Should I buy term life insurance or permanent life insurance?

There are two main types, and they answer different questions. Texas puts it plainly: there are two main types of life insurance, term life and permanent life [1]. Term is time-bought protection. It covers a set period, called a term, which can run one year, or five to 30 years, or longer, and you choose the length [1]. It pays a lump sum to your beneficiaries if you die during the term, and the policy ends when the term ends unless you pay to extend it [1]. Most people who buy term want cover for a stretch of life, such as while they are raising a family or have children in college [1].

Premiums stay the same for the whole term. They go up if you renew, because the new premium is based on your age when you renew, not your age when you bought [1]. Also note that most companies sell term only up to a certain age, usually 70 or 80 [1]. Convertibility lets you exchange the term policy for a permanent one without a medical exam or health questions, which matters if your health gets worse. Converting raises your premium, and companies usually allow it only for a time, typically until you turn 65 [2]. Renewability lets you extend for more terms regardless of your health, with no medical exam [2].

Permanent is built differently. Some permanent policies build savings over time, called cash value. Part of each premium goes into that account, it grows at a fixed or a variable rate, and you can withdraw from it, borrow against it, invest it, or use it to pay premiums [3].

These sources do not pick between the two for you. They set out the features above and leave the choice with you. What a given company charges for either one is not in these pages.

Open the TDI life insurance guide. Read "Types of life insurance." Then read "Key features of term life policies." Now look at any quote you get. Does it name the term, the premium, and whether you can switch later? What one company charges: "Don't know yet" here.