Term or permanent life insurance? A plain comparison
Two ways to protect the people who depend on you, and how to tell which one fits your family.
Life insurance pays money to the people you choose if you die while the policy is in force. The two main types work very differently.
Term life insurance
Covers you for a set number of years, often 10, 20 or 30. If you die during the term, your beneficiaries receive the death benefit. When the term ends, the coverage ends.
- The lowest cost for the most coverage
- A good fit for the years with a mortgage or young children
- No cash value
Permanent life insurance
Covers you for life as long as the premiums are paid. Whole life and universal life are the most common kinds. Part of each premium builds cash value that you can borrow against.
- Higher premiums
- Coverage that does not expire
- Cash value that grows over time
How to choose
Start with the question the insurance needs to answer. If it is “who pays the mortgage and the school if I am gone,” term usually fits. If you need lifelong coverage, estate planning or protection for a business, permanent coverage may make sense.
We review your situation and compare options with you before you choose a policy.