Term versus Permanent

 

Term life insurance provides coverage for a certain time period. It’s often called “pure life insurance” because it’s designed only to protect your dependents in case you die prematurely. If you have a term policy and die within the term, your beneficiaries receive the payout. The policy has no other value.


 

When you shop for term life:

  • Choose a term that coincides with the years you’ll be paying the bills and want life insurance coverage in case you die early.
  • Buy an amount your family would need if you were no longer there to provide for them. The payout could replace your income and help your family pay for services you perform now, such as child care.

Ideally, your family’s need for life insurance will end around the time the term expires: Your kids will be on their own, you’ll have paid off your house, and you’ll have plenty of money in savings to serve as a financial safety net.

Term with living benefits

Living Benefits

You should not have to die before someone benefits.