What type of life insurance typically has the highest premiums?

Permanent life insurance typically has the highest premiums because it is designed to provide lifelong coverage and includes a cash value component that can grow over time. This type of policy remains in effect as long as the premiums are paid, unlike term life insurance, which covers a specified number of years and ultimately expires without any payout unless the insured passes away during the term.

The cash value element of permanent insurance allows policyholders to build savings that can be borrowed against or withdrawn, further contributing to its overall cost. The nature of providing lifelong benefits and the additional savings feature means that the premiums for permanent life insurance are generally higher than those of other types of life insurance like term or accidental death insurance, which offer limited coverage.

Additionally, substandard risk insurance typically refers to policies that are issued to individuals deemed a higher risk due to health issues or lifestyle choices. While these might have higher premiums than standard life insurance, they generally do not reach the level of premiums found in permanent life insurance policies.