Term life is the most popular and affordable type of life insurance. It provides coverage for a specific number of years, usually between 10-30 years. You make fixed monthly, quarterly, or annual premium payments to keep it active. If you pass away during the covered term, the pre-determined coverage amount is paid out in full. Almost all of our clients find that this type of policy is the best fit. Ideally, your family’s needs for coverage will end close to when your policy expires: your kids are through college, your mortgage is fully paid, etc.

However with term life you also have the flexibility to renew or convert at the end of the term if you need to. Permanent (whole life) insurance provides protection for life. The premium remains the same and coverage amount is guaranteed no matter how long you live. Since it never expires, the annual cost is significantly more expensive than term. There are several types of permanent life policies that provide added investment components, but these are more complicated to buy and come with additional fees and expenses. Unlike term, permanent life insurance requires a longer commitment. There is significantly less flexibility if your needs change.