Permanent life insurance, also known as whole life, interest sensitive
whole life and universal life insurance, is designed to meet the long term life
insurance needs of an individual or party. The premiums usually remain level
throughout the insured's life within a policy that will build-up cash value. You
can borrow against the cash value or receive a lump sum for cashing in the
policy. Permanent life insurance can perform multiple tasks for the insured,
such as protect your family in the unfortunate event of a premature death and
build value on a tax-deferred basis. In addition, if structured properly, you
may be allowed to pass certain assets to your beneficiaries without incurring any income or federal estate
taxes.
