Term life insurance is designed to protect your family or business for a specific period of time. Common term lengths are 10, 15, 20, and 30 years. If you pass away while the policy is in force, your beneficiaries receive a tax-free death benefit. If the policy term expires and you are still living, the coverage ends.

Term life insurance is generally the most cost-effective way to secure a meaningful amount of coverage. For that reason, it is often the first type of life insurance people consider when they are looking to protect dependents, replace income, or cover a specific financial obligation.

Who typically benefits from term coverage?

Term life insurance tends to be a practical fit for people who need significant coverage at the lowest available cost, those protecting a defined financial obligation - such as a home mortgage, a business loan, or an income stream that supports a family - and individuals who are still in the process of building wealth and want coverage during those years.

The right coverage amount and term length depends entirely on your specific circumstances. There is no universal formula. A conversation with a licensed advisor is the most reliable way to determine what makes sense for your situation.

Permanent life insurance provides coverage that is designed to last a lifetime. As long as the policy premiums are maintained, the coverage remains in force. Unlike term insurance, permanent life insurance policies also build cash value over time - an asset within the policy that can be accessed during the insured's lifetime.

Permanent life insurance is used for a wide range of financial purposes beyond basic income replacement, including estate planning, wealth transfer, business continuity, and long-term financial strategy.

Types of permanent life insurance

Permanent life insurance is not a single product - it is a category that includes several distinct structures. The most common types include:

• Whole Life Insurance A traditional permanent structure with guaranteed premiums, a guaranteed death benefit, and guaranteed cash value growth.
• Universal Life Insurance A flexible premium structure that offers adjustable death benefit and premium options over the life of the policy.
• Indexed Universal Life Insurance (IUL) A form of universal life that links cash value growth potential to a market index, with downside protection built into the structure.
• Survivorship Life Insurance A policy that covers two lives - typically spouses or business partners - and pays the death benefit upon the second insured's passing. Commonly used in estate and wealth transfer planning.

Is permanent life insurance right for you?

Permanent life insurance is a sophisticated financial instrument. Whether it belongs in your plan - and which type fits - depends on your goals, your time horizon, your current financial picture, and how it interacts with the rest of your assets and strategy.

The types listed above vary significantly in how they are structured, how premiums are paid, and how cash value accumulates. Each has appropriate use cases and important tradeoffs. The best way to understand whether permanent life insurance makes sense for you is a direct conversation with an advisor who can evaluate your situation.