What is a key benefit of a permanent life insurance policy compared to a term policy?

A key benefit of a permanent life insurance policy is the guaranteed lifelong coverage it provides, along with the potential for cash accumulation. Unlike term policies, which only offer coverage for a specified period, permanent life insurance remains in effect for the insured's entire lifetime, as long as the premiums are paid. This means beneficiaries will receive a death benefit whenever the policyholder passes away, making it a reliable financial protection tool.

In addition to lifelong coverage, many permanent policies include a savings component, allowing cash value to accumulate over time. This cash accumulation can be borrowed against or withdrawn, providing financial flexibility for the policyholder. This combination of lifelong coverage and cash value growth gives permanent life insurance policies a distinct advantage for individuals looking for long-term financial security and savings options.

The other options do not capture the full essence of what makes permanent life insurance unique and beneficial in comparison. Lower premiums are typically associated with term policies; straightforward underwriting processes may vary and are not necessarily exclusive to permanent policies; and while some permanent policies may not require medical exams, many do, depending on the insurer’s guidelines.