The main difference between term life and permanent life insurance is term life provides coverage for a specific amount of time only, while permanent policies often provide coverage for an entire lifetime, or at the very least, until the insured reaches a certain age--at which point the policy's cash value is paid to the insured individual. Furthermore, permanent life insurance policies build up cash vales which can be borrowed against to pay big bills like college tuition, and in some cases, even withdrawn completely.

Permanent life insurance policies can be a great coverage solution or some individuals but does have some drawbacks. For example, permanent life is initially more expensive than term life insurance. For individuals on a budget it makes more sense to get the coverage needed without busting the budget, than to buy a permanent policy and struggle to pay the premium.

Another drawback of permanent life insurance is that unpaid loans taken against a policy's cash value serve to reduce the total death benefit, a significant problem if it leaves beneficiaries unprotected. Withdrawals and any unpaid loan interest reduce the covered amount as well. On the flip side, policy loans and withdrawals provide access to cash when you need it. Additionally, some withdrawals and loans may qualify for tax-favored treatment.

Spectrum Direct can provide you with all types of life insurance to fit your needs. Whether you need permanent life insurance or affordable term life, you can depend on Spectrum Direct to help you compare and choose the very best life insurance products. Get your free affordable term life quote instantly online or call to speak with one of our insurance professional about permanent life insurance.