Choosing the right life insurance policy to protect your family might feel overwhelming initially. You need to make sure that your family is covered, in case of an untimely death. This coverage will usually cover funeral costs and other expenses that your family might face without you there to support them. You can settle for a term or permanent life insurance. Here is what to know about term vs. permanent life insurance.
Term vs Permanent Life Insurance
Term life insurance provides coverage for a set amount of time. For as long as this protection lasts, you have coverage if you die prematurely. The experts at Arroyo explain that you can usually choose between 10,20 or 30-year terms.
Permanent life insurance, on the other hand, lasts for as long as you live. It does not have an expiration date the way that term life insurance does. This policy usually grows in value over time, unlike the term life insurance that is generally static. With permanent policies, you can even borrow against your life insurance.
To purchase life insurance is an investment that most families need to make. It provides financial security to dependents who will need assistance in paying for funeral costs, mortgage payments, and other expenses after you die. To know the difference between term and permanent life insurance can help you protect your loved ones.