What’s the Difference? Term and Permanent Life Insurance

Family with term and permanent life insurance questions.

Do you know the difference between term and permanent life insurance? Many aren’t aware that different types of life insurance exist, let alone how to start choosing. Maybe you’ve just gotten married or bought a house or had a baby. How do you choose? We can help!


Term life insurance is typically for younger families who have more immediate & specific insurance needs. Things like mortgages, educational expenses, and automotive loans would all qualify as what you’d want covered for your loved ones.

Term insurance covers you for a specified amount of time, which is known as a term. Most often, terms are available in 10, 15, 20, 25 and 30 year lengths based on what your coverage needs are.

Term coverage also tends to be less expensive because it’s only covered during a specific period. Known for its low premiums and guaranteed payouts, your beneficiaries will receive a tax-free lump sum of money if you pass away under term insurance.


Permanent life insurance, as the name implies, is designed for lifelong needs. These include retirement income, estate planning, and final expenses such as funeral and burial costs.

Permanent insurance covers your entire lifetime, as long as premiums are paid on time. Though a bit pricier than term, permanent insurance is affordable and can accumulate cash value over time. You pay a premium each month that goes towards your coverage as well as an investment element. Throughout coverage, you have the ability to borrow/withdraw money from the investment side when need arises.

Life Insurance Awareness Month

Did you know that September is Life Insurance Awareness Month? It’s just around the corner! Keep an eye out for more educational articles and content regarding term and permanent life insurance, and choosing coverage that fits your needs. #LIAM.

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Regardless of what type of life insurance fits you best, it’s necessary to have coverage. While no one plans to pass away, it’s reassuring to know that loved ones can be taken care of through life insurance coverage.

Contact us for a quote today!