Web Content Viewer


Infographic: Term vs. Permanent Life Insurance

Jan 25, 2021 3 min read

Key takeaways

  • Term life insurance provides temporary coverage at the most affordable prices.
  • Permanent insurance could grow in value and offer various other benefits.
  • The right kind—and amount—of coverage depends on your needs and life stage.


Shopping for life insurance? Chances are you’ve come across two main types:

  • Term life insurance

    can help protect your loved ones for a set number of years—say, until your kids are out of school. It’s usually the most affordable insurance you can buy (though it’s cheaper when you’re younger). And if you want your coverage to last longer—and do more—some term policies are convertible to permanent.
  • Permanent life insurance

    won’t expire as long as you keep paying the premiums. Some policies can grow in “cash value” due to an investment-like component—and ultimately enable tax-free loans or withdrawals*, or could even pay premiums for you. And if you die, it can help you care for children with special needs or elderly parents, or leave a legacy to your heirs.

Which kind of coverage is right for you? These eight questions can help you decide:



How much coverage?

No matter which type of life insurance you choose, you’ll need to figure out how large a policy to get. This will depend on both your financial goals and your budget.

A traditional formula is that most people should have enough coverage to seven to 10 times their annual salary. But everyone’s financial needs are different. So, use an insurance calculator to figure out how much may be right for you.


Don’t set it and forget it

Over the years, your life is bound to change—and so should your life insurance. You may have more children, start a business, buy a home or get divorced. As a result, you may need a larger or smaller policy, or you may need to name a new beneficiary.

Learn more about which types of policies may make sense for the different stages of your life.


What you can do next

Use a calculator to help determine how much insurance may be right for you. Then weigh the costs and benefits of term vs. permanent coverage—along with your life stage and budget—and shop for a policy. If you have questions, a financial professional can provide answers.


* Loans are charged interest; they are usually not taxable. Withdrawals are generally taxable to the extent they exceed the cost basis of the policy. Loans that are unpaid when the policy lapses or is surrendered while the insured is alive will be taxed on any gain of cash value in the policy. Unpaid loans and withdrawals reduce a policy’s cash value and death benefit, which may lapse the policy and have tax consequences.


Download the PDF version of the infographic here . PDF Opens in a new window


For Compliance Use Only:1043170-00001-00

If you secure tomorrow, you can enjoy today.

Help make sure your loved ones are protected if something happens to you, with Prudential Life Insurance.

Get a Free Quote

Web Content Viewer


Find What Interests You

Web Content Viewer


Web Content Viewer


Web Content Viewer