Term Vs. Permanent Life Insurance Calculator

Recommendation: On the whole, permanent insurance seems best suited to your lifestyle.

Here's why: We considered each of your answers and weighed each based on the experience of our experts.

Your IRA or 401(k): You indicate that you are actively funding an IRA or a 401(k). This is an excellent way to save for retirement and decreases your need for a permanent life insurance product with an investment build-up component. If you are not maximizing your contributions and can afford to contribute more, this is a better investment option than what you would earn through a life insurance policy.

Your budget: Your tight budget can make it tempting to go for the lowest cost life insurance product, term insurance. However, if you find it challenging to save for the future because your budget is so tight, an insurance product that produces investment earnings could be more beneficial.

Your savings: If you are disciplined with your saving and investing, you may not need to rely on a life insurance product to do your saving for you. This suggests a term policy would better suit your needs.

Your view on investing: Your willingness to take on additional investment risk in pursuit of the best return suggests you are better suited to investing outside of a permanent life insurance product, and may wish to consider term insurance instead.

Your view on a self-funding policy: Your interest in a policy that can become self-funding suggests purchasing an insurance policy that contains an investment build-up component. However, this is not a feature of term insurance policies.