What are the advantages/disadvantages of term and permanent insurance?
There are pros and cons to buying both term or permanent (cash value) insurance. Each has advantages and disadvantages. One or the other or both may be appropriate to meet your insurance needs. Term Insurance The advantages of term policies include: 1. Term premiums are lower than those for permanent insurance so you get more insurance coverage for less money. This allows you to buy more coverage when you need it the most, such as when you have young children. 2. Because term provides insurance for a specific period of time, it is ideal for covering specific financial needs such as covering your life until your children are through college, until they are self-supporting, or covering your life until you pay off your mortgage. The disadvantages of term policies include: 1. Premiums increase every time a policy is renewed, so the cost of term insurance can become prohibitive as you near your late 50s and 60s. 2. Term life doesn’t provide a savings feature known as cash value. Term polici
