Term versus Permanent Life Insurance

Many people who are in the market for life insurance will face a choice between term and permanent life insurance. This article is intended to demystify your choice of the type of life insurance you will purchase.

To begin, let’s define the different types of life insurance and how they are typical used.

Term insurance covers you and provides a death benefit if you pass away during a defined amount of years. Typical policies can range ten, twenty, or thirty years. It is also possible to get term insurance for other amounts of years to fit your needs. Term insurance is a perfect solution when you don’t need life insurance coverage for your whole life.

Permanent life insurance provides a guaranteed death benefit as long as premiums are paid. In addition, permanent insurance such as whole life insurance builds equity in the form of  a cash value that can be used for loans and can eventually, when it reaches a certain amount, pay the premiums on the policy for you.

Permanent life insurance is more expensive in the beginning than term insurance so many people get a mixture of the two types of life insurance.

If you are serious about getting life insurance, your best option is to consult a broker at CG Benefits Group to fill out a needs assessment that will help you determine your goals and needs for a policy.