Term life insurance provides coverage for a specific period of time, usually between 10 and 30 years. If the policyholder passes away during the term of the policy, their beneficiaries will receive a death benefit. If the policyholder outlives the term, the policy will expire and there will be no payout.

One advantage of term life insurance is that it is generally less expensive than permanent life insurance. This is because it only provides coverage for a limited period of time and does not build cash value like permanent life insurance.

Another advantage of term life insurance is that it is straightforward and easy to understand. There are no complicated investment options or cash value calculations to worry about, which can be appealing for those who prefer simplicity.

However, one disadvantage of term life insurance is that it does not provide coverage for the policyholder’s entire life. This means that if the policyholder passes away after the term of the policy expires, their beneficiaries will not receive a death benefit.

Permanent life insurance, on the other hand, provides coverage for the policyholder’s entire life, as long as the premiums are paid on time. Permanent life insurance also has a cash value component, which grows over time and can be used for a variety of purposes, such as paying for future premiums, borrowing against for emergency expenses or as a source of retirement income.

One advantage of permanent life insurance is that it provides lifelong coverage, which can be reassuring for those who want to ensure that their loved ones are taken care of after they pass away. The cash value component of permanent life insurance can also provide financial benefits, such as tax-deferred growth and the ability to borrow against the cash value if needed.

However, one disadvantage of permanent life insurance is that it is generally more expensive than term life insurance. This is because it provides lifelong coverage and has a cash value component, which increases the risk for the insurance company.
Another disadvantage of permanent life insurance is that it can be complex and difficult to understand. There are different types of permanent life insurance, such as whole life and universal life, each with their own unique features and benefits.

When choosing between term and permanent life insurance, it is important to consider your individual needs and budget. If you only need coverage for a specific period of time, such as until your children are grown or your mortgage is paid off, then term life insurance may be the best option. If you want lifelong coverage and the financial benefits that come with a cash value component, then permanent life insurance may be a better choice.