What Is the Difference Between Term Life Insurance and Permanent Life Insurance

When shopping for life insurance, you will learn there are two main life insurance policies: term life insurance and permanent life insurance. Both of these policies provide financial protection for your family; however, they differ in premium costs, total coverage, and length of coverage. When shopping for life insurance in Youngsville, NC, you want all of your life insurance questions answered. The experts at Holmes Insurance Services can help answer those questions and find you the best life insurance policy for your family’s financial needs.

Term Life Insurance

Term life insurance typically provides a more affordable life insurance option; however, these policies only cover you for a specific term length. Term lengths are stated in the policy and typically cover you for 10, 15, 20, 25 years, or any other length you select. 

Permanent Life Insurance

Permanent life insurance provides coverage for your entire life, as long as you continue making premium payments. This policy also has a cash value that is not available with term life insurance policies. If needed, you can borrow against your policy’s cash value to help pay for your retirement or other financial emergencies. 

Differences in Premiums

Term life insurance tends to be the less expensive option; however, your premium rates are calculated by several factors. These factors may include the policy type, the death benefit amount, term length (term life policies only), your age, and your overall health. Additionally, the company you purchase your life insurance policy from affects the overall premium costs. 

When shopping for life insurance in Youngsville, NC, reach out to Holmes Insurance Services to discuss your different options. Our agents can help you determine which life insurance policy is the best for your family’s future financial needs.