Term vs. Permanent Insurance
What’s the difference between Term and Permanent Insurance?
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.
Typically, term premiums are less than permanent premiums, but term premiums increase at each renewal while permanent premiums remains the same.
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.
Term policies can be converted to a permanent policy.
Term and Permanent life insurance provides a death benefit to your beneficiary as long as the policy is in force.