What are the advantages and disadvantages of term insurance? What are the advantages and disadvantages of term insurance?
• Initially, 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’s good for covering specific needs that will disappear in time, such as mortgages and car loans. Disadvantages: • Generally, premiums increase as you grow older. • Coverage may terminate at the end of the term or may become too expensive to continue. • Generally, the policy doesn’t offer cash value or paid-up insurance.
