Term vs Permanent
Life Insurance
How do the numbers look?

"Term and permanent policy examples"

When trying to decide between term vs permanent life insurance, you need to consider what your needs are and also what your budget is.

If you’re a visual person, you might understand the differences between term and permanent policies if you take a look at the sample numbers below.

You can get a general overview of the main differences between Term vs Permanent Life Insurance over here.

Term life insurance vs permanent-
How do I know what my premium will be?

Everyone’s situation is unique and your individual policy and the premium you pay will reflect this. Many factors are involved that will decide how much your premiums will be… such as your age, sex, weight, health and others.

Read more about how life insurance works and how to calculate life insurance rates (or how they are calculated) here on How does life insurance work?

Permanent versus term life insurance-
How the policies differ- Let's talk numbers!

As stated above the premiums you pay will depend on many factors.

Please note that yours will be different no matter what. These are just some general examples to help you understand the differences.

Here is an example of what a 10 year life insurance term policy may look like as far as the numbers go:

Term life

Age: 29

Year	Yearly Premium	Death Benefit
1	$216 ($18.00 a month)	$200,000
2	$216	$200,000
3	$216	$200,000
4	$216	$200,000
5	$216	$200,000
6	$216	$200,000
7	$216	$200,000
8	$216	$200,000
9	$216	$200,000
10	$216	$200,000

Do you notice anything? The death benefit amount stays the same throughout the life of this particular policy. But look at how inexpensive the premium is and look at that death benefit amount! (Compare it to a permanent policy below!)

The younger you are…. The best life insurance rate you’ll get, but not to worry if.. because there is a plan for everyone.

Build cash value with Permanent Life

Here’s an example from my own permanent life policy. This one just happens to be universal which is slightly different from whole life because the death benefit can grow, with whole life your death benefit remains the same. – This is starting after the 1st year since it takes awhile to accumulate.

Permanent life

Age: 29

Note: Surrender amount is the amount you'll get if you cancel your policy.

Year	Yearly Premium	Surrender amount	Death Benefit
1	$480 ($40 a month)	0	$100,034
5	$480	0	$101,065
10	$480	$2,485	$102,101
15	$480	$6,131	$102,964
20	$480	$9,841	$103,494

Another note: Although it says my surrender value after 5 years is 0, I called my insurance company to find out and I actually now have a cash value of $200 after 10 months. This little table that my insurer provided me is just an estimate.

You will receive one as well to give you a rough estimate of the growth on your policy.

So as you can see, I’m not exactly making very much here if I decide to cancel my policy, but it does have its benefits for my particular situation (I wanted life coverage).

When buying permanent, your premiums will be more expensive but you will build cash value over time.(In most cases your beneficiary will not owe any taxes upon your death).

To leave Term vs Permanent Life Insurance and read about Taxes on life insurance policy, click here.

A good Permanent life feature is that it can either be cashed out or borrowed against. You are also locked in for the same premium for life.

Speak to an agent today about the differences between Term vs Permanent Life Insurance and shop one life insurance rate against another!

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