What type of policy provides permanent protection?
Whole life
A type of policy that provides permanent protection is a whole life insurance policy. Unlike term life insurance policies that provide coverage for a specific period of time, typically 10, 20, or 30 years, whole life insurance provides coverage for the entire lifetime of the insured as long as the premiums are paid.
Whole life insurance policies offer both a death benefit and a cash value component that accumulates over time. The death benefit is the amount of money paid out to the beneficiaries when the insured passes away. The cash value component is a tax-deferred savings account that grows over time allowing policyholders to borrow against it or withdraw funds in case of an emergency.
Whole life insurance policies are also guaranteed to have a fixed premium, which means the premium will never increase as long as the payments are made on time. This makes whole life insurance a reliable option for those seeking permanent protection.
More Answers:
Professional Appraisals: Understanding the Purpose, Process, and BenefitsUnderstanding Non-Renewable Policies: Key Considerations for Policyholders
Understanding Exclusion Ratio in Annuities for Tax-Free Income Benefit Payments