A Term Life Insurance policy covers you for a stated period—typically 10, 15, 20 or 30 years. Because the Insurance company's liability is limited to a specific period, Term is the most economical kind of Life Insurance.

A Permanent policy lasts as long as you pay the premiums. Permanent policies can also have a cash value. Part of the premium you pay covers your Insurance, and some of it goes into the policy's cash value.

Permanent Insurance is much more expensive than Term for the dollar amount of coverage. So, as you consider the two you'll want to ask yourself some key questions:

1. How important is life-long coverage to you and your family? For many people, a 20- or 30-year Term policy will meet their long-term Insurance needs. For example, it could protect a young family through the years when the kids (and their expenses) are growing—up to the point when they graduate from college and go out on their own.


2. Can you afford permanent Life Insurance? Premiums for the same dollar amount of Life Insurance can be two to ten times higher than a Term Life Insurance policy.


3. How important is the cash value? As Insurance for Dummies author Jack Hungelmann writes, people get "swayed by the lure of cash value of the policy... they buy a cash value policy with less death protection than they need in order to have some investment—something to show for it in the end when they don't (unlike the rest of us) die." His advice, and ours, is "never trade critical protection for less-important investment opportunities."

SelectQuote offers a new kind of Term Life Insurance called Return of Premium (ROP). It is priced between Term and Permanent rates. Ask a SelectQuote Licensed Agent for details. Just call 1-800-977-5173.

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