Question:
❓What’s the main difference between term and permanent life insurance?
A) Term insurance is cheaper and permanent is more expensive
B) Term lasts for a set period, permanent lasts for life
C) Permanent builds cash value, term doesn’t
D) All of the above
Answer:
✅ D) All of the above
All three are true—that’s why the answer is “all of the above.” Term and permanent life insurance differ on price, how long they last, and whether they build cash value.
| Term | Permanent | |
|---|---|---|
| How long it lasts | A set period (10, 20, or 30 years) | Your whole life |
| Cost | Cheaper | More expensive |
| Cash value | None | Builds cash value you can use |
Think of term as renting protection—great for temporary needs like covering a mortgage or replacing income while the kids are young, but once the term ends, so does the coverage. Permanent is like owning it: lifelong coverage plus a cash value you can borrow against for emergencies, opportunities, or retirement income.
Trying to figure out which one actually fits your family? The Which Insurance Is Right for You? course walks through whole life vs term in plain English.
