What Is Permanent Life Insurance And How Does It Work? 
There are two basic types of life insurance : term and permanent . Term is for temporary needs and covers a specific length of time - typically up to 30 years . Permanent or cash value life insurance is designed to last for a lifetime and , provided the required premiums are paid , can not be outlived . Permanent policies comes in different forms such as whole life or universal life . Whole life features fixed premiums that must be paid until maturity , often age 100 . Universal Life is also known as Flexible Premium Adjustable Life - this is the official name of this type of product . It describes in a simple way how the product works . Premiums are flexible because that can be adjusted upward or downward . You can also skip premiums . You also have a choice of level or increasing death benefit which describes the adjustable nature of the product . Universal life builds cash value that can grow based on a stated fixed interest rate , which may vary over time , but which will never be less than a guaranteed minimum interest rate . Policy costs for administrative expenses and cost of insurance are deducted from the cash value monthly.Universal life is best suited to satisfy the longer-term needs of policyowners who want premium flexibility and cash value accumulations that reflect current fixed interest rate returns , with a guaranteed minimum interest rate . Permanent policies have variations with features and flexibility for a wide range of planning situations . Consult with a life insurance professional to design the best plan to meet your specific needs . 