Life & Health Insurance Practice Exam 2026 – Your All-in-One Guide to Exam Success!

The policy that lasts for the entire life of the insured, provided that premiums are continuously paid, is known as a permanent insurance policy. This type of insurance offers lifelong coverage and typically includes a cash value component that accumulates over time as part of the policy.

Unlike term insurance, which provides coverage for a specific period and does not accumulate cash value, permanent policies ensure that as long as the premiums are maintained, the insured will have coverage for their entire lifespan. Universal and variable policies are specific kinds of permanent insurance, but the overarching characteristic of lifelong coverage with paid premiums is most accurately captured under the term "permanent insurance."

This structure makes permanent policies particularly appealing for individuals looking for long-term solutions that also build value over time, allowing the policyholder flexibility in how they manage their coverage and savings components.