Insurance Planning

Life Insurance: What’s the difference between permanent and term insurance?

Life insurance is a valuable tool for protecting your loved ones financially in the event of your untimely death. There are two main life insurance types: permanent and term insurance. Both have unique benefits, and choosing the right insurance for your needs requires careful consideration.

Permanent Insurance

Permanent insurance, as the name suggests, provides coverage for the policyholder’s entire life. This type of insurance can be further divided into two categories: whole life insurance and universal life insurance.

Whole Life Insurance: Whole life insurance provides coverage for the policyholder’s entire life and comes with a fixed premium. It also has a cash value component that grows over time and can be borrowed against or withdrawn. This type of insurance is more expensive than term insurance, but it provides a guaranteed death benefit and can also be used as an investment vehicle.

Universal Life Insurance: Universal life insurance also provides coverage for the policyholder’s entire life, but the premiums and death benefit can be adjusted over time. It also has a cash value component, which can be invested in various sub-accounts. This type of insurance provides more flexibility than whole life insurance but can also be more complex.

Term Insurance

Term insurance provides coverage for a set period of time, typically 10 or 20 years. It is less expensive than permanent insurance but only provides coverage for a limited time. 

Coverage needs: 

Coverage needs: Consider how much coverage you need and for how long. Permanent insurance provides coverage for the policyholder’s entire life, making it a better option for long-term financial goals. On the other hand, term insurance is appropriate for short-term financial obligations.

Here are some examples of situations where you might choose permanent insurance versus term insurance:

Permanent Insurance might be appropriate if:
  • You want to provide financially for your loved ones, regardless of when you pass away.
  • You want to leave a legacy to your children or grandchildren.
  • You want to use the policy’s cash value component to borrow against or invest in other financial goals, such as paying for college or retirement.
  • You want to ensure that your final expenses, such as funeral costs, are covered.
Term Insurance might be appropriate if:
  • You have specific financial obligations that will end at a certain point, such as paying off a mortgage or funding your children’s education.
  • You want to provide a safety net for your loved ones during a specific period, such as while you are building your career or starting a business.
  • You want to ensure that your family is financially protected when they are most vulnerable, such as when your children are young, or you are the sole breadwinner.


Permanent insurance policies are typically more expensive than term insurance policies. This is because permanent insurance offers coverage for the policyholder’s entire life and has a cash value component, which can be used for investment or borrowing purposes.

Term insurance policies provide coverage for a specific period and do not have a cash value component. Term insurance policies are initially more affordable than permanent insurance and will increase at the end of each term.
Choosing a policy that fits within your budget and provides the coverage you need for your financial goals is essential. We can help you evaluate the costs and benefits of each policy and help you make an informed decision.

Cash Value: 

One of the key benefits of permanent insurance policies is the cash value component. Over time, the policy accumulates a cash value, which grows tax-deferred and can be used for various purposes. This cash value can be borrowed against or withdrawn for financial goals such as paying for college or retirement. As a result, permanent insurance policies can also serve as an investment vehicle. 

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Well-being benefits - Helping to enhance your life

From your family to your future, Foresters has you covered. As part of our fraternal purpose, we offer our members a wide range of unique and complimentary benefits. It’s just one of the many ways we share our financial success with our members. You know we are here to support you when you need it most.


Members can access discounts on gift cards, everyday necessities, electronics and other online shopping opportunities. Plus, family-focused activities are more affordable with discounts on hotels, rental cars, theme parks, attractions and much more. Learn more

Lifelong Learning

A vast online learning library that you can access anytime, anywhere. Explore an interest, work towards a goal or just have fun learning something new. Learn more


This online document preparation service helps you create customizable wills, powers of attorney and healthcare directives. Find out how LawAssure can help you to protect your legacy. Learn more

Orphan Scholarships4

This benefit provides the children of deceased members with a renewable higher learning scholarship of up to $6,000 per year for up to four years. Visit to learn more.

Orphan Benefit4

This monthly payment of up to $900 per month per child may help you provide for your children in the event of the death of both you and your spouse. Visit to learn more.

Terminal Illness Loan4

If you become terminally ill, you may be eligible to receive an interest-free loan5 up to 75 per cent of the face value of your Foresters life insurance. Visit to learn more.

Community Grants – Give back and connect with loved ones

Whether you want to volunteer in your community or create lasting memories with the people who matter most, Foresters Community Grants can make it happen. We invest over $5 million2 every year into our Community Grants so they can help you do more for the people and community around you. So, use a grant to donate books to a local library or create care kits for a shelter. Or bring your family together for some fun and meet people with similar interests. Have fun, help others and reconnect with Community Grants. Learn more

Foresters Care™ grant – A little help goes a long way

See. Act. Care for your community. This member benefit allows you to make a positive difference in your community with two yearly grants of $200 each. A Foresters Care grant activity requires minimal planning and is easy to execute on your own, so you can identify an immediate need and make a meaningful difference quickly. Learn more

Foresters Competitive Scholarship Program - Investing in our future

We believe that education and community are important. That’s why we award almost $2 million2 per year in renewable tuition competitive scholarships to members or their family members. The scholarship selections are based on factors that include good grades and community volunteer involvement and are available to eligible students pursuing post-secondary education at a university, community college or trade program. Learn more

Reach out today to talk about your future financial insurance needs.