Why might someone choose permanent life insurance over term life insurance?

Choosing permanent life insurance over term life insurance is often due to its ability to build cash value. Permanent life insurance, such as whole life or universal life, involves a savings component that accumulates cash value over time. This cash value can grow on a tax-deferred basis and can be accessed by the policyholder through withdrawals or loans, providing financial flexibility that term life insurance does not offer.

In contrast, term life insurance is designed to provide coverage for a specific period, and it does not accumulate any cash value. Many individuals find the cash value component of permanent insurance appealing, as it can serve as an additional financial resource in the future. Additionally, permanent life insurance typically remains in force for the insured's lifetime as long as premiums are paid, which contrasts with the temporary nature of term coverage. This long-term security combined with the potential for savings accumulation is a significant reason someone might prefer permanent coverage.