Term Life Insurance is life insurance that pays out the death benefit if the insured person dies during the term of the policy. E.g. If you buy a 10 year term life insurance policy on yourself, it would pay your beneficiary the death benefit if you died in the next 10 years.
Regular life insurance can mean different things to different people. Back in our grandparents' day, regular life insurance meant Whole Life. Whole Life is life insurance that stays in effect for the entire lifetime of the insured person. It also has cash value that people can borrow from or use before death.
In modern times, regular life insurance can mean whatever you are familiar with. When you hear ads on TV or radio, they are usually quoting Term Life (with the exception of burial policies - they are usually quoting Whole Life). You will want to ask for clarification before buying any policy, so that you get the type of life insurance that you truly want.
The difference between Term Life Insurance and Regular Life Insurance (whole or universal life) is somewhat like the difference between renting a home and owning it. When you rent you are paying to have access each month but you have no ownership and are building up no equity in the property. Term Life insurance provides a death benefit for the term (time period) of the policy (usually 10, 20 or 30 years). If you are still alive at the end of the policy's term then the policy expires and the insurance company keeps all the insurance premiums you have paid over the term the policy was in effect (unless you pay extra for a "return of premium" rider on the policy). Term Life policies do not build up any cash value.
Regular/Permanent Life insurance policies, while more expensive, can build up cash value over the years that are a financial asset to the policyholder. A Regular/Permanent Life insurance policy can also be paid up, this means at some point no further premium payments are required and yet the policy remains in effect until the death of the policyholder.
This is a very high level and simplified description of the difference between Term and Permanent Life Insurance. I usually recommend that people have a combination of permanent and term life insurance over the course of their lives. As each person's situation is unique, you should seek out an experienced life insurance agent (preferably an independent agent who represents multiple life insurance companies) to help you determine what your needs are and to design the policy or policies that will best meet your needs.
Some would say that regular life insurance is term life insurance as it is the most common policy sold. There are two main types of life insurance term life which guarantees a preium for a certain amount of years, such as 10-20-30 year term are the most common. The second type of life insurance are permanent life insurance policies such as whole life and universal life. These policies are designed to last your lifetime and carry cash value that can be used for a variety of things such as retirement, critical illness expenses, long care expenses and children's college funds.
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Regular life insurance can mean different things to different people. Back in our grandparents' day, regular life insurance meant Whole Life. Whole Life is life insurance that stays in effect for the entire lifetime of the insured person. It also has cash value that people can borrow from or use before death.
In modern times, regular life insurance can mean whatever you are familiar with. When you hear ads on TV or radio, they are usually quoting Term Life (with the exception of burial policies - they are usually quoting Whole Life). You will want to ask for clarification before buying any policy, so that you get the type of life insurance that you truly want.
Regular/Permanent Life insurance policies, while more expensive, can build up cash value over the years that are a financial asset to the policyholder. A Regular/Permanent Life insurance policy can also be paid up, this means at some point no further premium payments are required and yet the policy remains in effect until the death of the policyholder.
This is a very high level and simplified description of the difference between Term and Permanent Life Insurance. I usually recommend that people have a combination of permanent and term life insurance over the course of their lives. As each person's situation is unique, you should seek out an experienced life insurance agent (preferably an independent agent who represents multiple life insurance companies) to help you determine what your needs are and to design the policy or policies that will best meet your needs.