Why is term life insurance usually cheaper?

It covers a limited period and generally does not build the same cash value features as permanent insurance. Use the policy contract and the latest illustration as the controlling documents, and have a licensed insurance professional explain in writing any guarantee, exclusion, rider, or surrender restriction that applies. When evaluating the policy, term life insurance generally provides coverage for a set period, while permanent life insurance is designed to last longer if premiums and policy requirements are met. When evaluating the policy, the right choice depends on the need, budget, duration, health, and whether cash value features are important.