Term vs. Permanent Life Insurance

Do I Need Term or Permanent Life Insurance?
Our Insurance Representatives can help you choose the most appropriate policy, but here are some key basics for you to consider: 

You Should Consider Term Life If You:

  • Need short-term protection (fewer than 10 years)
  • Want to keep your initial premiums low
  • Only want to cover funeral expenses and provide money for the family to continue its normal lifestyle
  • Are not concerned about periodically re-qualifying based on your health
  • Are only trying to insure for a fixed period of time (length of your mortgage or until your kids are grown)

You Should Consider Permanent Life If You...

  • Need long-term protection (10 years or more)
  • Want to keep premiums consistent over the years
  • Want to build cash value to save for a major expense (buying a house, paying for college, retirement, etc.)
  • Want to borrow on the cash value or use it as collateral
  • Have concerns about re-qualifying based on your health



Feature Term Life Insurance Permanent Life Insurance
Cost Lower Premium Higher Premium
Coverage Limited Time Lifetime
Cash Value None Builds Tax Deferred
Dividends None Paid in Cash or Applied to Premium to Buy Additional Insurance or
Accumulate Interest
Loans None Available on Cash Value for Any Purpose
Benefits Death Benefit Death and Living Benefit


For help in deciding what type of insurance best meets your goals and objectives, our Financial Advisors have the know-how to help you navigate the world of insurance. Call us today at (800)392-3009 to schedule an appointment with a Financial Advisor or visit a People's United branch and ask to see one of our life insurance licensed employees.

Related Information

  • Meet with an Advisor
    Call us at 800-392-3009


Investment and Insurance Products:

  • Not Insured by FDIC or any Federal Government Agency
  • Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate
  • May Lose Value

Investment and insurance products are offered through People’s Securities, Inc., a Broker/Dealer, member of FINRA and SIPC, an insurance agency and a registered investment advisor. People’s Securities, Inc. is a subsidiary of People’s United Bank, N.A. Investment products may involve risk, including possible loss of principal.

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