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Life Insurance
Vistaplan Blog

Read the Vistaplan Financial Group blog: Universal Life Insurance, Term Insurance, Disability Insurance, Critical Illness Insurance, Super Visa Insurance.

Posted: 14 Apr '18

Why Choose Term Life Insurance Over Permanent Life Insurance?

There are two main types of life insurance: universal life insurance and term life insurance. Understanding the differences between the two types of insurance will help you purchase the right amount of coverage for your family and prevent future regrets. Below, we'll take a closer look at the differences between the two types of policies as well as the advantages and disadvantages of each.

Permanent Life Insurance

Permanent life insurance provides coverage for your entire life. There are several types of permanent life insurance policies -- such as Whole Life and Universal Life -- which are designed to protect the insured for as long as the policy is in effect. Permanent life insurance policies typically have an investment component (cash value) that increases the longer you pay into the policy. This investment can be cashed in or borrowed against as needed.

Term Life Insurance

Term life insurance provides protection for a set period -- such as 10, 20, or 30 years. Unlike permanent life insurance, term life insurance is not designed to cover you for your entire life. Term life policies can, however, be renewed once the initial terms are over. Also, unlike permanent life insurance, term life insurance has no investment component. This means the policy will not accumulate a cash value over time.

Permanent vs. Term Life Insurance: Which One Should You Choose?

Both types of life insurance pay out for death claims and provide coverage as long as the policy is in effect. There are, however, several good reasons to consider purchasing a term life policy over a permanent life policy. For one, term life premiums are typically lower than permanent life premiums. Another benefit of term life policies is that they can be converted to a permanent policy if you or your family's needs change. A permanent life policy, on the other hand, cannot be converted to term life policy.

Choosing a life insurance policy is one of the most important decisions you'll make for your family. Contact us today to discuss your needs and whether a term life insurance policy or a permanent life insurance policy is right for you.


About the Author - David Motkoski

David Motkoski—At the Helm of Vistaplan Financial Group

The team at Vistaplan is led by David Motkoski, a well-respected insurance adviser to hundreds of business and individual clients. David has 30+ years of experience in this industry helping clients understand their life and disability insurance, office overhead, critical illness, long term care, and accident insurance. David’s focus has been medical doctors, dentists and business owners who are concerned with having the right coverage to provide for their family or business and protecting their income

David is an independent broker offering policies with Manulife, ivari and RBC to name a few. Vistaplan Financial Group has clients dating back to 1983 and they stay loyal with David because of the strong relationships he builds.