Term vs. Permanent Insurance

What’s the difference between Term and Permanent Insurance?

  • Coverage Length

    Term Insurance provides coverage for a specific period, 10, 20 or 30 years and is renewed that time is up.

    Permanent insurance is designed to provide lifelong coverage.

  • Cost of Insurance

    Typically, term premiums are less than permanent premiums, but term premiums increase at each renewal while permanent premiums remains the same.

  • Cash Value

    Permanent Insurance has a savings component called cash value. The cash value grows as you pay into the policy, you can choose to cash in or borrow against the permanent policy.

    Term insurance does not have a savings component.

  • Convertible

    Term policies can be converted to a permanent policy.

  • Death Benefit

    Term and Permanent life insurance provides a death benefit to your beneficiary as long as the policy is in force.