Which Is Better Permanent Or Term Life Insurance
3 Replies
CA Rakesh Ishi
(Working at Private Company)
(8637 Points)
Replied 01 May 2023
Deciding between permanent and term life insurance depends on your individual needs and preferences. Here are some factors to consider:
Term life insurance:
- Provides coverage for a specific term (e.g. 10, 20 or 30 years)
- Generally has lower premiums than permanent life insurance
- Provides coverage only for the term of the policy and has no cash value
- Is suitable for people who want coverage for a specific period (e.g. until their children are grown or their mortgage is paid off)
Permanent life insurance:
- Provides coverage for your entire lifetime
- Has higher premiums than term life insurance
- Has a cash value component that grows over time
- Allows you to borrow against the cash value or use it to pay premiums
- Is suitable for people who want lifelong coverage and want to build savings in addition to the death benefit
Ultimately, the choice between permanent and term life insurance depends on your individual circumstances, financial goals, and budget
Megha S
(14 Points)
Replied 06 May 2025
It depends on your needs. If you want something affordable with a big cover, term life insurance is better. It gives a high sum insured at a low premium. But if you want lifelong coverage and savings together, then permanent life insurance might work for you, though it costs more.
Personally, I chose Policybazaar term insurance because I only wanted to secure my family financially in case something happens to me. The premiums were easy on my budget, and I got to compare many options in one place. I didn’t need investment returns, just peace of mind.
In my opinion, if you’re young or have dependents and want maximum cover at minimum cost, term life is the smart choice. Just understand your goal first before choosing between term and permanent.
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