The Advantages of Term Life InsuranceThe biggest advantage is affordability. Term life insurance is the most efficient way to get maximum life insurance protection for the least amount of expense. When you're young and just beginning your career or family, you know you need insurance, but you probably don't have much spare cash to pay for it. With a term policy, you can buy a larger death benefit for less cash than you could with any other type of life insurance policy.
Term life insurance is also flexible. You can buy coverage for a range of time periods, to ensure you're not buying coverage you don't need. Common term periods are 1 year with an automatic and guaranteed renewal each year (at a higher premium) up to age 95 in some states, or a level premium for periods of 5, 10, 15, 20, 25, or 30 years. If you think you might want to convert your term policy to a permanent policy later in life, you have that option, too. A term policy lets you get your foot in the door, so to speak, and there are lots of ways you can expand that coverage later, if you need to.
* Example assumes a 40 years old male buying a 10 year term life insurance policy, in the Preferred Plus Underwriting Class. * Example assumes a 45 years old female buying a 10 year term life insurance policy, in the Preferred Plus Underwriting Class.