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What is the difference between permanent and term life insurance and which one should you pick? Permanent life policies offer death benefits plus a savings account while term life policies offer death benefits only. This means that in a term life policy, the policy owner’s survivors will get an amount of money at the incidence of death provided that the death occurred within the length of the policy. In permanent life policy, the insured’s survivors will get a death benefit plus if insured is still alive, he/she could get back the money by cashing in the policy or loaning against it. Permanent life insurance premiums cost more than term premiums because of the savings account aspect, but the longer its kept, the higher the cash value. For term life insurance, the premiums are minimal in comparison to the insured amount but can increase after every renewal of the policy. So choosing a policy depends on how long the consumer intends to keep it and what the consumer wants from it.