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Life Insurance: Term vs Permanent

Insurance can protect you and your loved ones from financial loss or hardship. In case of death, your life insurance gives your beneficiary a tax-free lump-sum payment. There are two main types of life insurance: term and permanent. We’ve outlined the main differences between them below. ​

Keep in mind that the type of insurance you need will vary according to your life stage and your goals. 

Term Life Insurance: Protection for the things which you can define an end date. Ideal for your temporary needs like mortgage/debt protection, income replacement or children’s education. Term insurance covers you for a specific amount of time until it’s renewed for another term. It normally has lower premiums than a permanent life insurance. 

Permanent Life Insurance: Long-term protection for your entire life. Ideal for things you cannot put an end date on. Permanent insurance costs are usually guaranteed to maintain a level premium. Some plans even have a linked investment component that allows you to grow the policy and earn interest over time.

Speak with a financial advisor to understand what the best protections strategy for you and your family. 

Download our table with the main differences between these insurance policies.

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