Term Life Insurance Differences
Permanent life insurance also offers protection for you and your family in the event of death but unlike term life insurance, permanent insurance builds cash value during the course of coverage. The interest accumulated during the course of the policy is payable to the beneficiary at the time of death along with the death benefit. Also, permanent insurance policies are an asset against which you may borrow money.
There are provisions and restrictions for each type of permanent insurance that govern the lending against the policy but each one does build cash value. Several permanent policies also allow you to control how your premiums are invested. This offers the policy holder the option of increasing or decreasing the rate of interest accumulation.