What is the difference between term and permanent insurance policies?

Term and permanent insurance policies are two types of insurance policies available in California. A term life insurance policy is a policy that expires after a certain period of time, generally between one and 30 years in California. This type of policy allows for an individual to purchase a large sum of insurance for a smaller premium, as the policy does not remain in force for the insured’s entire life. Term life policies are often a good option for those looking for short-term coverage or a policy that covers specific goals like paying off student loans or providing income to dependents after the passing of a breadwinner. Permanent life insurance policies cover you for your entire life. This type of policy is more expensive than term, but it does not expire. Additionally, all permanent policies have a savings component that allows the policyholder to build up cash value over time. This cash value can be used for any purpose, such as to fund college tuition or retirement. Permanent life insurance policies are often best for those who want long-term coverage or need to replace their income after death.

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What is the difference between term and permanent insurance policies?

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