TERM vs PERM

What's the difference?

There are many kinds of life insurance, but they generally fall into two categories: term insurance and permanent insurance.

Term insurance is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.

In contrast, permanent insurance provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time.

It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances and financial goals.

But remember, the best way to figure out the amount and type of life insurance that makes sense for your particular situation is to meet with a qualified and licensed life insurance professional.

Most people are familiar with the basics of life insurance. You pay a premium and your family receives a monetary payout when you die. But there is more than one type of life insurance policy that can protect your family’s financial future. You must decide which type of life insurance is right for your needs.

What is term life insurance?

Term life insurance is the most affordable type of life insurance. This makes it popular among young adults who are just starting families of their own. With a term life policy, you select the number of years—the term—in which your policy will be active. You may find monthly premiums to be affordable. But, keep in mind that dependents will receive a payout only if the policyholder dies within the specified term.

What are the benefits of term life insurance?

If you wish to leave a legacy behind for your family, life insurance is an important consideration. Term life insurance provides an affordable way to ensure your family can continue making ends meets. Because this is the most basic type of life insurance, it’s easy for many to fit it into their budgets. And you’ll pay the same rate for your entire term, regardless of waning health.

Most insurance providers allow you to select a term of one to 30 years, giving you the option to lock in your rate for longer. When you renew a term life insurance policy, your new rate is recalculated based on your current health and other factors. This is why many people lock in their rate for longer terms.

Are you wondering how much term life insurance would cost you? Fill out a quote form today, and let our agency find a policy for you. All it takes is a few minutes to provide your family with years of financial protection.

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What is universal life insurance?

Universal life insurance is a form of whole life insurance that gives you more control when it comes to how your money is being handled. It combines the low-cost coverage of term life insurance with the savings element of whole life insurance. Universal life insurance provides more flexibility than other policies. You can review and adjust premiums, savings element and the death benefit as circumstances change.

What are the benefits of universal life insurance?

With a universal life insurance policy, you can shift money between the insurance and savings components as the market and interest rates change. This control is great for people who prefer a hands-on approach to investing. For example, if your savings component has low returns, you can use it to pay the premiums instead of paying out of pocket.

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Want to learn more about universal life insurance? Contact us to learn more about it. We’re happy to answer your questions and help you find a policy that meets your needs.