Permanent vs. Term Life Insurance

“Which one is better for you?”

If you are trying to choose between permanent vs. term life insurance and are being pulled in different directions; just remember that in the end, it’s really up to you.

No one can really tell you that one is better than the other, so if someone does please proceed with caution!

The choice between the two policies is a personal one and depends on your own individual needs. Believe it or not, each policy has its uses and the one you need depends on what kind of coverage you want for yourself and your family.

Young Family Life insurance

If you have a young, growing family and you really only want something temporary ( say for about 20 years) well then, term life insurance may be more suitable than the alternative.

And why is that?

One of the main reasons that people will purchase term life is because it is very inexpensive and more affordable for either a young professional (maybe one who is just starting a career) or someone who has a young and growing family.

So let’s just say that if you have a young family and want to protect them, and you know that in say 20 years, your youngest child will be out of the house and by then able to care for his or herself.

You want life insurance but you feel that you won’t need it once your youngest child is all grown up! So you decide to opt for term life insurance for the desired “term.”

Read more about term life, and also check out how it compares to whole life insurance as well as price wise!

Now, let’s picture another scenario.

Life insurance for the long haul

Let’s say that you may still have a young family, however, you have a disabled child and you know that your child may never be able to care for him or herself.

In this case you’d rather opt for something long term, because when you die (either tomorrow or 50 years from now) who will take care of your child?

This example is obviously pretty extreme but check out some of the top reasons to purchase life insurance and you’ll realize that it’s a great financial planning tool.

What really differentiates permanent vs. term life insurance is that permanent life insurance (unlike term) will never expire. It also has an important feature touted by many agents which is called cash value.

Cash value is basically a savings element which will invest a portion of your premiums each month.As you can see, in addition to this savings element you also have coverage until your old age, that is, as long as you keep the policy in force by paying your monthly premiums.

Learn more about cash value and some of its uses.

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