In which scenario would you recommend permanent insurance over term insurance?

Permanent insurance is particularly suited for scenarios where there is a desire for a long-term financial strategy, especially in relation to estate planning or charitable contributions. When an insured expresses a wish to make a donation after their death, permanent insurance aligns perfectly with this goal. It provides lifelong coverage that ensures a death benefit is paid out, regardless of when the insured passes away, enabling them to fulfill their charitable intentions.

In this context, the cash value accumulation feature of permanent insurance can also play a substantial role in the overall financial strategy, as it can grow tax-deferred over time. This accumulation could potentially enhance the amount available for donation, especially if the policyholder utilizes the funds during their lifetime.

The other scenarios present more temporary needs or finite timeframes that are better suited for term insurance, which provides coverage for specific periods without the additional investment features inherent in permanent insurance. For example, term insurance fits better when the need for coverage ends in 10 years or when the insured has a temporary need. It lacks the long-term benefits that would support someone wishing to make a lasting donation after their death.