Term vs Permanent Life Insurance Term Life Insurance and Permanent Life Insurance are two primary types of life insurance, each with distinct features and purposes. Here's an overview of the key differences between term and permanent life insurance:

**1. Policy Duration:

• Term Life Insurance: Provides coverage for a specified term, such as 10, 20, or 30 years. If the insured dies within the term, the death benefit is paid out to the beneficiaries. If the term expires and the insured is still alive, there is no payout, and coverage typically needs to be renewed or converted to a permanent policy.

• Permanent Life Insurance: Offers coverage for the entire lifetime of the insured. As long as premiums are paid, the policy remains in force, and the death benefit is paid out to beneficiaries when the insured passes away.

**2. Premiums:

• Term Life Insurance: Generally, premiums are lower compared to permanent life insurance for the same coverage amount. However, they may increase if the policy is renewed after the initial term, especially as the insured ages.

• Permanent Life Insurance: Premiums are typically higher than those for term life insurance but remain level throughout the life of the policy. A portion of the premium is often set aside to accumulate cash value over time.

**3. Cash Value:

• Term Life Insurance: Does not accumulate cash value. If the insured outlives the term, there is no return on premiums paid.

• Permanent Life Insurance: Builds cash value over time, which can be accessed by the policyholder through loans or withdrawals. The cash value component provides a form of savings or investment within the policy.

**4. Death Benefit:

• Term Life Insurance: Pays out a death benefit only if the insured passes away during the term of the policy.

• Permanent Life Insurance: Guarantees a death benefit regardless of when the insured dies, as long as the policy is in force.

**5. Renewability and Convertibility:

• Term Life Insurance: Policies are often renewable but at higher premiums, especially as the insured ages. Some term policies also offer the option to convert to a permanent policy without a new medical exam.

• Permanent Life Insurance: No need for renewal, and the policy remains in force as long as premiums are paid. There is no need for conversion because it is already a permanent policy.

**6. Purpose:

• Term Life Insurance: Often chosen for temporary needs, such as providing financial protection during the years when dependents are young or covering a mortgage.

• Permanent Life Insurance: Suitable for long-term financial planning, estate planning, or leaving a legacy, as it provides coverage for the entire lifetime of the insured.

The choice between term and permanent life insurance depends on individual financial goals, budget, and the specific needs of the policyholder. Some individuals may choose a combination of both types of policies to address different aspects of their financial planning. Additionally there are a vairty of Insurance Riders that can be added to the policies for additional Insurance coverage and needs.

To learn more and disucss if Term, Permanet or a Combination of both is right for you reach out to me. I am happy to discuss your finaical needs and find a coverage solution that is best for you. As an Independant broker I have access to numerous Insurance Companies to find you the best policy at the most competivive price.

Have you been denied Insurance coverage in the past or think you may be hard to insure due to any pre-existing medical conditions? Reach out to me as there may be options to meet your Insurance needs.