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What's better? Term or permanent insurance?

Neither term nor permanent insurance is necessarily “better” than the other. The real question is: “Which type of policy is right for you?” Also, in some cases, a blend of permanent and term insurance is the best way to go.

As you may know, life insurance policies generally fall into two broad categories — permanent and term. Permanent insurance combines the benefits of traditional financial protection with a savings component in the form of cash value. Term insurance provides coverage for a specified period of time.

Each type of policy has its advantages. Permanent insurance, such as our ISP and ISWL policies, offers lifelong coverage at a fixed premium. In addition, ISWL accumulates cash value that can be used to fund needs during their lives. ISP also accumulates cash value, which can fluctuate based on the performance of the chosen sub-accounts. Term insurance, like our Level Term Life, generally offers a lower initial premium than comparable permanent plans. The downside is that term policies must be renewed at the end of their terms, at higher premiums. Also, term does not build any cash value.