There are two main types of life insurance: term and permanent. So, which one is right for you? Here’s a look at each.
Term life insurance is just what it sounds like: insurance that lasts for a fixed period, or “term.” It’s typically cheaper than permanent life insurance. It is a good option if you need coverage for a specific period, such as until your children finish college or you retire.
Pros of Term Life Insurance
- Cheaper: Term insurance tends to be cheaper than permanent life insurance because it covers you for a set period and pays out only if you die during that term.
- Flexibility: You can often buy term life insurance for 10- or 20-year periods, which makes it ideal if you don’t know how long you need to be insured.
On the other hand, permanent life insurance covers you for your entire lifetime. It’s more expensive than term life insurance, but it also has some valuable perks, such as cash value that grows over time. Here’s a quick look at the differences between term and permanent life insurance, as well as some of the pros of each:
Pros of Permanent Life Insurance
- Coverage for Your Entire Lifetime: Unlike term insurance, permanent coverage is guaranteed to last as long as you remain insured.
- Cash Value: If you purchase enough permanent coverage, you can build up a cash value that you can use for retirement or other financial needs.
- More Investment Options: You can invest some of your permanent coverage’s cash value through its policy, allowing you to earn interest on it.
Term life insurance is cheaper and usually shorter-term, while permanent life insurance has a higher cost and covers you for your entire life. As a result of these factors, term life insurance is best if you know the exact period you need coverage for, while permanent life insurance is ideal if you want coverage until your retirement. Looking for life insurance in Jacksonville, FL? 925 Partners offers a variety of life insurance products that can help you meet your needs.