This article is general education, not individual financial, insurance, legal, or tax advice. Your needs and applicable rules may differ.
Different time horizons
Term coverage generally lasts for a specified period if premiums and conditions are met. Permanent coverage is designed for a longer period and may include a cash-value feature.
Neither category is automatically better; start with how long the need lasts.
Compare what matters
Request details about premium structure, guarantees, renewal or conversion rights, cash-value assumptions, surrender charges, and lapse risk. Illustrations may contain nonguaranteed values.
Compare policies using the same benefit and assumptions, not just the first-year premium.
Fit with the broader plan
A temporary mortgage or childcare need differs from a lifelong transfer goal. Consider affordability if income changes.
Discuss tax and estate implications with qualified professionals before making ownership decisions.
Explore the full guide
The Complete Life Insurance Guide for Families
