So, term insurance is like renting a safety net for a set period. It’s there for you if something happens, but if nothing does, it expires. You’re covered for a fixed time – say 10, 20, or 30 years. Usually, term insurance is more affordable because it focuses on giving your loved ones financial support if you’re not around.

Permanent Life insurance, such as whole life insurance, is more like owning a safety net for life. It builds up cash value over time, and you can even borrow against it in certain situations. Some plans can even be cashed out later. Basically, term insurance provides financial coverage for a set number of years you choose. If you’re someone who wants long-term coverage and potential financial benefits later, permanent insurance could be a better fit.