How do I know which type of life insurance is right for me?

Term life insurance is a policy for a set amount of money for a set amount of time. Permanent life insurance is a lifelong policy with an investment component. In this video, financial expert Nicole Lapin explains how to chose which is best for you.

Transcript

00:00

[BLANK_AUDIO] It's a really good question. There are actually two types of life

00:07

insurance. There is term life insurance, and then there's permanent life insurance. Let's start with explaining the term, life insurance,

00:14

one basically. It's a policy for a set amount of money, let's say a million bucks, for a set or fixed amount of time, say 20 years

00:23

for example. So if you die within those 20 years, your heirs get that money tax free.

00:31

Permanent life insurance on the other hand, is a lifelong policy with an added investment component. But here is the deal. You wanna

00:38

build up all that cash, for your loved ones to live tax free, this policy's gonna set you back, a couple thousand bucks. That's a

00:45

lot more than the term life insurance policy. But there is no term expiration.