From Insurance Lounge

Permanent life insurance provides life-long insurance protection, provided premiums are paid, or in the case of some policies, provided the policy remains in force. With few exceptions, once you have been approved for the coverage, your policy cannot be canceled by the carrier. Regardless of your health, the insurance will remain in force.

Despite higher initial premiums, permanent life insurance can actually be less expensive than term in the long run. Some permanent policies are eligible for dividends, if and when they are declared by the insurance company. Many companies offer the option to apply current and accumulated dividend values towards payment of all or part of the premiums. So while premiums must be paid under both permanent and term insurance plans, the long-term out-of-pocket cost of permanent life insurance may be lower compared to the total cost for a term policy.

Permanent life insurance can eliminate the problem of future insurability. It does not expire after a certain period of time. It does not need to be renewed. Also, some policies contain guaranteed purchase options, which allow you to buy additional coverage at specified times, regardless of your health.

Permanent life insurance builds cash value. This amount — part of which is guaranteed under many policies — can be used in the future for any purpose you wish. If you like, you can borrow cash value for a down payment on a home, to help pay for your children’s education or to provide supplemental income for your retirement. Plus, if you stop paying premiums and surrender your policy, the guaranteed policy values are yours.