Save up to 70% off Life Insurance!

Male Female

Save up to 70%

off Life Insurance!

Male Female

Term Life Insurance vs. Permanent Life Insurance

It is important to understand the key differences between term life insurance and permanent life insurance when determining which is right for you. The basic differences are as follows:


Term life insurance provides coverage for a predetermined length of time, usually 10-30 years. When the time period expires, so does the insurance coverage. However, some life insurance policies do offer the option for the insured to maintain the policy at an increased rate after the initial term. This situation may also include a maximum allowed premium which caps the rate at which the insurance company may charge the customer. Permanent life insurance offers a lifetime of coverage, and cannot be canceled for any reason except non-payment.


As a rule, term life insurance premiums are considerably less than permanent life insurance premiums due to the fact that term life policies cover only a select period of time with no payout unless the insured dies within the set time period. In contrast, permanent life insurance premiums cost more due to the fact that they cover you for the length of your life, and will inevitably pay out at some point. In addition, some permanent life insurance policies offer disability coverage, and financial features such as borrowing against the policy.

Choosing your Policy

After some research on the differences between the term and permanent life insurance policies for which you qualify. Having a complete understanding of each type of policy will aid you in selecting the right policy, and assuring that your hard-earned dollars are going to where you need them the most.