Permanent life insurance gives you coverage throughout your lifetime. Your survivors will receive a tax free lump sum payment if you die at any time while your insurance policy is in effect.
Permanent life insurance policies build up a cash value. This means you’d get a cash value back (less than the amount you paid in premiums for the insurance costs) if you cancel/ surrender your policy.
You may be able to take out a policy loan or use your life insurance policy as collateral for a loan. If you borrow using your cash value and don’t repay the loan, it may reduce the amount of money your beneficiary will receive or that you may get back if you cancel.
There are two formats of the permanent life insurance policies: