Holicent
VIP Contributor
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.
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.