Term Life Insurance Vs Permanent

Analogy between term life insurance and permanent has been a thought agitating debate. Term life insurance provides coverage at a fixed rate of payments for a limited period of time. It is the most affordable life insurance as it has the lowest premium in the early years. In case of any unfortunate event, investment in term life insurance will cover your family against financial troubles.

For Permanent life insurance, the payout is assured at the end of the policy, and the policy increase cash value. Permanent life insurance is used for life-long protection. As long as you pay the premiums, the death benefit will be paid.

Benefits of Term Life Insurance

Term life insurance is the most cost-effective, simple, and grade insurance policy. The main advantage of term life insurance over permanent life insurance policy is cost. The policy offers a lump sum to the family of the life assured in case of death or critical illness.

A term life insurance policy is basically a death benefit payable only within a selected time period.

Term life insurance offers you a greater level of flexibility over permanent life insurance.

Term insurance policies provide the advantage of changing the term for a particular policy. For example, if you have a 20 year term policy, you can convert it into 14 or 15 years.

For the death benefit, this policy offer advantage for a particular number of years. At the time of policy purchase, you have to decide the time period.  You can buy your policy for 1 year, 5 years, 10 years, 15 years, 20 years, 25 years or 30 years.

Benefits Of Permanent Life Insurance:

The cost of premium will remain same as long as the policy is in force. In permanent life insurance the cost of the premiums paid will never increase.

Permanent life insurance provides long-term goals by offering consumers consistent premiums and guaranteed cash value accumulation.

Policy holders can potentially take a loan out on their policy.

Permanent life insurance policy also provides benefit in terms of Accident Benefit Rider option this benefit will be available for an amount not exceeding the Sum Assured. Mostly this benefit is applicable for Regular polices and not for Single policies.

In permanent life insurance policy, you will get your cash value in hand and can use it at the time of emergency. Term life insurance helps your family to keep their financial independence, even when you are not around. This policy provides a stated benefit upon the death of the policy owner, provided that the death occurs within a specific time period.

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