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What is the difference between term and permanent insurance?

Affordable term life insurance rates that have dropped more than 40 percent in 10 years make this type of insurance attractive to older adults who don't have permanent insurance already. Choose the cheapest term life insurance that will fully protect your family.

Affordable term life insurance is purchased for a certain time period, 10 years, 20 years, 30 years, etc. The term insurance premium is paid over the time covered. During the term of your life insurance policy, if you die, your beneficiaries will receive the face value of the policy. If your term life insurance policy ends or terms out, meaning for example you've hit year 21 of the 20-year level, you may keep the term life insurance policy but not at the same rate.

By term insurance contract when the 20th year ends, so does the guaranteed 20-year level premium. So you may keep the term life insurance in year 21 but the term insurance rate will go up five to 10 times the original premium. Most people will not pay the term life insurance premium. The term insurance policy will lapse - no harm no foul.

In contrast to term insurance, permanent insurance will cost more but builds up a cash value that can be borrowed against or used for retirement. With more affordable term life insurance rates dropping more than 40 percent in the last 10 years, term insurance is often seen as the best value for older adults and those who have health issues and just buying life insurance. Get your term life insurance quote today by emailing me, or calling at 1.800.799.0903 so you can protect your family tomorrow.

Jim O'Connor, Life Insurance Agent
PO Box 832, Tiburon CA 94920
Tel: 1-800-799-0903   Fax: 415-435-2870   Email: info@term22.com
Copyright 2011 Jim O'Connor, Life Insurance Agent