Term Life vs Permanent Life Insurance

Life insurance is an important tool to protect your family and loved ones who depend on you financially.  But when you buy life insurance, should you choose a term or permanent policy? Here's what you should know:

Term life insurance is coverage that gives your beneficiaries a payout if your death occurs during a certain period of time, such as 10 or 20 years There are different kinds of term life insurance policies, such as:

-An annual renewable term, which can be renewed each year, but rates do go up as you age.

- A level premium term, which gives you coverage for the term you set at a fixed cost per year.

Term life insurance is less expensive than a permanent life policy, , but won't cover you if your death occurs after the term is over

If you want to make sure that your dependents are protected if something happens to you during your working years, term life insurance is a good option.

Permanent life insurance covers you for your entire life, no matter when you die. 

The policy includes both a  cash value and  a death benefit. That means you can withdraw or borrow against the cash value that you accrue.

But premiums for permanent policies are much higher than for term life insurance.

Expert Blog

Laura Adams is a personal finance expert, award-winning author, and consumer advocate. As Senior Insurance Analyst, she represents insuranceQuotes in the media and works to make sure consumers protect their financial futures by having the right kinds of insurance.

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