Term and Permanent Insurance

Flagship products of the insurance industry.

Term insurance is often used to cover a temporary need, such as a debt or mortgage that will run for a specified period of time. Term insurance is priced to cover the risk associated with the insured’s death in the current year.  The insurer promises to pay the insured’s beneficiary if the insured dies within a specified period. If the insured dies outside of the specific period, no benefit is payable. Because the price of term insurance is based on the likelihood of death at a particular age, the advantage is that it is relatively inexpensive for younger adults. The older an individual gets, however, the more expensive term insurance becomes.

Permanent insurance is designed to be in force for the individual’s entire life. While the premiums that an individual is charged for term insurance increase every year, the premiums for a whole life insurance plan are designed to stay level for the individual’s entire life.

There are advantages to both term and permanent insurance policies. The most important consideration is not what type of plan an individual chooses, but rather, how much coverage is adequate. The Burak Hannon Brojde Group can help you with these important decisions.