Life Insurance Basics
What is the difference between term and permanent life insurance?
Term life insurance provides coverage for a specific period (10-30 years) and has no cash value. Permanent life insurance (whole life, universal life, IUL) provides lifelong coverage and builds cash value. Term is the most affordable. Permanent is more expensive but provides additional benefits.
Key Points
- Term: coverage for a specific period, no cash value, most affordable
- Permanent: lifelong coverage, builds cash value, more expensive
- Whole life: fixed premiums, guaranteed cash value growth
- Universal life: flexible premiums, adjustable death benefit
- An independent agent can help you choose the right type for your needs