Life Insurance > Term Life

TERM LIFE

When you bought your first car, you probably bought the economy version vs. the deluxe model. In comparison, term life insurance is the base model of life insurance. It’s generally the most affordable type of life insurance and delivers pure death benefit protection – a fixed level of death benefit coverage for a specified number of years (“term”). This can be ideal for covering temporary needs like paying off a mortgage or other debts in the event of an untimely death.

Another type of term life insurance which has gained in popularity recently is a policy with a premium endowment feature. If you don’t like the idea of paying premiums for something you may never have to use, then consider these return-of-premium-type products -- you typically get back the premiums you pay if you outlive the “term.”

Term life insurance is often the most affordable coverage because it offers protection for a specific number of years. You may want to purchase a term life insurance policy if you want to:

  • Get maximum coverage at an affordable price

  • Cover specific financial responsibilities like a mortgage or college expenses

  • Supplement your permanent life insurance during years when your expenses are higher, like when you have children or other dependents at home


Because coverage ends when the term is over, you may want to convert your term life insurance policy to a permanent life insurance policy if your needs change.