Although not an investment, it allows one to purchase a large block of dollars for a smaller premium. The benefits received from this type of insurance provides the funds that can help keep a family solvent, a business operating, pay off debts, fund a charitable organization or preserve estates, to name a few of its uses. Term insurance has an initially lower premium, a level death benefit, and is most often purchased for short-term needs.
Permanent insurance is purchased to remain in force for the insured's entire life.
Although the premiums are initially higher than term, they will remain level and ultimately be less expensive than those of the term insurance. Disability Insurance is designed to protect earned income when the insured is unable to work due to a disabling condition. Statistically, by age 65, someone is more likely to become disabled, than to die. It's an interesting fact that more money is spent protecting someone's home and car, but not the income that purchases those assets. This type of policy will provide the individual with a monthly benefit based on a percentage of their annual salary.