Now that you understand the difference between the two types of life insurance – Term and Perm(anent) – the million dollar question is, which type of insurance is better?

The answer is…it’s not that simple. Your life is constantly changing and that means the amount and type of insurance that you need are going to change with you. Each type of insurance solves very different problems. You will need more term than permanent in the earlier years of your life and more permanent than term (if any) later on in your life.

Term insurance is an extremely effective tool to protect your family from a premature death. It provides affordable protection to cover a temporary, usually large need or covers you for a specific time period.¬† Your potential to earn income is what your family’s plans are based on, and if you’re no longer here, your family’s plans will come to a screeching halt.

Permanent insurance is also an essential tool¬† to your planning, it provides you with guaranteed coverage for your entire life. It’s also great because you know exactly how much you’ll pay into the policy and is one of the most effective ways of paying for expenses at death (see the post, “Help! How Am I Going To Pay For These Gains??”)!

So, for me the question you ask yourself should never be term OR permanent. It should be how much term and how much permanent?


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