When Is Term Life Insurance Useful?
Term Life Insurance is an effective way to get the most coverage at a low cost, for a period of up to 30 years. Term Life Insurance is an especially effective financial risk transfer tool for young, growing families with limited income and substantial financial obligations such as home mortgages, student loans or automobile loans. If the need for insurance coverage lasts beyond 30 years, a low cost Universal Life or Whole Life policy may be more appropriate for your situation. A key feature of many Term Life Insurance policies is a conversion privilege which allows conversion your term coverage to a permanent Universal Life or Whole Life policy, without requiring a medical examination. It is important to check the conversion privileges of the term policy before your purchase.
