Term Insurance vs Permanent Insurance

Term Insurance vs Permanent Insurance

What is the difference between term life insurance and permanent life insurance? What policy best fits me and my family? These are the most frequent questions someone will have when comparing term insurance vs permanent insurance. Customers can look at term life insurance as renting an apartment or leasing a vehicle. You pay a set amount every year and receive a level death benefit for the period you select. Those who are looking at a permanent option can view it as buying a house. You put money into the policy and in return you receive a death benefit as well as a cash value on the policy. Let us take a deeper look into the features and benefits of both policies.


Term Life Insurance

  •  Provides a level death benefit with a level premium for a certain period of time.
  •  Great option for those only needing temporary coverage.
  •  Perfect for new homeowners to protect their mortgage.
  •  Most policies are convertible to a permanent option.

Permanent Life Insurance

  •  Provides a death benefit for a level premium for the rest of your life.
  • These policies provide benefits you can use while the policy is in force.
  •  Benefits include a cash value that you can borrow against and repay as you pay the premiums.
  • Cash value increases over time as you pay the premiums.
  • As clients pay the premiums the cash value is adding to the death benefit for an increasing value over time.
  • Policies provide a cash surrender value. Cash surrender value increases the longer you have had the policy. If someone needs to cancel their policy they are able to get the cash value of the policy.

Which policy should I choose?

When comparing term insurance vs permanent insurance you will need to figure out your current life insurance needs. The permanent options are always the best. These policies will always pay out as long as your premiums are current. Term options are a great way to cover a temporary need. These options will provide high death benefits for great premiums.