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Variable universal life is also considered to a type of permanent life insurance, because the death benefit will be paid if the insured dies any time up until the maturity age (typically 100) as long as there is sufficient cash value to pay the costs of insurance in the policy. This is contrasted with term life insurance that provides coverage for only a specific period of time (the 'term' in question). Studies by the life insurance industry show that in term life insurance policies, the death benefit is paid less than 3% of the time. Therefore people that prefer not to pay for something they are not likely to get any benefit out of, are drawn towards permanent types of life insurance.
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