- Term Life Insurance
- Permanent Life Insurance
Term life insurance is temporary coverage offering life insurance protection for a set number of years.
You may be able to choose a Policy Term (duration) of 10, 15, 20, 25, 30, 35 or 40 years.
If you die during the term, the death benefit is paid out to your beneficiary. If you outlive the policy term, the coverage ends and there is no payout of any benefits.
Permanent life insurance lasts your entire lifetime, builds cash value inside the policy over time from which you may take a loan, and pays out a death benefit upon your death.
Since term life provides pure protection, only a death benefit and no investment feature, it costs a lot less than permanent life insurance.
In fact, permanent life insurance can cost up to 5 to 10 times more for the same amount of life insurance compared to the cost of term life insurance.
So, if you need life insurance for 30 years or less, term life may offer the most affordable option.
Learn more about different types of life insurance policies.