If kept long enough, it is guaranteed to pay out to your beneficiaries. Permanent life policies offer death benefits and a “savings account” (also called “cash value”) so that if you live, you get back at least some of the amount you spent on your premium, if not more. You get this money back either by cashing in the policy or by borrowing against it. Look at permanent life insurance as a forced savings account for life.
As you might expect, permanent life insurance premiums are more expensive than term premiums because some of your premium dollars are put into a savings program. The longer the policy has been in force, the higher the cash value, because more money has been paid in and the cash value has earned interest, dividends or both.
The decision on whether term or permanent life insurance will be best for you is a big one. Your licensed insurance broker, like Smart Health, Inc., is trained in guiding you towards the best decision. There are even many cases that a combination of both temporary and permanent life insurance makes the most sense.