One of the best ways to make sure that your family is cared for in the future is to invest in life insurance. However, there are a lot of things to consider when you begin shopping for an insurance policy. Beyond typical things like premiums, cash value, and so on, one of the major considerations you will find yourself faced with is choosing between different types, such as permanent life insurance and term life insurance. Let’s take a closer look at these two policies and why you should choose permanent over a term.

What is the difference between term life and permanent life?


Aptly named, both of these insurance policies are quite easy to understand. Term life insurance provides you with coverage over a specified number of years or terms. Term insurance is chosen by some due to the lower premiums that they pay throughout the course of their term policy. This gives them the lower coverage they need while still offering their families protection should something happen during that term.

Permanent life insurance, on the other hand, gives you and your family coverage for as long as you continue to pay premiums on your permanent policy. The premiums stay the same throughout the duration of your life insurance policy, and you don’t have to worry about renewing as you’re covered until your family might have a need for your policy. While there are still various factors to consider when shopping for permanent insurance (such as choosing between whole life insurance and universal life insurance), it’s easy to see why a permanent policy is a great choice for those who want peace of mind as they maximize their family time.

Why should I choose permanent over term life insurance?


There are considerations like policy complexity and premium costs that should be considered when shopping for permanent life insurance. That being said, there are many benefits to choosing a permanent life insurance policy over a term life insurance policy. Some of these benefits include the following:

  • Whole life coverage with no surprises: No one likes surprises, especially when it comes to their money. With a permanent life insurance policy, you can rest knowing that your type of policy gives you coverage throughout your entire life and that you won’t have to deal with any premium changes or policy lapsing while you continue to pay. This type of stability is great for everyone.
  • Acts as a cash resource for emergencies: No one knows what the future holds. While you might be making plans for retirement, life might have other plans that result in unexpected expenses. The good news? Unlike term life insurance, permanent life insurance accrues cash value that you can tap into tax-free once you reach a certain threshold. In the event that you need access to extra cash in the future, your permanent policy has you covered.
  • Helps you plan for retirement and inheritance: Planning for the future involves learning about and working toward a lot of moving components. Fortunately, permanent coverage can help you work towards a solid plan. Whether you’re looking for ways to grow your wealth in a tax-deferred manner or you want to make sure that a child receives cash to manage funeral expenses as well as their inheritance, a permanent life policy is likely the best choice for you.

Shopping for life insurance is made simple when you have a better understanding of the different types of life insurance you have at your disposal. If you’re shopping around and you’re stuck between two choices like term and permanent, use the information above to learn what each one offers and why permanent is the best choice for you and your family members.