What is the difference between term and permanent life insurance?
Term insurance provides you with coverage for a specific period of time. It pays a benefit only if you die during that term. Some term insurance policies can be renewed at the end of the period. Others give you the ability to reenter. Premium rates will increase at each renewal date or each reentry. Many policies require you to provide evidence of insurability at reentry in order to qualify for the lowest available rates. Because term insurance premiums are generally lower than permanent insurance premiums, you can usually afford a higher level of coverage. Term insurance is good for covering responsibilities that will diminish or end over time, for instance, mortgages or car loans.
There are various retailers promoting life insurance, however, we encourage you to read the fine print. Insurance agents and brokers who work directly for insurance companies have the proper education and qualifications to advise you properly about life insurance. We recommend that you review your life insurance on a regular basis to ensure that it meets your present needs. Insurance rates have decreased 25% over the past few years. It may be well worth your while getting some quotes to compare to the cost of your existing coverage. Please see: Reasons To Review Your Existing Term Insurance The brochure will help you determine the right amount of coverage for you. Save yourself time and effort by contacting us. We listen to your needs then offer sensible advice and easy to understand solutions. Now is the time to start “Insuring your success”. Mortgage Insurance Protection The Problem: The bank says that I need to life insure my mortgage. The Solution: It makes sense to have life insur
Term life insurance is typically the least expensive type of coverage, at least initially, and the simplest. These policies do not build up a cash value. Coverage is in effect for a fixed term or period of time, usually one to 30 years, and typically may be renewed after the initial term. The policy pays your beneficiary a fixed death benefit if you die while the policy is in force. The premiums are lowest when you are young and increase upon renewal as you age. Be sure to check your policy for age or other renewal restrictions. Permanent life insurance includes whole life, universal life and variable life insurance. Whole life provides protection as well as a guaranteed cash value. The premiums remain at a fixed level for the duration of the policy. Over time, the policy generally builds up cash value on a tax-deferred basis. Some companies pay a dividend, which is a return of excess premiums. Universal life insurance is a flexible life insurance plan. These policies are interest-sens
Term life insurance is valid for a specific time frame, or term. A permanent life insurance policy pays out upon the insured person’s death, no matter how long the policy has been open. Term life insurance premiums are often less expensive then permanent policies, but they often are renewed at a higher premium. Find out how much a term or permanent life insurance policy will cost you with a free quote from Peoples First. Contact Us.
Permanent and term life insurance provide death benefit coverage. They both pay the face value of the certificate on the death of the insured individual. Permanent life insurance covers you throughout your entire life while term life insurance provides coverage for a specified number of years. Since the coverage is limited, the premiums for term life insurance are usually lower than those for permanent life insurance. However, premiums are based on your age at the time of renewal – the older you are, the higher your premium. Once your term life insurance contract expires, the chances are you’ll be required to renew at a higher premium rate. Premiums for permanent life insurance usually remain constant throughout your life. Because of its lower initial premiums, term insurance is attractive to those who wish to select the largest death benefit for their premium dollar. Term insurance provides protection for a specific period of time and pays a death benefit only if you die during its te
