What is the difference between term life insurance and permanent life insurance?

Term life insurance and permanent life insurance are two types of life insurance policies that differ in several key aspects. Term life insurance provides coverage for a specified term, usually 10, 20, or 30 years, and pays a death benefit only if the insured passes away during the term. It is generally less expensive and offers temporary protection to meet specific needs such as paying off a mortgage or supporting dependents. On the other hand, permanent life insurance provides coverage for the insured's entire lifetime. It accumulates a cash value over time, allowing policyholders to access funds while they are alive. Permanent life insurance offers both death benefit protection and a savings component, making it more expensive compared to term life insurance. However, it provides lifelong coverage and can be an investment tool for wealth accumulation or estate planning. Ultimately, the choice between term and permanent life insurance depends on individual circumstances, financial goals, and the need for long-term coverage or temporary protection.