What Is Permanent Life Insurance And How Does It Work? 
There are two categories of life insurance : term and permanent . Term insurance is designed to stay the same price for a set number of years , then it either ends or the price goes way up . Permanent insurance is designed to stay in effect for a lifetime . Permanent insurance can be paid on a schedule over a lifetime , or it can be paid in a lump sum , or for a set number of years -LRB- after which the policy is paid up and still in force even though no more premiums are paid -RRB- . Permanent insurance policies include Whole and Universal Life , and variations thereof . The way the policy works depends on which type of policy you pick , but they all have a death benefit and cash value . Whole life will always cover you for a lifetime , but you must get a guaranteed no lapse universal life policy to make sure UL is truly permanent coverage . 