Term Life Insurance
Purpose: Pure protection for a set number of years. Best for: Income replacement, mortgage protection, young families, budget‑focused buyers.
Key Points:
Covers you for a specific period (10, 20, 30 years).
Pays a death benefit if you pass away during the term.
No cash value — strictly protection.
Much lower cost than permanent life.
Can often be converted to permanent life later.
Why people choose it: Affordable, simple, and ideal for covering temporary financial responsibilities.
Permanent Life Insurance
Purpose: Lifetime protection + cash value growth. Best for: Long‑term planning, estate needs, final expenses, wealth building.
Key Points:
Coverage lasts your entire life (as long as premiums are paid).
Builds cash value that grows tax‑deferred.
Can be borrowed against or used for emergencies.
Higher premiums because it includes savings + lifelong coverage.
Types include Whole Life, Universal Life, and Indexed Universal Life.
Why people choose it: Guaranteed lifelong coverage and a financial asset that grows over time.