Term versus Permanent Life Insurance

The two common types of life insurance options include term and permanent life insurance. Term insurance lasts for a definite period while permanent insurance lasts for a lifetime. Depending on an individual’s requirements, they may need the affordability of term life which is generally required for short-term requirements like a mortgage. Or else, you may want the permanent protection and cash value that a range of permanent life insurance products provides. Oregon life insurance plans aim to equip individuals with plans that are best suited to their distinct needs. Here’s a look at the essential differences between the two types of life insurance:

Cost of premium

Term life premiums are usually lower than permanent life. Nevertheless, term life premiums usually increase upon every renewal while permanent life insurance premiums stay the same.

Length of coverage

The term life insurance offers coverage for 10, 20 or 30 years to fit your budget and needs and is designed for flexibility. On the other hand, permanent insurance includes universal life and whole life and is crafted for lifetime financial protection.

Cash value

Many types of permanent insurance come with a savings component which is known as cash value. You can choose to borrow against or cash in your policy of permanent life insurance and use the funds according to your needs. Term life premium doesn’t gather much cash value as it does not have a component of savings.