What is the difference between term and permanent life insurance?

Term life insurance is a type of insurance policy that provides coverage for a specific period of time, usually for 1 to 30 years. If the insured person passes away within that term, their beneficiaries will receive a death benefit. Term life insurance typically has lower premiums than permanent life insurance policies. Permanent life insurance is a type of insurance policy that provides coverage for the entire life of the insured. It also builds cash value over time that can be used to borrow against in the future. Unlike term life insurance, which does not have cash value, permanent life insurance allows policyholders to accumulate wealth over the duration of the policy. In Texas, both term and permanent life insurance policies are regulated by the Texas Department of Insurance, which requires that insurers provide a basic level of coverage in order to be licensed to sell life insurance in the state. While both types of life insurance are beneficial in their own ways, it is important to understand the difference between them in order to determine which would be best for your particular needs.

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What is the difference between term and permanent life insurance?

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