Term vs. Permanent Life Insurance: Which One is Right for You?
When it comes to life insurance, choosing between term life insurance and permanent life insurance can be overwhelming. Both offer financial protection for your loved ones, but they serve very different purposes. What many people don’t realize is that around 98% of term policies never pay out because the policyholder outlives the term. This makes selecting the right coverage crucial—not just for peace of mind, but for your long-term financial well-being.
The problem? Most insurance agents only focus on selling policies, not on your overall financial picture. That’s where Health Meets Wealth Insurance comes in. Our team goes beyond just selling policies—we take the time to understand your unique needs, financial goals, and future plans to ensure you get the right coverage.
Understanding Term Life Insurance
Term life insurance provides coverage for a set period—typically 10, 20, or 30 years. If you pass away during that time, your beneficiaries receive a death benefit. If you outlive the policy, it expires with no payout.
Key Features of Term Life Insurance:
Lower Cost – Affordable premiums make it easier to get high coverage amounts. Temporary Coverage – Ideal for protecting financial obligations like mortgages, income replacement, and college tuition.X No Cash Value – This policy does not build savings or investment value.
X Most Policies Expire Unused – 98% of term policies never pay out because people either outlive their term or let the policy lapse.
X Most Policies Expire Unused – 98% of term policies never pay out because people either outlive their term or let the policy lapse.
Who Should Consider Term Life Insurance?
- Families on a budget – Provides maximum coverage at an affordable rate.
- Homeowners with a mortgage – Ensures your loved ones aren’t left with unpaid debts.
- Business owners with loans – Protects your business from financial burdens if something happens to you.
Understanding Permanent Life Insurance
Permanent life insurance lasts a lifetime and includes a cash value component that grows over time.
Key Features of Permanent Life Insurance:
Lifetime Protection – Your policy never expires as long as premiums are paid. Builds Cash Value – A portion of your premium is invested, growing over time. Higher Premiums – More expensive than term, but structured properly can provide long-term benefits. Used for Estate Planning – Helps protect wealth, pay estate taxes, and create a financial legacy.Who Should Consider Permanent Life Insurance?
- Those who want lifelong coverage – Guarantees a payout no matter when you pass.
- High-net-worth individuals – Used for estate planning and wealth transfer.
- Business owners with long-term financial needs – Useful for buy-sell agreements and executive benefits.
- Those looking for a tax-free income in retirement – Allows you to borrow against the cash value for financial needs.