Permanent life insurance is also known as whole life insurance or an endowment. This policy insures the life of the insured and pays out upon completion of the policy. The policy accrues a cash value over time. This is different from term life insurance which pays out a lump sum after a predetermined period or term. Permanent life insurance policies originally had a fixed premium for the duration of the policy but consumers wanted more flexibility with their permanent life insurance policies. Consequently, universal life insurance was created. Universal life insurance policies allow their clients the flexibility to change their premiums at will, giving them control over when the premiums are paid and how much they want to pay. Obviously, this kind of flexibility will cost the consumer a bit more and the death benefit will then change according to the premiums that are paid into the policy at the time of payout.