Term Life Insurance Vs. Permanent
Term life insurance and permanent (or whole life) insurance decisions are affected by age, finances and investment preferences. Term life costs much less. Permanent insurance includes an investment in which funds are managed by the insurance company.
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Considerations
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When choosing between term life and permanent life insurance, age, income and investing options must be considered.
Benefits
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Term life benefits include low cost and ability to choose the length of the term. Permanent life insurance benefits include income from invested monies.
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Features
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Term life insurance allows the insured to choose how much money will be put toward the policy and the length of the policy. Permanent life insurance requires much more money to be paid in, and management of monies to be invested is handled by the insurance company, not the insured.
Time Frame
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Term life insurance is an option most often used by those with less income or for use in a specific time frame such as the life of a home mortgage or until children complete college. Permanent life insurance might no longer be available once the insured reaches 50 years old.
Geography
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Not all insurance types are available in all states. Where the insured lives affects what options are available in term life and permanent life insurance. Geographic address can also affect insurance cost.
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Resources
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