What is the difference between term and permanent insurance policies?

Term insurance policies are temporary life insurance policies that provide coverage over a set period of time. It is typically the most affordable type of life insurance because it generally has lower premiums and provides coverage for a specific time frame. Once the policy expires, the coverage also ends. Permanent insurance policies are more costly than term insurance policies, but provide life-long coverage. They also have the advantage of building up a cash value over time, which can be borrowed against or used for other purposes. With this type of policy, you can also choose to change the death benefit over time if your needs change. In the end, it comes down to choosing the right policy for you. Term insurance policies are good for those who want life insurance for a set amount of time, while permanent insurance policies are best suited for those who want lifelong coverage and have the ability to pay the higher premiums.

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What is the difference between term and permanent insurance policies?

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