There are four main classifications of permanent insurance.  Each of these insurance policies has a good number of variations. 

Whole permanent life insurance

This is also called ordinary life insurance since this is the most common and the least complex of all permanent insurance types.  It has a specific amount of benefit (the face amount) that is determined from the outset.  There is also a set amount of insurance premiums that the policyholder has to continuously pay if he or she wants the permanent insurance policy to remain enforced.  There will be a savings amount or cash value depending on the dividends paid by the insurance company, but this is also subject to the financial climate.

Universal or adjustable permanent life insurance

This type of permanent life insurance policy has an adjustable face amount.  This means the policyholder can decide to increase his coverage benefit later on.  But this depends on the pending approval from the insurance company that will screen him or her for medical conditions and other insurability elements.  Moreover, the policyholder can actually pay whatever premiums and whenever he or she wants to pay as long as the premium payments do not fall short of the minimum premium requirement.

Variable permanent life insurance

This type of permanent insurance policy has a savings account component aside from the face amount or death benefit.  The value saved within the policy can be used to finance high-yield investment opportunities like money market funds, stocks, and also bonds.  In this case, you get maximum opportunity and potential from your policy’s cash value.  However, as there are higher risks involved in such investment opportunities, the policyholder who takes advantage of this feature may be risking the policy’s face amount and policy value.

Variable-universal permanent life insurance

This type of insurance is essentially a combination of the universal and the variable types.  In this type of insurance policy, the policyholder has a savings account with an investment option, and he or she can also adjust the premium payments and face amount benefit later on.