Term vs. Permanent Life Insurance – Income Protection vs. Lifelong Benefits 

Life insurance can support your financial goals at any stage of life. Some policies are designed to cover income during your working years, while others focus on long-term planning, such as leaving something behind for loved ones.

What is the Difference Between Term Life and Permanent Life Insurance?

Term life and permanent life insurance are two common life insurance options. While both offer financial coverage, they serve different purposes.

• Term life insurance may provide coverage for a set period, often 10, 20 or 30 years. If the insured passes away during that time, the insurer pays a death benefit to the beneficiaries after they file a claim. This policy is often simple and affordable, making it a suitable option for those looking to cover income loss, debts or education costs during working years.

• Permanent life insurance may provide coverage throughout the insured’s lifetime as long as premiums are regularly paid. These policies often include a savings-like feature (cash value) that grows tax-deferred over time. They can be used for long-term financial planning, such as estate strategies or leaving a legacy.

What Type of Coverage Should I Get?

Consider the following factors to determine the appropriate type of life insurance for you:

• Age and life stage—Younger individuals or those with dependents may lean toward term coverage to match income-earning years. Older adults might consider permanent policies for long-term financial planning.

• Budget—Term policies generally cost less. If affordability is a concern, term coverage may be more practical.

• Financial goals—Think about what you want the policy to accomplish. Are you covering a mortgage or planning to pass down assets?

• Health status—Your current health can affect eligibility and premium rates. Some may find it easier to lock in a permanent policy earlier in life.

• Duration of need—If you only need coverage for a specific time frame, term insurance might be sufficient. If you want lifelong coverage, permanent insurance is the way to go.

Get Covered Today

Contact Trilogy Insurance Brokers, Inc. today to discuss your life insurance requirements. Our friendly agents can help you build a custom policy.

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.