The key difference between term and permanent life insurance lies in their duration and features. Term life insurance provides coverage for a specified term (e.g., 20 years) and pays a death benefit if the insured person dies during that term. It is affordable but has no cash value. In contrast, permanent life insurance (e.g., whole life or universal life) offers lifelong coverage and includes a cash value component that can grow over time. Permanent insurance is more expensive but can serve as an investment vehicle.

It also allows for cash value access and can provide estate planning benefits, while term insurance is designed solely for temporary protection.

Permanent life insurance policies, such as whole life and universal life, offer several key features:
1. Lifelong Coverage: These policies provide coverage for the entirety of the insured's life, as long as premiums are paid.
2. Cash Value: Permanent policies include a cash value component that accumulates over time. Policyholders can access this cash value, which can serve as a savings or investment vehicle.
3. Premiums: Premiums are typically higher than term life insurance but remain level throughout the policy's duration.
4. Death Benefit: A tax-free death benefit is paid to beneficiaries upon the insured's passing.
5. Flexibility: Policyholders can adjust premium payments and death benefit amounts within certain limits.
6. Loan Provision: Policyholders can take out loans against the cash value, with interest.
7. Dividends: Some whole life policies may pay dividends, providing potential additional income or premium reduction.
8. Estate Planning: Permanent life insurance can play a role in estate planning and wealth transfer due to lifelong coverage and tax benefits.

Whole life insurance premiums are generally not tax-deductible for individuals. Premiums paid for personal life insurance policies, including whole life insurance, are considered a personal expense and are not eligible for tax deductions. However, there are specific situations in which premium payments for life insurance may be tax-deductible, such as when the insurance is related to a business or used for estate planning purposes. Business-owned life insurance (BOLI) premiums can be deductible under certain circumstances, and estate planning strategies involving life insurance may have tax implications. It's essential to consult with a tax professional or financial advisor for guidance on how life insurance premiums may affect your individual tax situation.