Home » Term vs. Permanent Life Insurance: Choosing the Right Policy for Your Needs
June 20, 2024
Axcess Insurance Group

Term vs. Permanent Life Insurance: Choosing the Right Policy for Your Needs

Following an insured’s passing, life insurance can offer a valuable financial safety net for loved ones left behind. This insurance can provide financial protection by disbursing a sum of money, known as the death benefit, to beneficiaries upon the insured person’s demise.

It’s essential because it can replace lost income, cover debts and support dependents, helping ensure their well-being. Investing in life insurance is a responsible and strategic choice, offering peace of mind and financial security whether safeguarding a family’s future, settling debts or creating a legacy.

What Is Term Life Insurance? family, sun, love

One type of coverage is called term life insurance, which is only for a fixed period, commonly 10, 20 or 30 years. Term life insurance can provide a payout only if the policyholder passes away during the specified term. If they outlive the term and the coverage expires, their beneficiaries won’t receive any funds. When the policy term ends, the policyholder must generally apply for a new policy to maintain coverage.

Term life insurance is typically recommended to those who want more affordable coverage and those who want a life policy to cover only a specific period, such as until children graduate from college.

What Is Permanent Life Insurance?

Permanent life insurance is designed to last the policyholder’s lifetime and typically pays out regardless of when the person dies. It usually will not expire unless the policyholder stops making premium payments. Permanent life insurance can also have a cash value component that increases based on contributions from the policyholder’s premium. When sufficient cash accumulates, the policyholder can borrow against the account or surrender the policy for a cash payout.

How Much Is Life Insurance?

Insurance prices vary based on several factors, such as policy type, coverage amount, the insured person’s age and health and individual risk factors. Term life insurance offers coverage for a specific duration and is generally more budget-friendly compared to permanent life insurance, which can provide coverage throughout the insured person’s lifetime.

Which Type of Life Insurance Should I Choose?

Selecting the right form of life coverage depends on individual preferences and financial goals. Numerous policies are available within both term and permanent life insurance categories. A term life insurance policy may make sense for those who require coverage for only a limited number of years. A permanent life policy may be valuable to those who want lifelong coverage and the potential for greater returns.

Talk to an Axcess Insurance representative about your insurance options. They can help recommend coverage based on your unique circumstances.

Life Insurance in Bountiful, UT

The primary differences between permanent and term life insurance come down to the cost and length of the policy, but there are nuances to both types of coverage. The most important thing is that you have the coverage you need if the unexpected happens. To learn more about the advantages of life policies and ensure you have appropriate coverage to safeguard your finances and loved ones, contact Axcess Insurance.


This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

Categories: Life

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