Term Life or Permanent Life?

If you're unsure whether term or permanent life insurance is right for you, we can help. Here are the questions you must ask yourself to decide which type of policy suits your needs.

• What is your budget? How much you can afford to spend for life insurance protection will affect whether term life insurance quotes are right for you. If you are looking for a lot of coverage on a tight budget, term life is the way to go. However, if you can afford to spend a little more initially, permanent life will save you money in the long run.
• What are your intentions? Some people just want a basic life insurance policy to care for their dependents in the event of their death. If that's the case, term life insurance quotes are probably most appropriate. However, if you're interested in using your policy as an investment vehicle and a wealth-building tool, only permanent life can do this because it accrues cash value over time.
• Do you need to supplement coverage? If you already have life insurance coverage, you might still be in the market for term life insurance quotes to augment an existing policy when you have added financial obligations. Taking on a mortgage, sending a child to college, or adding any other kind of major debt to your family's plate might warrant supplemental coverage.
• How important is a lifetime of protection? Term life insurance quotes are best for those who have a temporary need for life insurance protection. If, on the other hand, you are looking for a lifetime of protection with premiums that never increase, a permanent life policy might be your best bet.
• Do you want tax-deferred growth? Permanent life policies often enjoy tax-deferred growth, which means you can save up a great deal of money, tax-free, with this type of policy. Term life insurance quotes cannot offer you this same benefit because term policies do not accumulate cash value.
• Can you afford to pay higher premiums as you age? When you get term life insurance quotes, you will be getting a policy whose premiums will increase as you get older (if you choose to renew). If you know you will still need life insurance protection in the future and are unsure if you will be able to manage high premiums, you might consider permanent life instead. Make sure to read the term life facts for a better understanding of term life.