What is the difference between term and permanent insurance policies?

The main difference between term and permanent insurance policies is their duration. Term life insurance policies are temporary and provide coverage for a specific amount of time, usually ranging from five to thirty years. Permanent insurance policies, on the other hand, provide coverage for your entire life and are meant to last until you die. In addition to duration, there are other notable differences between the two policies. Term life insurance policies typically provide higher monetary benefits than permanent life insurance policies, as the amount you pay for a term policy is usually lower than for a permanent policy. However, premiums for permanent life insurance policies may be more expensive, but the policy may build up value in a cash account or provide additional benefits like long-term care or disability riders. In Washington, insurance regulations require that life insurance policies be issued in accordance with all applicable laws. This includes the insurance company following all guidelines, such as providing adequate coverage and offering competitive rates. The Insurance Commissioner monitors life insurance companies to ensure they are abiding by the state’s insurance regulations. Additionally, consumers should compare policies and read the associated terms and conditions to make sure the one they choose meets their needs.

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