What typically characterizes permanent life insurance policies?

Permanent life insurance policies are characterized by their lifelong coverage as long as the required premiums are paid. This means that the policy does not expire after a specific term, which is a fundamental distinction from term life insurance. With permanent life insurance, policyholders can provide a death benefit to their beneficiaries regardless of when they pass away, as long as the premiums are maintained.

Additionally, permanent life insurance often builds cash value over time, which can be accessed or borrowed against by the policyholder. This cash value component is one reason many individuals consider permanent life insurance over term policies. The ongoing premium payments contribute to this cash value and ensure the policy remains in force without an end date, offering continuous protection.

This view of longevity and consistent coverage aligns with the characteristics typically associated with permanent life insurance, highlighting its distinction from other types of policies.