Life Insurance
Term vs. Permanent Life Insurance
There are two main categories of life insurance—term life insurance and permanent life insurance. Each type offers distinct features and benefits suited to different financial goals and personal circumstances. Working with an experienced life insurance agent is crucial when choosing coverage for you and your loved ones. Contact FLM Insurance LLC in Jackson, Mississippi, to learn about your life insurance options.
Term Life Insurance
Term life insurance is designed to offer coverage for a specific period, or term, typically ranging from 10 to 30 years.
Term life insurance premiums are generally lower than those of permanent life insurance policies, making it accessible for individuals looking for cost-effective coverage.
You choose the term length (e.g., 20 years), and your coverage remains in effect if you continue to pay premiums. Once the term expires, you may have the option to renew the policy but often at a higher rate based on your age and health status.
If you die during the term, your beneficiaries can apply to receive a lump-sum payment (death benefit) from the insurance company, which they can use for any reason.
Permanent Life Insurance
Permanent life insurance is designed to provide coverage for your entire life if premiums are paid. It combines a death benefit with a savings component that accumulates cash value over time.
A portion of your premium payments goes into a cash value account, which may grow in value over time. You can borrow against this cash value or withdraw funds according to the policy’s rules, although it may affect your policy’s death benefit and incur taxes and fees.
Premiums for permanent life insurance are generally higher than those for term life insurance, reflecting the lifelong coverage and cash value accumulation.
Some permanent policies offer flexible features, such as adjusting premiums, coverage amounts or accessing the cash value for financial needs like college tuition or retirement income.
How to Get Life Insurance
Consulting with a licensed insurance professional can help you assess your options and find the policy that aligns with your long-term financial strategy.
Contact FLM Insurance, LLC for personalized life insurance quotes.