In a nutshell, term life is for temporary coverage while permanent Life is for lifetime coverage. You can purchase a relatively large amount of term life insurance for a low initial premium for needs like: Home mortgage Outstanding debt Educational expenses Auto loan Meanwhile permanent life insurance offers a level premium for a coverage amount you choose. It provides lifetime coverage, provided premiums are paid and the coverage remains in force, and builds cash value. It's best for lifelong needs like: Loved one's financial needs Final expenses Estate planning Contributions to charity Business legacy Access to accumulated cash value