The Death Benefit

  Permanent life insurance coverage, on the other hand, will last the rest of your life.

  If accumulating cash worth is important to you, consider permanent life insurance.

  However, if you're only interested in the cash value buildup, you'd be better off placing your money into a savings or investment vehicle rather than paying for the life insurance and expenses that come with a permanent policy.

  Furthermore, the cash value is not usually intended for recipients.

  Your beneficiaries receive the death benefit of the policy, not the death benefit plus cash value.

Premium

  Premiums are the funds paid for insurance by the policyholder.

  When the insured dies, the insurer must pay the death benefit if the policyholder pays the requisite premiums

  Premiums are decided in part by how likely it is that the insurer will have to pay the policy's death benefit based on the insured's life expectancy.

  Age, gender, medical history, work dangers, and high-risk hobbies are all factors that influence life expectancy.

  A portion of the premium is also used to cover the insurance company's operating costs.

  Premiums are greater for policies with larger death benefits, for people who are more at risk, and for permanent policies that accrue cash value.

The Monetary Value

  Permanent life insurance's cash value serves two functions.

  For example, the policyholder may take out a loan against the cash value of the policy and be required to pay interest on the loan principle.

  The cash value can also be used to pay premiums or acquire additional insurance.

  The cash value is a living benefit that the insurance company retains after the policyholder dies.

  Any outstanding debts against the cash value will lower the death benefit of the policy.