difference between term and permanent life insurance

The main difference between term and permanent life insurance is the duration of the policy. Term life insurance policies provide coverage for a specific period, usually between 10 and 30 years, while permanent life insurance policies provide coverage for the entire life of the insured person 123.

Term life insurance policies are generally less expensive than permanent life insurance policies because they only provide coverage for a limited period 1. Permanent life insurance policies, on the other hand, are more expensive because they provide coverage for the entire life of the insured person and often include a savings component 14.

Another difference between term and permanent life insurance is the way the premiums are structured. Term life insurance premiums are typically level and remain the same throughout the policy’s term, while permanent life insurance premiums are often higher initially but remain level throughout the policy’s lifetime 13.

It’s important to consider your financial needs and goals when deciding between term and permanent life insurance. If you need coverage for a specific period, such as until your children are grown or your mortgage is paid off, term life insurance may be a good option. If you want coverage for your entire life and are willing to pay higher premiums, permanent life insurance may be a better choice 123.

I hope this helps! Let me know if you have any other questions.

1: Forbes Advisor. 2: Northwestern Mutual. 3: MoneyGeek. 4: Investopedia.

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