permanent Life Insurance


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 insurance 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.


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/permanent-life-insurance/
Modern Language Association (MLA):
Permanent Life Insurance. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 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: March 29, 2024).
American Psychological Association (APA):
Permanent Life Insurance. PayrollHeaven.com. Retrieved March 29, 2024
, 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 | 0 Views.