Permanent life insurance coverage is the type of life insurance that may build up some cash value inside the policy over time.

With permanent life insurance, most of the premium ago toward the life insurance coverage, but a portion builds up inside the policy that may be used in the future for a loan, if needed.

Some life insurance companies allow the policy holders to borrow up to 80% of the cash value from their permanent life insurance policy. You pay the loan back with interest which goes back into your policy. If you do not pay back the loan, it may affect the amount of life insurance coverage you have.