General insurance The difference between term and permanent life insurance

[Holicent]

Term life insurance is a type of life insurance policy that provides coverage for a specific period of time, or "term." If the policyholder dies during the term, the policy pays out a death benefit to the beneficiary. If the policyholder does not die during the term, the policy expires and does not pay out a benefit.
Permanent life insurance, on the other hand, provides coverage for the policyholder's entire life and includes an investment component known as a "cash value." This means that the policy accumulates a cash value over time, which the policyholder can borrow against or withdraw. There are several types of permanent life insurance, including whole life, universal life, and variable life.

In general, term life insurance is less expensive than permanent life insurance and is a good option for people who need temporary coverage or want to provide financial protection for their family in the event of their death. Permanent life insurance is more expensive but provides lifelong protection and the opportunity to build cash value. It may be a good option for people who want to leave an inheritance or need to cover long-term financial obligations, such as a mortgage.

 

[Jasz]

Term life insurance and permanent life insurance are the two main types of life insurance.

Term life insurance is a type of life insurance that provides coverage for a specific period of time, such as 10, 20, or 30 years. It is generally the most affordable type of life insurance, and it is often used to protect against the financial loss that can occur when the policyholder dies during the term of the policy.

Permanent life insurance, on the other hand, provides coverage for the entire lifetime of the policyholder. This type of life insurance is typically more expensive than term life insurance, but it also provides additional benefits, such as a cash value component that can be used to accumulate savings or investment. Types of permanent life insurance include Whole life, Universal life and Variable life.

In summary, Term life insurance is a type of life insurance that provides coverage for a specific period of time, and it is generally the most affordable type of life insurance. Permanent life insurance, on the other hand, provides coverage for the entire lifetime of the policyholder, and it is typically more expensive than term life insurance but also provides additional benefits such as cash value component.