A permanent life insurance policy stays in place so long as a death benefit will be paid someday.  You do not pay a premium from the date you purchase the policy until death because there is a premium period which dictates how long will pay the premium.  When your policy period ends, your policy stays in effect and will continue to grow.

A permanent life insurance policy has an accumulated cash value that grows in a tax advantage way and is available for you to access at anytime for any reason throughout your life.  There are three types of permanent life insurance to choose from: universal life, variable universal life, and whole life.

Universal life insurance does not necessarily have a fixed premium and allows you to adjust the amount of premium you will pay in any given year.  Universal lie has a death benefit that should not expire and an accumulated cash value feature which can be accessed after a certain period of time to use for any purpose.  Variable universal life insurance is like universal life but allows you to invest your accumulated cash value in various sub-accounts.  Universal life and Variable universal life insurance offer flexibility which can be more beneficial depending on your circumstances.

Whole life insurance have premiums that are unlikely to change during the insured person’s lifetime and has a guaranteed cash value feature that grows and is called the accumulated cash value.  The cash value can be used as part of your financial plan and/or retirement plan.  Withdrawals or borrowings against the cash value can help you be tax efficient with your financial plan or retirement plan.

You do not have to choose one type of life insurance and can mix different types to meet different goals.