Permanent Life Insurance
Definition
- Life insurance where a death benefit is guaranteed to be paid out at the end of the policy. Permanent life insurance is an umbrella term encompassing both whole and universal life insurance policies. Unlike temporary life insurance policies (term life insurance policies) where life insurance is purchased for a finite period of time, permanent life insurance policies are bought for life and are primarily used for estate planning.
Synonyms
fixed life insurance, continual life insurance, immutable life insurance, perpetual life insurance
Related Terms and Acronyms
- Cash Surrender Value (CSV) — Acronym, Important,
- The liquid value of an insurance policy if the policyholder voluntarily cancels the policy before maturity or an insured event.
- Convertible Life Insurance — Definition,
- A type of term life insurance policy that has the option to be converted into a permanent life insurance policy such as whole or universal life insurance.
- Death Benefit (DB) — Acronym, Very Important,
- A payment or series of payments made to the beneficiaries of a life insurance policy.
➥ An amount paid to a beneficiary in a life linsurance policy. - Group Life Insurance — Definition,
- Life insurance offered to a large number of people belonging to an organization, usually as part of a benefit package.
- Life Insurance — Definition, Very Important,
- An arrangement where an insurer agrees to pay a benefit to one or more beneficiaries in the event of the policyholder's death.
➥ CanEquity offers life insurance. - Single-Premium Life Insurance — Definition,
- Life insurance where all premiums are paid up front in a single lump sum payment.
- Surrender Charge — Definition,
- A charge levied when a life insurance policyholder cancels his or her policy.
- Surrender Rights — Definition,
- The contractual right for a life insurance or annuity policyholder to cancel his or her policy.
- Vanishing Premium Policy — Definition,
- A life insurance policy where policy dividends are used to pay the policy's premiums.
- Whole Life Insurance — Definition,
- Permanent life insurance with level premiums for the policyholder's entire lifetime.
- With-Profits Policy — Definition,
- Insurance that pays the policyholder a portion of the insurer's profits.
