What is the difference between term and permanent life insurance?

Life insurance is an important part of many financial plans in North Carolina. One way to get life insurance is to purchase a policy from an insurance company. There are two main types of life insurance policies: term life insurance and permanent life insurance. Term life insurance is a type of life insurance that provides coverage for a specific period of time. This type of policy is usually less expensive than permanent life insurance, and it is a great choice for someone who only needs coverage for a certain period of time, such as for a loan or a mortgage. Once the term life policy expires, the insured is no longer covered and must purchase a new policy if they want to renew their coverage. Permanent life insurance is a type of life insurance that provides coverage for the entire life of the insured. This type of policy can accumulate a cash value that can be used at the policyholder’s discretion. Permanent life insurance is more expensive than term life insurance because it does not expire. Both term life insurance and permanent life insurance can be used to provide coverage in the event of an untimely death. Permanent life insurance provides more options due to its cash value and coverage for the life of the insured. Ultimately, the choice between term and permanent life insurance depends on the individual’s financial needs and goals.

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What is the difference between term and permanent life insurance?

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