While there are many types of life insurance policies out there, the two most common alternatives are term life insurance and permanent life insurance. In this post, we outline the differences between these two forms of life insurance to help you make an informed decision.
What Is Term Life Insurance?
This is the most basic type of life insurance and also the most popular.
What makes term life insurance so attractive? For one thing, this type of policy tends to be less expensive than permanent life insurance, and consumers love to save.
Plus, term life insurance is flexible. As the name suggests, term life insurance covers you for a predetermined length of time (usually between 10 to 30 years) so you can purchase coverage only for the time you need it, for example, while you pay off your mortgage.
Simply put, term life insurance is easy to understand, flexible, and affordable. It’s easy to see why it’s so popular!
What Is Permanent Life Insurance?
Unlike term life insurance, permanent life insurance covers you for life.
While this sounds great in theory, there are some caveats to consider. First off, since permanent life insurance is a more complex product, it usually costs more than term life insurance.
On the other hand, permanent life insurance offers benefits you don’t get with term insurance. Many permanent life insurance policies include a savings vehicle called cash value.
The cash value of a permanent life insurance grows over time. You can use that money in a variety of ways, including borrowing against it or using it to pay your premiums if you are going through a cash crunch.
Term Life Insurance vs. Permanent Life Insurance
Now that you have a clear picture of the differences between term and permanent life insurance, here’s a quick list with questions that will make your decision even easier:
- Looking for an affordable, no-frills policy? Choose term life insurance.
- Do you want lifetime coverage? Choose permanent life insurance.
- Are you interested in a policy that features a savings component that grows over time? Choose permanent life insurance.
- Are you OK with having coverage for a preset period of time only? Choose term life insurance.
If you need additional help making sense of your life insurance options, contact the experts at B Bee Insurance. We’ll be glad to answer all your questions!
Need Life Insurance in Houston, Texas? BZ Bee Is Here to Help!
Whether you need insurance only for a set number of years or want lifelong coverage, the experts at BZ Bee insurance are here to help you find the policy that makes sense for you.
We are located in Houston, Texas, and serve clients all over the Lone Star state. To get a free quote, just contact us by email (ayalamariaeugenia@yahoo.com) or telephone (832-729-8114), or fill out the contact form on this website.
