What Are The Two Different Types Of Life Insurance?

There are two basic types of life insurance policies: Term and Permanent.

Term life insurance is life insurance that covered your temporary needs of 30 years or less. It costs a lot less than permanent life insurance because it expires at the end of your term leaving you with no coverage unless you die during the term of your policy.

Whereas, permanent life insurance provides lifetime protection and may build up cash value inside the policy from which you may take a loan.

Your rate you pay for the life insurance coverage for a term policy remains the same for the duration of your term, while your rate remains level for your entire lifetime with permanent life insurance.

Basically, if you need the lowest priced life insurance for a period of 30 years or less, term life can accomplish the goal. If you need guaranteed lifetime protection, permanent life insurance may be a good option.

Here's how you can compare the advantages and disadvantages of term life insurance vs permanent life insurance.