Two different jobs, two different tools. Here is how to tell which fits.
Term covers a season
Term insurance lasts a set number of years — commonly ten, fifteen, twenty or thirty. If the covered person dies during the term, the benefit is paid. If the term ends, coverage ends unless the policy is renewed or converted under its terms.
Because it covers a defined window, term generally provides the most coverage per dollar, which is why it is common for families paying off a mortgage or raising children.
Permanent is built to stay
Permanent coverage is designed to remain in force for life as long as it is funded as intended. Some permanent policies accumulate cash value that can be accessed according to the policy contract.
Premiums are higher than comparable term coverage because the policy is expected to pay a benefit eventually rather than expire.
Many families use both
A common approach is a larger term policy covering the highest-need years alongside a smaller permanent policy for final expenses or legacy goals.
There is no universally correct answer. The right structure depends on your obligations, your budget and how long you need protection to last.
This article is general education, not insurance, tax or legal advice. Policy features, riders and availability vary by state and insurance company, and the actual policy documents govern all coverage.