When looking at life insurance, there has been a long standing debate between term life insurance and permanent life insurance.

Many people have strong opinions on which type of life insurance is more beneficial to the insured person and their beneficiaries.

This leaves people very confused, especially if they are just beginning to think about taking out a plan.

 So, which one is better?

The answer to this question is that one is not better than the other.  They both have there advantages and disadvantages, and it all depends on your specific situation as to which one is best for you.

A recent article by Jason Cunningham of financial-shopper-network.com, “Terms vs. permanent life insurance: Does the battle really continue,” discusses the important things that insurance shoppers need to know about these two different types of life insurance.

“There seems to be two fundamental, opposing viewpoints in the financial community over which type of life insurance, individuals in this society should purchase. Many financial advisors believe both permanent and term insurance, should be considered and play an important role in the financial planning process.”

First of all, term life insurance only last for a specific amount of time, say 10 or 20 years. On the other hand, permanent life insurance last for the duration of a life.

“The idea behind permanent insurance is to have coverage your entire life. When you die, the policy will be paid to your beneficiary, unless the policy is challenged by the insurance company over possible fraud or something. Many in the public argue over the necessary need for a permanent life coverage.”

Term insurance lasts only a specific amount of time unless it is a one year adjustable policy (some of these end at age 65). A one year adjustable term policy's premium is fixed for 12 months, and the company reserves the right to raise your premium every year on the anniversary and usually will. Otherwise you will have an option of possibly 5, 10, 15, 20, 25, or 30 year term.

The interesting thing about a term policy is that many (although not all) can be converted into a permanent policy.

Term is also traditionally less expensive than permanent, so if you need to take out a large policy, you can usually do so with a limited amount of funds.

Permanent life insurance comes in many forms, and many can provide very lucrative investment opportunities.

“With many universal life and all whole life insurance policies, you can lock your rates, and once the policy is approved, who cares if you are diagnosed with inoperable cancer in 27 years. Also if you need a loan or something, there may be cash value in the policy for an emergency. This does not exist in the usual term insurance policy. When you get to the end of a term life insurance policy, it is usually a good reason to buy a new policy or a reason to yell at your financial advisor.”

Both of these types of insurance have negatives and positives, be sure to speak with a financial advisor and research your options before deciding on one policy or the other.