Catholic Financial Life Blog

Term or Permanent Insurance… How Do I Decide?

Posted by Catholic Financial Life

Oct 8, 2018 10:50:54 AM


When shopping around for life insurance, it can sometimes be hard to decide which type will best fit your needs. Life insurance is broken down into two major groups: term and permanent life insurance. You may be thinking, what are the differences between the two? Let’s find out!

Term Life Insurance

If you’re looking for affordable coverage, Term Life Insurance may be right for you.

Term Life Insurance provides coverage for a certain period of time; typically in 10-, 20- or 30-years. Your beneficiary would only receive the death benefit if the insured dies during the policy term. Once the term is up, your coverage would end unless you renewed your policy or purchase a new one.

The cost of Term Life Insurance is generally much lower than Permanent Life Insurance, making it the most affordable option.

Many people who are just starting out or are looking to supplement an already established permanent policy decided to purchase Term Life Insurance.

Permanent Life Insurance

Permanent life insurance is just how it sounds… it’s permanent. It will cover you for your entire lifetime. With this type of policy, your premiums will likely be more than most term policies. However, premiums will remain the same throughout the life of the policy.

Two primary types of permanent life insurance are whole and universal life insurance policies. Whole Life Insurance policies offer level premiums and guaranteed cash value, whereas Universal Life Insurance policies have flexible premiums.

Permanent Life Insurance may be right for you if you want your premiums to remain the same, don’t want to outlive your policy and want to ensure you have a guaranteed death benefit for your beneficiaries.

To learn more and find out which type of life insurance is truly right for you, contact a Catholic Financial Life Advisor –