TERM ROP

20 Jun TERM ROP

Having a hard time understanding confusing and complicated life insurance policies? Let us break it down for you. In a broader sense, there are two types of life insurance policies: permanent life insurance and term life insurance.

What is Permanent Life Insurance?

• Permanent life insurance is a type of life insurance that can stay in force for your entire life, as long as you pay your premiums in full.
• Permanent life insurance usually, but not always, builds cash value for you that you can use for expenses later in life.

What is Term Life Insurance?

• Term life insurance is only in force for a specified amount of time; usually, 10, 15, 20, or 30 years, depending upon your contract.
• At the end of the term, your coverage expires, and you will need to either convert your policy to a permanent life insurance plan (if available) or purchase a new policy for a new term.
• To counter the drawback of an expiration date, you will find that term life insurance is somewhat less expensive than permanent life insurance.