Advantages of Permanent Insurance

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As long as the premiums are paid, protection is guaranteed for life.

Premium costs can be fixed or flexible to meet personal financial needs.

The policy accumulates a cash value that you can borrow against. Loans must be paid back with interest or your beneficiaries will receive a reduced death benefit. You can borrow against the policy's cash value to pay premiums or use the cash value to provide paid-up insurance.

The policy's cash value can be surrendered for cash, in part or in total, or can be converted into an annuity.

A provision (often referred to as a "rider") can be added to a policy that gives you the option to purchase additional insurance without taking a medical exam or having to furnish evidence of insurability.

Disadvantages of Permanent Insurance

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Required premium levels may make it hard to buy enough protection.

It may be more costly than term insurance if you do not keep it very long.

The cash value of a variable life policy is not guaranteed, and the policyholder bears the risk. If the specified investments perform poorly, cash values and benefits will drop.