Unlike life insurance, permanent life insurance do not have expired time and also combine death benefit with savings portion. It accumulates a cash value, the policy owner can withdrawing money, borrowing cash value or cancelling the policy and receive the surrender value. The insurer usually apply waiting period after policy purchase to accumulate sufficient cash value when insured want to borrow saving portions of the permanent insurance. Permanent life insurance policy holder get tax-deferred benefit which means they won't pay taxes on any earnings in the policy as long as the policy still active. Policy loans generally are not considered as a taxable income. Permanent insurance have three basic types: whole life, universal life and endowment.

Whole Life

Whole life is a life insurance policy which is guaranteed to remain in force for the insured's entire lifetime, provided required premiums are paid, or to the maturity date. Since whole life policies are guaranteed to remain in force, the premiums usually much higher than those life insurance where the premium is fixed only for a limited term. The premiums are fixed, based on age of issue and do not increase with age. 

Whole life insurance have both pros and cons depends on each individuals. People think that whole life insurance is worthwhile due to indeterminate length of time and also including funeral expenses, estate planning, surviving spouse income and supplemental retirement income as the benefits. On 

the other side, people think whole life insurance is too expensive because of relatively high premiums, making them having large debts. Families with large needs and limited income also find this whole life insurance very expensive. 

Universal Life

Universal life insurance combine permanent insurance coverage with premium payment flexibility and potential cash value. Interest-sensitive (traditional fixed universal life insurance), variable universal life, guaranteed death benefit, and equity-indexed universal life insurance are several type of universal life insurance policies. It also have cash values, both premium and death benefit are flexible. 

Flexible death benefit means the insured can choose to decrease or increasing the death benefit. Increasing require new underwriting. Another feature is the ability to choose option A or option B. Option A referred to level death benefit; death benefits remain level for the life of the insured and premiums are lower. Option B is the insured pay the policy's cash value; a face amount plus earnings or interest. The cash value growth give impact to the death benefits. Option B have higher premium than option A. 

Endowment

Endowment policy is a life insurance contract designed to pay a lump sum after a specific term (maturity) or on death. Endowment life insurance policy often dressed up as a college savings plan. Typical maturities are ten, fifteen, twenty years or up to certain age limit. After certain monthly contributions, you are guaranteed a certain endowment (payout) when the policy mature. If the policy owners die before the policy mature, the beneficiaries will receive death benefit and will have the anticipated money.