What is a primary advantage of permanent life insurance over term insurance?

Permanent life insurance is distinguished from term insurance primarily by its ability to accumulate cash value over time. This cash value component is a significant advantage as it acts as a savings or investment feature, growing on a tax-deferred basis. The policyholder can borrow against this cash value or withdraw it, which can provide financial flexibility for various needs, such as funding education, purchasing a home, or supplementing retirement income.

In contrast, term insurance typically provides a temporary death benefit without any cash accumulation component. While term insurance may have lower premiums initially, it does not offer the long-term financial growth or benefits that permanent life insurance provides. Additionally, the death benefit in permanent life insurance is guaranteed for the life of the insured, as long as premiums are paid, rather than being limited to a fixed period as with term policies. This attribute adds a layer of security and long-term planning potential that is not available with term insurance.