Term vs. Permanent
Term vs. Permanent Life Insurance
Two great ways to protect your family — and how to pick the right one.
6 min read
Start with a question
Do you need protection for a specific stretch of years, or for your whole life?
In plain language
Term life insurance covers a set period, such as 10, 20 or 30 years, with lower starting premiums. It’s a smart way to protect your family while your children are young or your mortgage is being paid. Many term policies can be converted to permanent coverage later.
Permanent life insurance — including whole life, universal life and indexed universal life — protects you for your entire life and builds cash value you can use later. It’s protection and long-term planning in one policy.
Term
- Coverage for a set period
- Lower starting premiums
- Ideal for specific goals like a mortgage
- Often convertible to permanent
Permanent
- Lifetime coverage
- Builds cash value
- Flexible options like IUL
- Protection plus long-term planning
A practical example
Example
James and Aisha want coverage until their youngest finishes school, plus lifelong protection for each other. Their licensed professional shows them how to combine term and permanent coverage to cover both goals.
Keys to get the most from it
- Lock in coverage early, when premiums are lowest.
- Fund permanent policies consistently to maximize cash value.
- Review your coverage as your family grows.
Common questions
Find My Ideal Coverage
Find My Ideal CoverageReady to put what you learned into action?