When it comes to ensuring your family is provided if the worst should happen to you, life insurance is the most affordable and reliable route. However, when shopping for life insurance in Roseville, you’ll find there are a lot of options available. Two of the most popular are term and permanent life insurance. There is a major difference between these two options. It is important to understand that difference in order to pick the insurance policy that is right for your family. Here is a simple guide to understanding the difference between these two policies.
What Is Term Life Insurance?
Term life insurance is a type of life insurance that lasts for a predetermined amount of years. This period is known as the “term.” Typically the term lasts between 10 and 30 years. During the term you will pay a set premium. In the case of your demise, your family will receive a tax-free death benefit to help pay for your final expenses. When the term expires however, so do the benefits along with the policy.
What Is Permanent Life Insurance?
Permanent life insurance is a name for a variety of different life insurance policies that never expire. Thus the name “permanent.” Typically there are two types of permanent life insurance policies. The first is whole life insurance which lasts the entire life of the policyholder and will be paid out to the recipients upon death. The second kind is universal life insurance which combines a death benefit with a savings plan. It also has a flexible premium structure.
What Are The Key Differences Between Term And Permanent Life Insurance?
There are several primary differences between the two types of policies. Understanding these differences will help you decide which policy is right for your Roseville family. Here are the primary differences between the two:
- Length Of Coverage: Temporary life insurance lasts for a period designated by the policyholder. Permanent insurance lasts the whole lifetime of the individual.
- Costs: There is a substantial difference in premium costs between the two policies. Term life insurance is much more affordable than permanent life insurance. However, term life premiums increase substantially if renewed.
- Value Of The Policy: Permanent life insurance has a cash value. The longer you pay for your policy, the more the value grows. On the other hand, term life insurance does not have a cash value.
- Convertibility: Permanent policies cannot be converted into term policies. However, term policies can be converted to permanent policies.
Both policies pay death benefits and the policies can also be stacked for a more comprehensive coverage.
To learn more about what policy is right for your Roseville family, take a minute to browse the Asurea website at https://asurea.com. We work with dozens of insurance companies, so we provide a large variety of end of life insurance policies. When you are ready, give us a call. Our agents will get you a quote package and answer any questions you have.