Term Life Insurance

What is Term Life Insurance?

Term insurance is the most affordable type of life insurance at the moment. It is intended to cover the applicant's short-term life insurance needs. Term life insurance is the cheapest type of life insurance. It only provides coverage for a short time (the term), and doesn't accrue cash value.

Term insurance is used to pay for mortgage payments, credit card debt, college tuition and daily living expenses for survivors.

Term life insurance is the best way to protect yourself against financial risks that may eventually (hopefully!) go away.

Pros

The advantages of term life insurance include its low premiums, the availability of add-ons that can increase coverage, and the possibility of converting the policy to permanent life insurance prior to its expiration without having to undergo a medical exam.

Cons

Term provides ad hoc protection and over time increases its non-cash value. The policyholder does not get reimbursed for the premiums they paid to the insurance company if a term policy is cancelled or expires.