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We can help you learn more about the differences between term and permanent life insurance, and which might be right for you.
Costs of Life Insurance — Permanent vs. Term Life Insurance
Typically people choose between the two most common types of life insurance: term life insurance and permanent life insurance. One of the biggest differences between the two can be the cost. Term life insurance is the most affordable option, with most policies featuring guaranteed level premiums (meaning you pay the same premium for the length of your policy). Permanent life insurance is, therefore, the more expensive option, but has the perk of literally lasting your lifetime, so long as the premiums are paid.
At SelectQuote, we will take the time to get to know your needs and compare the different types of coverage and rates available to you. In just minutes, we can provide you with unbiased price comparisons from some of the most trusted insurance carriers.
Term Life Insurance & Rates Explained
As mentioned, term life insurance is the most affordable way to protect your family’s financial security if something were to happen to you. One of the greatest benefits of term life insurance is the ability to buy it for as long as you need it, with length terms typically including 10, 15, 20, 25 and 30 years. Your premium is determined by a number of factors, including the term length, coverage amount, gender, and your health and age at time of purchase.
Permanent Life Insurance & Costs Explained
Permanent life insurance tends to be more expensive than term life insurance, oftentimes costing 10 times more. That being said, one of the greatest benefits of permanent insurance includes its lifelong coverage. Two of the most common types of permanent life insurance include whole life insurance and universal life insurance. Permanent life insurance premiums go toward both maintaining the policy’s death benefit and allowing the policy to build a cash value.
Most Affordable Life Insurance Option For You — Permanent vs. Term Life Insurance
Term life insurance tends to be sufficient for most families, as it costs less and you can choose the length that works best for you. However, whole life insurance and other forms of permanent coverage can be beneficial to some.
Term life insurance might be the right option for you if:
- You’re the primary wage earner for your family and are looking to protect them if the unexpected were to happen and your income was lost.
- You’re a stay-at-home parent, looking to help cover the cost of childcare.
- You have a mortgage that would need to continue to be paid.
- You have any debts, including credit cards or student loans.
Permanent life insurance might be the right option for you if:
- You have a high net worth and are looking to support your family in paying estate or inheritance taxes if the unexpected were to happen to you.
- You’re the parent or guardian of a special-needs child and want to make sure they have the financial resources they need.
- You are looking to provide an inheritance when you pass.
These are just a few examples to help you get an idea of what type of life insurance might be right for you, but our experienced team of licensed insurance agents can make the process quick, easy and convenient for you. We can provide coverage and rate comparisons from some of the most trusted insurance companies in just minutes, and our goal is to help you find the right coverage with the right carrier at the right price for you.
Still have questions? We’re here to help:
Find the Right Insurance for You with SelectQuote
Whether you think you’d be interested in term life insurance or permanent life insurance, we can help you weigh the options and figure out what is the best fit for your lifestyle and budget. Plus, you never pay more for our service! Let us do the heavy lifting for you.
