Permanent life insurance vs term life insurance

Compare term life insurance and permanent

Comparing different types of life insurance coverage

Many people often ask me: “Should I get a term life insurance policy or a permanent life insurance policy?”

That is a great question but the answer depends on what is the purpose of the coverage. In other words what are you looking to protect. In this blog post we’re going to over some concrete examples for each type of coverage.  

If you’d rather watch a quick video to learn the differences between term life insurance and permanent then just click below. 

Term life insurance in Florida

Term life insurance is a policy that will last for that time period. You can choose anywhere from 10-30 years and also based on your age they might limit it to less years. 

These types of policies are to cover a specific time period and after that the policy will lapse. However, most offer provisions to convert a part or entire policy by a certain year without proof of insurability! This means that no matter how your health might be in the future you can convert it to permanent coverage without any medical questions or exams. 

So, let’s go over some common reasons to get a term life insurance coverage. 

This is a term policy to cover the mortgage if the person passes away. Usually let’s say someone has a 30 year mortgage then they would get a life insurance policy for 30 years for the amount of the mortgage. This way, the family can continue living there because with the life insurance they can pay off the mortgage. 

Income Protection

This is a term policy to cover the income if the person passes away. Usually let’s say someone has a 20 years left to work and they make $50,000 a year. This person, would get a $1,000,000 in life insurance to cover the projected loss of income if they pass away before those 20 years are up. 

Buy-Sell Agreement

When a business is starting out finances might be in a tight budget but business continuation is an important aspect of securing the financial future of this business. A buy-sell agreement is a way for business partners to determine before hand a set amount they would sell their part to the other partners if they pass away. This helps avoid family turmoil within the business and allows for a smooth transition. A term policy is an affordable way of funding a buy-sell agreement in the state of Florida.

Permanent life insurance in Florida

Just how the name states this is a policy that is permanent, that is, as long as premiums are paid. Usually these last til age 100 or 120 depending on the policy. These are more costly than term policies but provide many advantages as well. 

Let’s go over some reasons why someone might want to get a permanent life insurance in Florida. 

Cash Value

As the years pass by, a permanent policy will build cash value. Of course, this depends on many factors but some reasons people like the cash value option is so they can use it in the future. 

For example many use it for:

Lock in rates

Many people don’t like surprises in the future. With a permanent life insurance policy, you can lock in the rate today. This way, your premiums won’t go up and your death benefit will remain the same. 

I hope this has been valuable inforamtion. For a personalized review of your life insurance needs in the state of Florida. Please click on Request Quote or Send us a message on Facebook messenger. Hope to hear from you soon. Remember, we do everything digitally, so you can be in the comfort of your home while we discuss the financial protection of your loved ones.

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Lorena Tomasini
Hello! I've been in the life and health insurance industry for over 10 years. Together with my mom, we run an insurance agency to inform individuals, families and small business owners about the power of life and health insurance. Hope these articles give you a different perspective.

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