Term insurance provides coverage for a set period of time and normally only pays out if you die during that time. Term lengths normally range from five (5) to fifty (50) years, with the most frequent term length being twenty years. The amount and length of coverage depends on the insured age.


Permanent insurance provides lifelong protection as well as the ability to build up cash value tax-free. A permanent insurance coverage, unlike term insurance, will stay in existence as long as you continue to pay your premiums. Because these plans are structured and priced to be kept for a long time, they may not be the best sort of life insurance for you if you don’t have a long-term need for coverage.