Term insurance provides life insurance protection for a specific period of time and a cash benefit upon death. Premiums are generally lower, but increase as you grow older.

Permanent insurance provides life-long protection but at a higher initial premium than term insurance. Along with a cash benefit upon death, permanent insurance accumulates cash value over time.

Is term or permanent life insurance right for me?

It depends. For younger people, the lower premiums of term insurance are attractive. However, if you want coverage for a period that extends beyond the original policy length, you will need to requalify in order to purchase a new policy. This will likely mean a higher premium as you grow older. 

Some insurers provide a guaranteed convertibility clause to allow you to convert term insurance to permanent during the specified period of coverage.

How much insurance do I need?

Most people want to have life insurance equal to six to eight times their annual earnings. You should also consider:

• Are you married?
• Are you the main source of income?
• How much do you make?
• How many children or other dependants rely on your income?

Use Sentry's Life Insurance Calculator to find out how much insurance you need to protect yourself and your loved ones.