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

Temporary life insurance is also known as term life insurance and pure life insurance. Temporary life insurance has one component to the insurance policy: insurance. Temporary life insurance provides coverage to the insured for a set amount of years, normally a minimum of 10 years and a maximum of 30 years.

Permanent life insurance is also known as traditional life insurance, whole life insurance, cash value life insurance, ordinary life insurance, and straight life insurance. Permanent life insurance has two components to the insurance policy: insurance and a savings account. Permanent life insurance provides coverage to the insured normally up to age 100.

In general, temporary life insurance is less expensive than permanent life insurance due to the amount of components to the insurance policy and the amount of time an insured is covered.

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