Which Is Better Permanent Or Term Life Insurance

01 May 2023

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CA Rakesh Ishi (Working at Private Company) (8200 Points)
Replied 01 May 2023

Deciding between permanent and term life insurance depends on your individual needs and preferences. Here are some factors to consider:

Term life insurance:

Provides coverage for a specific term (e.g. 10, 20 or 30 years)
Generally has lower premiums than permanent life insurance
Provides coverage only for the term of the policy and has no cash value
Is suitable for people who want coverage for a specific period (e.g. until their children are grown or their mortgage is paid off)

Permanent life insurance:

Provides coverage for your entire lifetime
Has higher premiums than term life insurance
Has a cash value component that grows over time
Allows you to borrow against the cash value or use it to pay premiums
Is suitable for people who want lifelong coverage and want to build savings in addition to the death benefit

Ultimately, the choice between permanent and term life insurance depends on your individual circumstances, financial goals, and budget