Term vs Permanent Life Insurance

Term or Temporary Life Insurance

Temporary life insurance is a policy only valid during a specified period of time. You must die or transition before the term expires whether it be 10, 20 or 30 years in order to have coverage for funeral/final expenses. Term coverage does not accumulate cash value and is less expensive than permanent life insurance.

Permanent Life Insurance

Whole life is permanent life insurance that can provide for both living and death benefits. Coverage is more expensive than term. As long as premiums are continuously paid, the insurance carrier will honor benefits to your beneficiaries designated on the policy.

The benefits of permanent life insurance include being able to treat it like a savings account. Over time, cash will accumulate where a loan can be taken against the policy if needed, which typically must be repaid. Borrowing against your life insurance policy can help with college tuition expenses, buying a home, or an unexpected financial hardship.