What is the difference between term life insurance and permanent life insurance?

Term life insurance and permanent life insurance are two distinct types of life insurance, each with its own characteristics and benefits. Term life insurance provides coverage for a specified period, typically ranging from ten to thirty years. It pays a death benefit to the beneficiaries if the insured individual passes away within this term. If the term expires and the insured is still alive, the policy does not have any cash value and simply terminates. Term insurance is often more affordable, making it an attractive choice for individuals seeking temporary coverage, such as for a mortgage or the duration of raising children. It allows policyholders to secure a substantial death benefit for a lower premium during their working years when financial responsibilities may be higher. On the other hand, permanent life insurance offers coverage for the entire life of the insured, as long as premiums are paid. This type of insurance accumulates cash value over time, which can be borrowed against or withdrawn if needed. There are several types of permanent life insurance, including whole life, universal life, and variable life, each with different features and flexibility regarding premium payments and death benefits. Permanent insurance is typically more expensive than term insurance due to its lifelong coverage and the cash value component. In summary, the primary difference between term and permanent life insurance lies in the duration of coverage and the potential for cash value accumulation. Term life insurance is suitable for temporary needs, whereas permanent life insurance is designed for lifelong protection with additional long-term financial benefits. For specific products and options offered by Ameritas Life Insurance Company, it may be helpful to consult their current web page for detailed information.