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Types Of Life Insurance Explained - Part 4: Permanent Life Insurance



In this video we’re going to look at a type of life insurance called permanent life insurance.

If you recall from our previous videos, permanent life insurance is defined by a policy that has premiums that are level for life. In contrast with term insurance which is very inexpensive now but becomes more unaffordable as we get older. Permanent insurance will be much more expensive than term insurance when you initially purchase it but because the premiums never go up they stay level and term insurance premiums do go up, over the long term permanent life insurance will actually be cheaper. Therefore permanent life insurance is appropriate for people who need life insurance whenever they pass away whether it be tomorrow or when they’re 95 years old. It’s going to be the cheapest cost over your entire lifetime.

Now there’s two different types of permanent life insurance; one is called whole life insurance the other is called universal life and in future videos we’ll delve into some idiosyncrasies of those two policies. But the thing to keep in mind is; the primary attribute you care about with permanent life insurance is that the premiums are level over your entire lifetime. That’s where permanent life insurance really shines.