Term life insurance is the most basic form of life insurance with the sole purpose of providing death benefit for a specific period of time. Term Life Insurance may cover anywhere from one to 30 years, depending on your particular insurance needs. Unlike other forms of life insurance, term life insurance does not develop a cash value and can become increasingly expensive as you get older.
Besides these two downsides, term life insurance has a variety of benefits. Designed to provide temporary life insurance protection on a budget, it is considerably cheaper than other kinds of insurance. However, keep in mind that premiums will often increase as you get older. Term life insurance is primarily designed for shorter time periods rather than the majority of your life. If cost or time is a primary consideration for you, then term is probably a great option.
The flexibility of term insurance is another positive aspect. Your insurance need may only be estimated for a certain number of years, say until you have paid off a loan, in which case you can tailor your insurance to the exact length of time you require it. Even if you complete your term of insurance, there is typically the option of renewing for another term or transferring to a full life insurance plan.
If you are looking for temporary life insurance protection, then term life insurance is your best option. So, if you are fairly young, low income, or simply need insurance for only a certain period of time, term life insurance could be the ideal choice.