There’s a lot of debate these days over which kind of life insurance to buy. Many people understand the need to protect their families in case the worst happens, but they don’t know if they should buy term or permanent life insurance. New Jersey residents should keep in mind that while term is cheaper, permanent (also known as whole) life insurance will be with you as long as you pay the premiums on the policy.

When you buy a term life policy, you only receive coverage for the “term” that the policy is in effect. This may be 5, 10, or in some cases 20 years. When that term expires, the coverage is no longer in effect. Unless the policy is renewable, you would need to buy a new term or permanent policy to get covered again. For those on a very tight budget, term life may be their only choice, and it’s certainly much better than no coverage at all. But if you can afford it, permanent whole life insurance is a much better option.

With permanent life insurance, New Jersey citizens can get coverage that will last a lifetime. Most policies have a premium that is paid for a certain number of years until the policy is paid in full. While the payments are being made, the policy is in effect, covering you for whatever amount of death benefit you chose to purchase.

Over time, most of these policies accumulate cash value and become a financial asset. At that point, the policy can be borrowed against if you have a financial need, or cashed out if you decide you no longer need the coverage. Of course, cashing it out would mean you no longer have insurance, so the better option if you need money is to take a loan against it. Depending on the specific policy, the loan could later be paid or be deducted from the death benefit if the policy owner dies.

So while it is advisable to have some kind of insurance protection for your family, permanent life insurance is the best option for people in New Jersey that can fit it into their budget.