Anyone shopping around for a Life Insurance policy will face this dilemma: Term Life Insurance or Permanent Life Insurance? There’s no one-size-fits-all answer. Your choice will depend on your budget, your lifestyle and your coverage needs.
This guide will go through the pros and cons of both types of policies to help you determine which one works best for you.
Term Life Insurance
Term Life Insurance is the most basic of the two types of Life Insurance. As its name indicates, this policies cover only a specific length of time that varies depending on the carrier.
Pros
- Adaptable: You can match Term Life Insurance to a period of your life of specific concern. For example, you may decide to get coverage while you pay off your mortgage.
- Convenient: This is usually the most affordable Life Insurance option.
- Convertible: Some Term Life Policies can be converted to Permanent Life Policies, although this may vary depending on the carrier.
Cons
- Your premiums may go up: Once your policy expires, your premiums may go up because you will be older. However, as explained above, some policies are convertible
Permanent Life Insurance
This is a more complex product than term life insurance. Permanent life insurance offers lifelong coverage and some interesting financial add-ons. For example, Permanent Life Insurance policies may include a cash value feature, which is basically an investing account built into your policy.
Pros
- Lifetime coverage: This option covers you for the duration of your life and pays your beneficiaries no matter when you pass away, if your premiums are paid.
- Options: Permanent Life Insurance comprises options such as whole, universal and guaranteed.
Cons
- More expensive: The cash value feature and the longer length of time make Permanent Life Insurance costlier than Term Life Insurance.
Whether it’s Term Life Insurance or Permanent Life Insurance, at Delgado’s Insurance we are committed to helping you find a policy customized to fit your individual coverage needs.
We have locations in Riverside, California, and Bloomington, California. Contact us today by telephone (951-361-0084, 909-421-9003), email or through our social media accounts to get a free quote and learn more about our Life Insurance options. Our agents will be more than happy to assist you so you can find the coverage that makes the most sense to you.
