Permanent or Term Life Insurance, Which Is Best?
Life insurance ensures your family is protected. It offers peace of mind: your loved ones will be safely supported. But how do you choose between term and permanent life insurance? It depends on your budget, how long you need the coverage and your long-term plans.
Consider your insurance goals
Term life insurance is simple to buy, low-cost and affordable. This budget- friendly option provides coverage for a specified time period, usually 10, 20 or 30 years. The premiums are guaranteed for that duration.
It’s great for short-term protection, such as your mortgage, income replacement or coverage for a child throughout the learning years. Ask your Carte Financial Advisor whether this coverage will work well for your needs.
Generally, the initial premiums are much lower compared to permanent life insurance. At the end of the specified term, the policy either renews at a much higher premium or it terminates. In addition, most term insurance policies can also be converted to permanent insurance without any evidence of insurability.
Permanent insurance offers more comprehensive, lifetime coverage. It’s initially a bigger financial commitment, but the higher premiums remain stable. They will never change as the years go by.
It also has a lot more features. You can use permanent insurance to help build your family’s wealth and offer long-term protection to vulnerable loved ones.