Term Life Insurance

Young Family

Term insurance provides protection for a specific period of time. These policies are relatively inexpensive and are well suited for families still in the child-raising years or who are paying off a mortgage. Term policies pay benefits only if you die during the term. Some term insurance policies can be renewed when you reach the end of the term--which can be anywhere from 1 to 30 years.

Advantages of Term Life Insurance

Car or House

Initial premiums are generally lower than those for permanent insurance, allowing you to buy higher levels of coverage at a younger age when the need for protection is often greatest.

It is good for covering needs that will disappear in time, such as mortgages or car loans.

Disadvantages of Term Life Insurance

Premiums increase as you grow older.

The policy does not generally offer cash value.