Term Life Insurance VS. Permanent Life Insurance

Welcome to episode 4 of the basics. In the episode we talk about the difference between Term life Insurance and permanent life insurance.

Term insurance is life insurance that guarantees a death benefit during a certain period of time that you pick in exchange for premiums, and if you die in that window of time the life insurance pays a lump sum to a person of entity of your choice.

Term insurance is commonly used to cover temporary needs for example...someone buys a house for $500,000 with a 15 yr or 30 yr loan. They take out a term life insurance policy to to pay off the house for their family if they die during that period.

Permanent life insurance is pretty self explanatory. It’s permanent. It’s designed to last into your hundreds. You pay premiums into a policy that guarantees payment when you pass away to your beneficiary.

Now I want to start this off by saying you need to make sure you’re working with an experienced broker before you look into permanent insurance. There are types of “permanent life insurance” policies that if they aren’t set up correctly they will not last your whole life and the premiums you payed for a “permanent policy” are wasted.

Permanent life Insurance is commonly used for estate planning, college funding for kids, and now because of advancements in the industry..Long Term Care.

Follow us on social media for more financial services content!

Facebook:

Instagram:

Twitter:

life insurance,term life insurance,permanent life insurance,finance,parenting,money tips,financial services,insurance broker,