Permanent life insurance can be useful for someone who wants to guarantee coverage for the rest of the insured person’s life. It may also help people who want to leave a lump sum to heirs or use the policy’s cash value as part of a savings or estate plan. However, permanent-policy premiums are expensive, investment fees may be high, and surrendering a policy for its cash value can involve significant fees. Some withdrawals can also be taxed as ordinary income.
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