When choosing life insurance, it’s important to understand the two broad categories available:
Permanent Life Insurance
Term Life Insurance
Permanent life insurance is designed to last your entire lifetime, provided you continue to pay your premiums. In many cases, permanent policies also build cash value, which can be accessed for personal use during your lifetime—such as covering unexpected expenses, supplementing retirement income, or funding emergencies.
Key Benefits:
Lifelong coverage
Potential to accumulate cash value
Often used for estate planning, long-term financial goals, and legacy creation
Term life insurance offers coverage for a specific period—commonly 10, 15, 20, or 30 years. Once the term ends, the coverage expires unless you convert it to a permanent policy (if your policy allows) or purchase a new term policy.
Key Benefits:
More affordable than permanent insurance
Designed for temporary needs (e.g., mortgage protection, income replacement)
Straightforward structure with no cash value
The right type of policy depends on your goals and the reasons you’re buying life insurance:
Term Life Insurance is typically best for:
Replacing lost income during working years
Paying off a mortgage or other debts
Ensuring your children’s education is covered
Permanent Life Insurance is better suited for:
Providing long-term financial support to a spouse
Building a legacy for future generations
Funding retirement or estate planning strategies
Always begin by asking yourself:
Why do I need life insurance?
If your need is temporary, a term policy may be the ideal solution.
If your need is lifelong, permanent coverage may offer the protection and flexibility you’re looking for.