Term vs. permanent life insurance, simply explained

Term life insurance covers you for a set number of years, such as 10, 20 or 30. If you pass away during that time, your beneficiaries receive the payout. It is usually the most affordable way to get a large amount of coverage.

Permanent life insurance lasts your whole life and can build cash value over time. It costs more, but it does not expire.

Many families choose term coverage for the years when they have the biggest obligations, like a mortgage or young kids. Others want permanent coverage for lifelong needs or final expenses.

The right amount depends on your income, debts and goals. It is worth working through the numbers before choosing.