Term Life Insurance
Term life is designed to provide a death benefit for a stated period such as 10, 20, or 30 years, assuming required premiums are paid and policy terms are met. It is commonly used for temporary needs such as income replacement while children are young or while a mortgage remains.
Permanent Life Insurance
Permanent policies are designed to remain in force longer—potentially for life—if policy requirements are satisfied. Depending on the product, they may include cash-value features, different premium structures, guarantees, or flexibility that term coverage does not provide.
Why Term Usually Costs Less Initially
Term insurance covers a defined period and generally does not build cash value, so initial premiums are often lower for the same death benefit. Permanent coverage generally costs more because it is designed for a longer duration and may include additional features.
Questions That Help Clarify the Choice
- Is the need temporary or expected to last for life?
- How important is keeping the premium low today?
- Do you want cash-value features or only death-benefit protection?
- How predictable are the premiums and guarantees?
- Would a term conversion option matter later?
It Does Not Have to Be All-or-Nothing
Some households use term coverage for large temporary needs and smaller permanent coverage for longer-term goals. The right structure depends on objectives, budget, health, underwriting, and how much flexibility you want.