What is the difference between term and permanent life insurance?

Life insurance is an important part of many financial plans. Understanding the differences between term and permanent life insurance can help you make a well-informed decision. Term life insurance is a type of life insurance that is temporary and covers a specified period of time, usually lasting anywhere from one to twenty years. Term life insurance is designed to provide coverage for a set period of time and, in the event of death during that time, pays out a death benefit to the designated beneficiary. Permanent life insurance, on the other hand, is a type of life insurance that is designed to provide lifelong coverage. Permanent life insurance offers more financial flexibility than term life insurance, since a portion of each premium payment goes into savings and can be withdrawn or borrowed against in the future. Also, unlike term life insurance, permanent life insurance does not expire or require additional premiums, so coverage will remain in place until the policyholder passes away. Overall, the main difference between term and permanent life insurance is the length of coverage. Term life insurance is designed to provide coverage for a set period of time, while permanent life insurance is designed to provide lifelong coverage. Additionally, permanent life insurance allows for more financial flexibility, since it has an investment component that lets you access a portion of the savings. Knowing these differences can help you make the right decision for your financial needs in Minnesota.

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What is the difference between term and permanent life insurance?

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