Permanent Life Insurance

A contract between an insurance company and a life insured, to pay a tax-free lump sum at death in exchange for a series of premium payments. They are designed to stay in force for a person’s lifetime and are suitable for people with permanent needs, such as to pay estate taxes or estate equalization in the case of business owners. There are three main types: Whole Life, Universal Life and Term to Age 100. (See also “Term Insurance”)