Difference Between Permanent Insurance and Term Insurance?

There are several differences between permanent and term insurance policies.

First, a permanent life insurance plans provides lifetime protection, while a term policy offers temporary coverage.

Next, a permanent policy builds cash value inside the policy over time from which you may take a loan, while a term policy has no cash value, just a death benefit.

However, permanent insurance costs up to 5-10 times more for the same amount of life insurance protection compared to term life insurance.

If you need life insurance for a period of 30 years or less, then term life offers a much more affordable policy.

But, if you need life insurance guaranteed to last your entire life, then permanent life insurance may be a good option.

Learn more about the difference between permanent insurance and term insurance.