What Is Term and Permanent Life Insurance?

Understanding the differences between term and permanent life insurance is crucial for making an informed decision that aligns with your financial needs and goals. Both types of insurance offer unique benefits, so assessing your situation and consulting with a financial advisor or insurance professional is essential.

The DRD Insurance Agency team can help you determine whether term or permanent life insurance suits your situation.

Term Life Insurance

Term life policies may provide coverage for a specific time, typically 10 to 30 years. If the insured person passes away during the term, the policy pays a death benefit to the beneficiaries. If the term ends and the insured is still alive, the coverage expires, and there is no payout.

Term life coverage usually has lower premiums compared to permanent policies. You pay premiums for a set period, and if you pass away during that time, your beneficiaries can apply to receive the death benefit.

Term policies may offer the option to convert to a permanent policy later, allowing you to secure coverage as your needs evolve.

Permanent Life Insurance

Permanent life policies may provide lifelong coverage if premiums are paid. It includes various types, such as whole life, universal life and variable life, each with unique features and benefits.

A portion of the premiums typically goes into a cash value account, which may grow over time. This cash value may be borrowed against or withdrawn according to the policy’s terms.

Depending on the type of permanent insurance, premiums may be fixed or flexible, allowing for adjustments based on your financial situation.

How to Get Covered

Contact DRD Insurance Agency in La Habra, CA, to learn about your life insurance options and get a personalized quote.