TERM LIFE INSURANCE
What Is Term Insurance:
Term Insurance provides protection for a specified period of time, typically from one to 30 years, and pays a death benefit only if you die during this term. Some policies can be automatically renewed at the end of the coverage period, and some can be converted to permanent insurance without need for a medical exam.
Advantages of term policies include:
More insurance for less money. Premiums with this type of life insurance are lower than those for permanent insurance, and you can afford to buy more coverage when you need it the most.
Specified periods of coverage make term insurance ideal for covering specific short-term financial needs such as a college education or a mortgage loan.
Disadvantages of term policies include:
Premiums increase at each policy renewal date, becoming very expensive later in life.
There is no savings feature (cash value), only a death benefit if you die while the policy is in force.
You could outlive your coverage. Term insurance is generally not renewable after age 70 or 75. State laws vary on this issue, so you should check with your state department of insurance.