How does permanent life insurance typically differ from term life insurance?

Permanent life insurance is distinct from term life insurance primarily because it provides coverage for the entire lifetime of the insured, as opposed to just a specified term. This means that as long as premiums are paid, the policy remains in force until the insured passes away, allowing beneficiaries to receive a death benefit regardless of when that occurs.

Additionally, permanent life insurance often includes a cash value component that grows over time, which can be borrowed against or withdrawn by the policyholder. This aspect contrasts sharply with term life insurance, which typically has no cash value and only pays out if the insured dies during the term of the policy.

The lifelong coverage aspect is significant because it offers financial security and peace of mind, knowing that the family will be protected no matter how long the insured lives. This feature of permanent insurance is why it is often used as a long-term financial planning tool.