Life Insurance 101

Term vs. permanent: which is right?

Life insurance falls into two main categories — term and permanent. Each suits different needs, and many people end up with a combination.

By Trevor Perron, Independent Insurance Advisor · Serving Manitoba & Ontario

Term life insurance

Term provides protection for a set period — commonly 10, 20, or 30 years — designed to cover you while you carry major financial responsibilities like raising children or paying a mortgage.

• Coverage for a fixed term;
• The highest coverage for the lowest initial premium;
• The most affordable option for most budgets;
• No cash value — it pays a death benefit if you pass during the term.

Best for: affordable coverage for a specific window — until the kids are independent or the mortgage is cleared.

Permanent life insurance

Permanent coverage lasts your lifetime as long as premiums are paid, and it builds cash value over time that grows on a tax-deferred basis.

• Lifelong protection;
• Builds cash value you can borrow against;
• Higher premiums than term;
• Useful for long-term planning, wealth transfer, and supplementing retirement.

Best for: those who want lifelong coverage and a policy that builds value for future use.

You might want a mix

Often the strongest approach combines both — affordable temporary coverage for your high-obligation years, plus a permanent base for lifelong needs. The right blend depends on your goals.