Term vs. Permanent Life Insurance

When shopping for a life insurance policy, you will quickly find there are many from which to choose. Different insurance companies often offer rates that differ greatly, and it pays to shop carefully for the lowest premiums, excellent customer service, and a strong financial reputation.

Term Life Insurance

Term Life Insurance is a simple form of life insurance developed to offer temporary protection to those on a limited budget. Term life insurance can be purchased in large amounts and, compared to permanent life insurance, has relatively low premiums. For this reason it is well-suited to meet short-term goals such as paying off a mortgage or to simply provide extra protection for your children. The most common terms are 5, 10, 15, 20, 25, 30, and sometimes 35 years

Permanent Life Insurance

Permanent life insurance is where the policy remains in effect for the insured’s lifetime. A payout is administered at the policy’s end and it accrues cash value. Permanent life insurance offers an advantage over term-life, because it essentially acts as a savings account from which you can cash in the policy or borrow against it.

Term vs. Permanent

Compared to term, permanent life insurance is more expensive, because some of the money you’re paying in premiums goes into a savings account. As you pay into the policy, it earns interest, pays dividends, or both. Premiums remain steady during the policy, as opposed to term policies, in which premiums increase.

Gains you make on the policy are tax-deferred until you cash the policy out. Once you die, the benefit is often paid tax-free to the beneficiary.

So what are you waiting for? InsuranceUSA.com is here to help you find the term life insurance policy that best fits you and your personal situation, while still remaining affordable. Get started now and sleep well at night knowing your family and loved ones will be provided for, no matter what happens!