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

Term life insurance and permanent life insurance are two common types of life insurance policies, differing in terms of coverage duration and benefits. Term life insurance provides coverage for a specified period, typically 10, 20, or 30 years, while permanent life insurance covers you for your entire lifetime. Term life insurance offers a death benefit in the event of the policyholder's death during the specified term, whereas permanent life insurance offers a death benefit as well as a cash value component that can grow over time, serving as an investment vehicle. Permanent life insurance policies also accumulate cash value tax-deferred and may offer options to access this value while alive. Term life insurance is generally more affordable as it provides temporary coverage, while permanent life insurance offers lifelong protection with the potential for cash value growth and added financial security.