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Life insurance products provide your loved ones with a death benefit payment when you pass away. You can choose how much you want them to receive when you sign the life insurance contract. Whether they receive the money or not depends on if you die while the plan is still active.
While permanent life insurance plans are active for the insured person’s entire lifetime, term life insurance options only cover you for a set period. To learn more about the difference between permanent and term life insurance, keep reading.
What Is Life Insurance?
Life insurance is a type of insurance that covers the insured person’s life. When the insured person dies, a death benefit payment is disbursed to their beneficiaries. The policy you choose will determine how much money is given. Policy differences also dictate how long you are covered.
What Is Term Life Insurance?
Term life insurance only provides coverage for a set period of time. Therefore, term life plans tend to be relatively cheap. With a term life insurance policy, you can receive coverage that keeps you protected during set periods of your life. This option is best for people who feel their family will need help if they die soon, but not necessarily if they live through the term.
What Is Permanent Life Insurance?
Permanent life insurance lasts for the insured person’s entire lifetime. That is unless the policyholder doesn’t pay their premiums. Permanent life insurance is unique because most plans also include a cash savings component that is built up over time. This cash savings component can be used to borrow money or your can withdraw your available balance.
The Difference Between Permanent Life and Term Life
The core difference between permanent and term life plans is the amount of time you are covered. While term life plans cover you for 5, 10, 15, 20, or up to 30 years, permanent life insurance options cover you for your entire lifetime. You should also note that permanent life insurance options include a cash savings component that grows as you pay your premiums. This is not a feature of term life plans, so if you are interested in building a financial asset, permanent life insurance may be a more suitable option.
Shop For Life Insurance
If you aren’t sure whether you should purchase term life insurance or permanent life insurance, get help making the decision. By reaching out to Insured For Life today, you can cut out a lot of the time and hassle of choosing a life insurance plan. To get a free quote and consultation today, call 888-989-0079.
