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Ask an Agent: What is Permanent Life Insurance?

Published: July 2016

Permanent life insurance may help replace your income if you pass away. This type of life insurance typically lasts as long as you live, provided you continue to pay the premiums.

In this video, Allstate agency owner Erik Larson explains permanent life insurance. Telling the story of one Allstate customer, he explains how having life insurance in place helped a family cope with the sudden, tragic passing of a family member.

Video Transcript

(Voiceover):Hi, I'm Erik Larson. I'm an Allstate agency owner in Tacoma, Washington. I'm here to talk about permanent life insurance.

Permanent insurance offers lifelong protection -- as long as premiums are paid, coverage lasts as long as you live.

If you pass away, the death benefit from a life insurance policy may help replace your income. In this way, life insurance can serve as a financial safety net for your family.

There's a customer who I've been working with for 19 years now. When she first came to me, she was single and renting. Over time, she purchased her own place, got married, and had kids, so her insurance needs kept evolving.

Over the years we helped her arrange life insurance for her and her husband. She started out with a term policy, which she later converted to a permanent policy. Her husband purchased his own permanent life insurance.

Neither expected to have to rely on their life insurance, particularly while they were raising their family. But then, her husband passed away very suddenly. He was just 48 years old.

Even during such a difficult time, the wife had to deal with immediate concerns, such as the funeral and its expenses. But she also had to think long-term about supporting their two children and paying the mortgage on her income alone.

The proceeds from her husband's life insurance policy helped. Having those funds meant she didn't have to make any rushed financial decisions. She didn't have to sell assets or go back to work before she was ready. She could spend some time with her kids, and take some time to grieve.

In a really difficult period, having that financial safety net really helped her and her kids.


An Allstate agent can answer coverage questions and help you find ways to protect what matters most.

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This content is for informational purposes only and may not be applicable to all situations.

Life insurance offered through Allstate Life Ins. Co. & Allstate Assurance Co., 3075 Sanders Rd, Northbrook IL 60062; American Heritage Life Ins. Co., 1776 American Heritage Life Dr., Jacksonville FL 32224. In New York, life insurance offered through Allstate Life Insurance Company of New York, Hauppauge NY. ©2020 Allstate Insurance Company, Northbrook, IL.
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