What Is The Difference Between Term Life Insurance And Regular Life Insurance? 
The difference between Term Life Insurance and Regular Life Insurance -LRB- whole or universal life -RRB- is somewhat like the difference between renting a home and owning it . When you rent you are paying to have access each month but you have no ownership and are building up no equity in the property . Term Life insurance provides a death benefit for the term -LRB- time period -RRB- of the policy -LRB- usually 10 , 20 or 30 years -RRB- . If you are still alive at the end of the policy 's term then the policy expires and the insurance company keeps all the insurance premiums you have paid over the term the policy was in effect -LRB- unless you pay extra for a `` return of premium '' rider on the policy -RRB- . Term Life policies do not build up any cash value . Regular/Permanent Life insurance policies , while more expensive , can build up cash value over the years that are a financial asset to the policyholder . A Regular/Permanent Life insurance policy can also be paid up , this means at some point no further premium payments are required and yet the policy remains in effect until the death of the policyholder . This is a very high level and simplified description of the difference between Term and Permanent Life Insurance . I usually recommend that people have a combination of permanent and term life insurance over the course of their lives . As each person 's situation is unique , you should seek out an experienced life insurance agent -LRB- preferably an independent agent who represents multiple life insurance companies -RRB- to help you determine what your needs are and to design the policy or policies that will best meet your needs . 