Life insurance can help provide financial support to beneficiaries after the insured person dies. Two broad options are term life insurance and permanent life insurance. Understanding how they differ can help you choose coverage that matches your responsibilities, budget, and long-term goals.

Term life insurance provides coverage for a specified period, such as 10, 20, or 30 years. It is often used to protect temporary financial obligations, including a mortgage, education expenses, income replacement, or outstanding debt.

If the insured person dies while the policy is active and its requirements have been satisfied, the insurer generally pays the death benefit to the named beneficiaries. Coverage normally ends when the term expires unless the policy is renewed, converted, or replaced.

Permanent life insurance is designed to remain active for life when required premiums are paid and policy conditions are met. Certain permanent policies may also build cash value. Premiums are commonly higher than those for comparable term coverage because permanent insurance includes additional features and potentially lifelong protection.

Cash-value growth, fees, surrender charges, guarantees, and investment risks vary considerably by policy type. Illustrations should not be treated as promises when they include non-guaranteed assumptions.

Before buying, calculate how much coverage your dependants may need and how long the financial need is likely to continue. Compare premiums, exclusions, conversion options, guarantees, and the insurer’s financial strength.