What is the primary purpose of permanent insurance?

The primary purpose of permanent insurance is to provide lifetime coverage. This type of insurance, unlike term insurance which offers coverage for a limited period, is designed to last for the insured's entire lifetime as long as premiums are paid. Permanent insurance often builds cash value over time, which can be borrowed against or withdrawn under certain conditions. This feature is beneficial for long-term financial planning, as it provides not only a death benefit but also a savings component that can contribute to the policyholder’s financial needs during their lifetime.

In contrast, temporary coverage options focus on short-term needs, which is why they do not fulfill the primary purpose of permanent insurance. Options that indicate limited or specific timeframes do not align with the longstanding security that permanent insurance is meant to provide.