Term insurance is an insurance policy that you buy for a period of time. These are often a good choice for people in their family-formation years, especially if they're on a tight budget. This type of policy allows them to buy high levels of coverage when the need for protection is often greatest.
Permanent insurance provides lifelong protection, and the ability to accumulate cash value on a tax-deferred basis. Unlike term insurance, a permanent insurance policy will remain in force for as long as you continue to pay your premiums.
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