In life insurance, what does the term "permanent insurance" typically mean?

Permanent insurance in life insurance refers to a type of policy that provides coverage for the policyholder's entire lifetime, as long as the premiums are paid. This type of insurance is designed to remain in force throughout the individual’s life, which makes it distinct from term insurance that only provides coverage for a specified period.

Permanent insurance often includes features such as cash value accumulation, which allows policyholders to build savings over time that can be borrowed against or withdrawn. This distinguishes it from other forms of insurance that may only provide a death benefit without a savings component or limited duration.

By understanding that permanent insurance is designed to last a lifetime, it becomes clear why this choice accurately reflects its definition, emphasizing the long-term security and potential financial planning benefits it offers to individuals and their beneficiaries.