Term Life Insurance

Term life insurance is good when you need life insurance coverage for a certain period of time.

Term life insurance can either be level premiums, which means that it will be the same premium payment for the amount of the term or it can be renewable term, which means you basically keep buying 1 year term life insurance policies. Your premiums change each year based on age, health, and some other factors. Term is great for younger families that need a way to protect themselves when they are the most vulnerable.

Pros: The cost of premiums is lower than with permanent life insurance. Almost all term life insurance policies can be converted to whole life insurance.

Cons: There is no cash value and you are only covered for a certain period of time. It is only cost effective for health individuals and individuals that are younger in age. The cost of term insurance increases a lot once you are over 65.

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