Term vs. Permanent Life Insurance According to industry experts, most people don't have enough life insurance. The American Council of Life Insurers recently reported that average coverage equals $183,780, which is equivalent to approximately 3.5 years in terms of income replacement (with the median income being $54,132 in 2022, according to the Bureau of Labor Statistics). That's only half the recommended 7-year threshold.1,2 Furthermore, almost half of consumers said that their households would be in immediate or near-immediate financial trouble if the primary wage earner died today.3 When considering life insurance, one of the most important factors to understand is the difference between term and permanent insurance. Here’s an inside look at both. Term and Perm Term or Perm? Term life insurance is temporary; it provides a death benefit for a specific term, such as 10, 20, or 30 years. Unlike other types of life insurance, it does not accumulate a cash value. If the po