INFOGRAPHIC: Term Vs. Permanent Life Insurance

Here’s an infographic breaking down the differences between Term and Permanent Life Insurance.  Which one suits your needs?

Term Life Insurance versus Permanent Life Insurance

Category
Term Life Insurance
Permanent Life Insurance
PolicyTerm insurance policies offer level premiums for a stated term.Permanent insurance policies offer level premiums for the insured’s lifetime.
DurationMost 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.
Cash ValueTerm 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.
Paid-up valuesTerm 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.
CalendarTerm 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.

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