Choosing The Right Life Insurance Policy: Term vs Permanent
Blog Entry - February 09, 2026
Learn the key differences between term and permanent life insurance and find the coverage that best protects your family, finances, and future.
Choosing a life insurance plan is an important step in protecting your family, finances, and future. However, choosing the right life insurance policy can be stressful and confusing. With multiple options available, many people find themselves choosing between term and permanent life insurance.
At Ansay & Associates, we help individuals and families understand their life insurance options so they can make confident, informed decisions. Below, we break down the key differences between term and permanent life insurance and how to decide which option is right for you.
Term Life Insurance
Term life insurance provides coverage for a specific period of time, most commonly 10, 20, or 30 years. If the insured passes away during the policy term, a death benefit is paid to the beneficiaries.
Benefits of term life insurance:
- Less expensive than other options. The lower premium allows you to put your income towards acquiring other assets (such as purchasing a home).
- Financial protection during key life stages (raising children, paying off a mortgage, in your prime working years, etc.)
- Term insurance rates are largely determined by the age bracket you fall in, and the premium increases as you grow older. This is why term life insurance is ideal for people in their prime.
Term life insurance is often used to replace income, cover a mortgage, pay off debt, or support children while they are financially dependent. It is a popular choice for young families and individuals looking for affordable life insurance coverage.
Permanent Life Insurance
Permanent life insurance provides coverage for your entire lifetime, as long as premiums are paid. In addition to a death benefit, permanent life insurance policies include a cash value component that grows over time.
Benefits of permanent life insurance include:
- Lifetime coverage that does not expire
- Accrues cash value that can be used during your life
- Can protect assets transferring to heirs
- Can protect your heirs from debt obligations or taxes
Permanent life insurance can be a strong option for those seeking long-term financial planning tools, tax-advantaged savings, or guaranteed coverage later in life.
Term vs Permanent: Key Differences
Term Life Insurance
- Coverage lasts for a set number of years
- Lower upfront cost
- No cash value
- Designed for temporary financial needs
Permanent Life Insurance
- Coverage lasts for life
- Higher premiums
- Builds cash value over time
- Designed for long-term financial security
Which Life Insurance Is Right for You?
The right life insurance plan depends on your age, health, financial responsibilities, and long term goals. Some individuals benefit from a combination of term and permanent life insurance to balance affordability and lifelong protection.
Why Work With Ansay & Associates?
As a family owned, independent insurance agency, Ansay & Associates works with multiple carriers to help you compare life insurance options and choose coverage that fits your life today and in the future.
We're here to answer your questions. Let's talk.
You Can Always Call Us Toll-Free at: 1 (888) 262-6729
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