Term vs Permanent Life Insurance

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term vs permanent life insurance

Are you considering life insurance? Many Americans may forgo this coverage because they are young and healthy. In reality, life insurance is just as important for a 25-year old as it is to a 50-year old! The difference is pricing: it is much cheaper to purchase life insurance as a 25-year old than a 50-year old. The decades-old debate is term vs permanent life insurance: which is the best option for most people.

Term life insurance: Exactly as it says, term life is coverage for a “term” or period of your life (whether 5 or 30 years). Your rates stay the same during the specified term and then increase yearly after. Term life insurance does not build any cash value, but the rates are much lower that permanent insurance. For most people, term life insurance makes the most sense by providing a high amount of coverage for a relatively low price.

Permanent life insurance: This life insurance is “permanent” and provides coverage at a fixed priced for your entire life, or as long as you choose to keep the policy.  Permanent life insurance has many other product categories such as whole life, universal life and variable life. These life insurance products generally have a cash value accumulation over time.  The trade-off is a much higher price for an equivalent coverage amount.

So, which type of life insurance is right for you?  In general, we recommend term life insurance for our clients. Term life insurance is inexpensive, simple to quote and purchase, and provides the high level of coverage that most people need for the best price.

If you need a quote for term life insurance, contact Safeguard Insurance for a no-obligation quote. Or visit our term life insurance page and get an instant quote online. The quote is anonymous and requires very little personal information.

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