Permanent life insurance is life insurance that provides you with lifetime protection, pays out a death benefit, and builds some cash value inside the policy over time from which you may take a loan.
However, permanent life insurance usually cost up to 5-10 times more for the same amount of life insurance compared to prices for term life insurance.
Term life is temporary life insurance that provides coverage for a set period of time.
The policy term is the duration of your term life plan. Depending on your age and health you may be able yo choose a policy term of 10, 15, 20, 25, 30, 35 or 40 years.
The shorter your policy term, the lower your annual cost of life insurance.
Term life lasts for the duration of your policy term. If the insured dies during the term, the death benefit is paid out. If the insured outlives the policy term, the life insurance coverage ends, with no payout of death benefits.
Term life is pure protection, providing only a death benefit, not any cash value inside the policy.
Term life insurance is so much cheaper than permanent life insurance (allowing you to afford a lot more life insurance protection) because it is temporary, you may outlive your policy, and it does not build any cash value.
Learn more about term life insurance vs permanent life insurance.