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Choosing a life assurance plan is difficult; it takes a lot of time and research in order to ensure that all aspects are thoroughly examined before making a final decision. There are basically two forms of life assurance to choose from: term life assurance and permanent life assurance.

Below you will find valuable information regarding both forms of life assurance as well as other helpful information which will assist you in deciding which form of life assurance is best suited for you and your situation.

The first thing to do is to research and understand the concept of both forms of life assurance. These two forms of assurance have been compared to buying or leasing a car. Term life assurance is much like leasing a car, you can purchase assurance for a specific number of years, but once those years are up, so is your assurance coverage. Permanent life assurance is similar to buying a car. When you buy a car, it's yours and you can drive it forever if you like. Permanent life assurance stays with you until you die.

Depending on your situation, each form of assurance can be very beneficial and offer many great opportunities. Below you will find a more in-depth explanation of each form of assurance providing advantages and disadvantages of both.


Term Life assurance


Benefits

• Term life assurance is inexpensive and can cost a considerable amount less than permanent life assurance.
  
• There are no strings attached with this form of assurance and you are free to stop paying whenever you want.
  
• You can begin using term assurance and if you feel like you want more coverage, you can then convert to permanent life assurance if you wish.
  

Downfalls

• Term life assurance only provides coverage. There are no other rewards and there is no cash value.
  
• Yes you are free to stop paying whenever you please, but should you choose to do so you will no longer have any life assurance coverage.
  
• Term prices increase at a rapid pace as you get older and as you get older, your need for this type of assurance will become more and more crucial.
  

Permanent Life assurance



Benefits

• Permanent life assurance can accumulate into cash value and savings. Any cash value which you receive will be tax deferred.
  
• There is no risk involved in this form of assurance. Your loved ones will receive a death benefit regardless of when you pass away, whereas term life assurance will only pay out if you happen to be covered when you die.
  
• You can borrow the cash value you receive to pay for college, a vehicle, etc. You can do this without receiving a penalty for doing so.
  

Downfalls

• The most noticeable disadvantage to permanent life assurance is the cost. This form of life assurance will cost you a great deal more than term life assurance.
  
• Should you decide to forgo your permanent life assurance coverage, you will be required to pay a large penalty which will be bounded by law.
  

Bill Mason is a retired assurance agent who now writes as a freelance writer for http://www.assuranceguide101.com - a site that offers information on auto assurance, pet assurance, boat assurance and more.