Permanent Life Insurance policies allow you to lock in the cost of insurance for life. This means that you will never have to worry about the price of the life insurance renewing at higher rates, like a term insurance policy would. Permanent Policies are either Universal Life or Whole Life Policies. The difference between these two policies comes down to the details of the policy and the specific needs of the individuals involved.
Within Permanent policies you can over-contribute and actually invest within the policy, allowing for tax-free growth until the money is withdrawn. There are also permanent policies that, for an extra premium, can be paid off within a certain time.
For Example: I personally have a Universal Life policy. My cost is a fixed amount per month for life. What I do is actually over-contribute, meaning that the extra money I put in the policy is invested into *segregated funds. In year 20 my policies investments will have grown to a point at which the policy can pay for itself for the rest of my life! The monthly premium will simply come out of the investment account, and the rest of the funds continue to grow as according to how I have invested it.
*Segregated Funds are investment funds offered by insurance companies. They are similar to mutual funds but offer distinct advantages: Similar to life insurance policies, segregated funds have death benefit guarantees, named beneficiaries, creditor protection, safety and security! (for more information on Segregated Funds, just ask.)
Permanent Life Insurance Policies are a great product as well. There are many options available within permanent policies that allow a client to customize a policy to their specific needs, while also budgeting that cost for life, or having it paid-up in the future! Permanent Life policies are perfect for newborns, children, and young adults because the rates are very low at the early stages of life. Ask how a policy like this can work for you!