The Difference Between Term Life Insurance and Permanent Life Insurance Explained

The Difference Between Term Life Insurance and Permanent Life Insurance Explained

If you are unfamiliar with life insurance or just beginning to explore your options, one of the first things you will be faced with is the choice of term insurance and permanent insurance. These are the two basic forms of life insurance that suits a variety of needs for those in search of life insurance protection.

Before getting caught up in all the insurance speak that can often confuse consumers, here is what you need to know about these two basic forms of insurance.

Permanent Insurance

Often referred to as Whole Life Insurance, permanent insurance is usually purchased to protect the policy holder and beneficiary for the long term. As long as premiums are kept up-to-date and maintained, the policy will be kept in force. This is important because even if your health situation changes, you will still be able to maintain protection by making timely premium payments.

One of the other significant benefits of a whole life or permanent insurance policy is that they often build cash value as time passes. This becomes a financial asset that can be accessed for college expenses or needs or opportunities that may present themselves in the future. This makes whole life policies popular for parents and grandparents to purchase for young children, as a form of savings for the future. It provides life insurance coverage while also building value.

Term Insurance

As opposed to permanent insurance, Term Insurance is intended to cover the life of the insured for a specific period. This is valuable in a variety of circumstances. For young families, it allows them to acquire a large amount of insurance at an affordable price. This is beneficial as young families move through a period of high responsibilities, like a mortgage, car payments, student loans and credit card debt.

Term Insurance usually can be renewed if the insured meets health and physical standards set by the issuing company during the renewal period. While term insurance is more affordable than whole life insurance, it generally does not build any cash value that can be tapped into in the future.

What They Have in Common

What both term and whole life insurance have in common is that both are less expensive to acquire when you are young and healthy. That means you will never be able to purchase life insurance of either type at rates that are less expensive than today. That’s why we invite you to contact our independent insurance agents to get a no-obligation quote today.

Contact one of our agents, answer a few questions, and our professionals will go shopping for the best rates for you. It is part of the power of working with an independent agent whether term or whole life insurance is best for you.

Exploring life insurance? Let us help. Contact us today.

We work for our clients not the insurance compay

Leave a Comment





Beyond the Grave: Burial Insurance vs. Life Insurance Explained

March 27, 2024

Cracking the Code: Your Car’s VIN and What It Means to You

March 26, 2024

The Aftermath: Proving Your Possessions After a Disaster

March 25, 2024

Lost in Translation: Skills of the Past That Young People Might Miss Out On

March 22, 2024

Beyond the Box Truck: When Does Your Business Need Special Vehicle Insurance?

March 21, 2024

From Bronze Age to Boomers: How Life Expectancy Went From Meh to Magnificent

March 20, 2024

From Chauffeur to Cheerleader: The Teen Driver’s (and Parent’s!) Guide to Car-Buying Chaos

March 19, 2024

When Branches Become Brawls: Who Pays When a Tree Attacks Your House?

March 18, 2024

From Pet Rocks to Pokémania: A Funtastic Journey Through 50 Years of Fads

March 15, 2024

Don’t Be a Sitting Duck: Essential Cybersecurity Tips for Small Businesses

March 14, 2024

Beyond “My Beloved Spouse”: A Guide to Choosing Your Life Insurance Beneficiary

March 13, 2024

Rental Car Roulette: Should You Spin the Wheel on Extra Insurance?

March 12, 2024

Bundling Up Your Homeowners Insurance: A Money-Saving Masterclass (or Myth?)

March 11, 2024

Bringing Home Baby: A Guide to Navigating the Joyful Chaos

March 8, 2024

See It All, Secure It All: The Hidden Benefits of Video Surveillance for Your Business

March 7, 2024

Life on the Edge? How Your Hobbies Can Affect Your Life Insurance Rates

March 6, 2024

The Costly Consequences of a DUI: Beyond the Backlash

March 5, 2024

5 Hot Cities Millennials Are Flocking To (and Why They’re So Awesome)

March 1, 2024

From Ride-Sharing to Reality: 5 Billion-Dollar Ideas Born in the Last Decade

February 29, 2024

Unveiling the Different Players (and Why We’re Your Guide!)

February 28, 2024

Beyond the Beep Beep: Unveiling the World of Supercars

February 27, 2024

Home Sweet Home, Protected Home: Why Upgrades Need Insurance Check-Ups

February 26, 2024

Beyond Nicknames: The (Sometimes Bizarre) Tales of How American Cities Got Their Names

February 23, 2024

Small Biz Squad Unite! Why Independent Insurance Agents Are Your Secret Weapon

February 22, 2024

Cracking the Code: Cash Value, Loan Value, Surrender Value – It’s All in the Life Insurance Policy!

February 21, 2024

Buckle Up for Safety: Are Cars Getting Smarter Than Crashes?

February 20, 2024

Love Your Home, Love Your Coverage: Smart Tips for Homeowners

February 19, 2024

From Herbie to Christine: Cars That Stole the Spotlight (and Maybe Your Heart)

February 16, 2024

Decoding Your Business DNA: Why SIC Codes Matter (and How We Can Help!)

February 15, 2024

Beyond the Payout: 6 Unexpected Perks of Life Insurance You Might Not Know

February 14, 2024

AutoPay Your Car Insurance? Cruise Control or Speed Trap?

February 13, 2024

Don’t Gamble with Your Home: Decoding the Odds with Homeowners Insurance

February 12, 2024

Employee vs. Contractor: Sorting the Suit from the Solopreneur

February 8, 2024

Poppin’ Pills and Counting Coins: America’s Prescription Drug Dilemma

February 7, 2024

Car Crash Calamity

February 6, 2024

Simple Steps to Keep Your Home a Flame-Free Zone

February 5, 2024

Ditch the Dinosaurs, Embrace the Dill: Your Guide to Quirky Museums Across the USA

February 2, 2024

Home Biz Hero: Should You Suit Up with Business Insurance?

February 1, 2024

Ditch the Piggy Bank, Grab the Plan: Your Adulting Health Insurance Guide

January 31, 2024

Oh Deer! Crash Course on What to Do After Hitting an Animal

January 30, 2024

Unveiling the Origins of Everyday Expressions

January 26, 2024

New Year, New Armor: 6 Ways to Shield Your Business in 2024

January 25, 2024

Life Insurance: Who’s Who in the Zoo (of Coverage)?

January 24, 2024

Private Property Crash? Don’t Panic, Just Play CSI! (Well, Sort Of)

January 23, 2024

Big Game Halftime Shows We Can’t Forget

January 19, 2024

Professionally Awesome, Legally Untouchable

January 18, 2024

Don’t Fear the Four

January 17, 2024

Cruisin’ Through Time

January 16, 2024

Treasure Trove or Insurance Trouble?

January 15, 2024

Baby Name Game: From Mary to Olivia, 100 Years of Popular Picks

January 12, 2024

Ditch the Clichés, Cupid! Budget-Friendly Valentine’s Day Ideas That Spark Joy, Not Debt

January 12, 2024

Oops! Employee Mishaps Got You Down? Insurance to the Rescue!

January 11, 2024

Cracking the Code: Why Your Health Insurance Bill Isn’t One-Size-Fits-All

January 10, 2024

Beyond Driving the Basics: 15 Life Skills Young Drivers Need (Before They Need Them)

January 9, 2024

Homeowner’s Insurance Secrets Revealed: 7 Quirky Factors Affecting Your Rates

January 8, 2024

The Fab Four: Unveiling Surprises About the Beatles

January 5, 2024

Bricks and Mortar: Protecting Your Small Business with Comprehensive Insurance

January 4, 2024

New Year, New Resolutions: 5 Ways to Refresh Your Life Insurance

January 3, 2024

Roadway Chaos: Dangers and Responsibilities of Unsecured Loads

January 2, 2024

Unveiling the Value: Why Knowing Your Home’s Worth Matters

January 1, 2024

Contact Us

-CONTACT US

OUR LOCATION

Have A Question?

We have an answer. Call us at 720-388-1906

8000 S Lincoln St 205 Littleton, Colorado 80122

720-388-1906

© Copyright 2024 Stanton Insurance  |   All Rights Reserved
Site by ICA Agency Alliance

8000 S Lincoln St 205 Littleton, Colorado 80122
720-388-1906

© Copyright 2024 Stanton Insurance  |   All Rights Reserved
Site by ICA Agency Alliance