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Term Life Is One Of the Two Types of Life Insurance

There are two types of life insurance policies that you’ve probably heard about — one is term life insurance, and the other is permanent. When you buy life insurance coverage, you’ll most likely choose one of these two types, so it’s important you understand the structure, cost and duration of each type of life insurance before buying.

Term Life Insurance Policies

Term life insurance pays a predetermined sum of money to the policy beneficiary if the insured person dies during a specified time period — or term — of the policy. Terms can be 1, 5, 10 or 20 years — with the maximum term period usually being 30 years. This type of life insurance coverage is ideal for people who need protection for a certain period of time.

Premiums for term life insurance usually are lower than those of a whole life insurance policy. Term policies have no savings element or cash value component, and the premium rates may fluctuate depending on the type of term insurance you choose.

Permanent (Whole) Life Insurance Coverage

Permanent life insurance provides coverage for your entire lifetime, as long as the premiums are paid on time. Most permanent policies offer a savings or investment component along with the insurance coverage.

The premium rate is level throughout your payment period, and the extra premium you pay builds a cash value reserve. In turn, the premiums may be higher than those of term life insurance policies.

Term vs. Whole Life Insurance

When it comes to choosing one of the two types of life insurance, you may want to consider the cost. Other factors to consider are whether you really need lifelong protection, and if you can afford the higher premiums that whole life will cost you.

Finding the Right Life Insurance Policy for You

With such a wide variety of products on the market now, having someone experienced to navigate the two types of life insurance can make finding coverage that fits your needs and budget much easier.

Connect with a licensed term life insurance today. Reach out to us online or by calling 1-855-303-4640. We’ll help you determine which type of policy fits your needs best, get together available quotes and choose your coverage.





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*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.

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