Which is the better option: Term Life Insurance or Permanent Life Insurance? Maybe you’ve asked your self this question before. Term life insurance and permanent life insurance both serve the same purpose of financially protecting your loved ones in the event that a tragedy occurs. Think of life insurance as the “wrapper” to a term life insurance or a permanent life insurance piece of “candy”, both have the same wrapper but are different types of candy. Depending on your current situation, either one or even both, can benefit you.
Term life insurance is usually cheaper and is associated with “renting” a death benefit. Once your term is up, life insurance premiums will be significantly higher. Permanent life insurance is associated with “owning” the death benefit, because as long as you keep it, it will be with you for life. Permanent life not only provides a death benefit but in most cases comes with living benefits and has the potential to grow a cash value and can serve as an income source for retirement.