Here’s an infographic breaking down the differences between Term and Permanent Life Insurance. Which one suits your needs?
|Term insurance policies offer level premiums for a stated term.
|Permanent insurance policies offer level premiums for the insured’s lifetime.
|Most Term policies expire between ages 75 and 85.
|Permanent policies can take the form of Whole life, Universal Life, or Term 100 coverage, which all offer lifetime coverage.
|Term policies do not build a cash value.
|Most permanent policies build a cash value. Participating Whole Life policies have a guaranteed cash value and a non-guaranteed cash value which is referred to as their dividend value.
|Term policies do not offer any paid-up values or features if the insured has to stop paying his or her premiums.
|Permanent policies can be paid-up in a limited number of years.
|Term life policies lapse after 31 days if the insured misses a premium.
|Permanent policies allow the insured to take a premium holiday. Permanent insurance cash value can be used to offset premiums for a period of time, if the insured were unable to pay his or her premium.