Term Life Insurance

frontpage.jpgTerm life insurance is the original form of life insurance and is considered to be pure insurance protection because it builds no cash value. It was developed to provide temporary life insurance protection on a limited budget. Term insurance is well suited for short-range goals such as life insurance coverage to pay off a loan, or providing extra life insurance protection during the child-raising years.

One of the biggest advantages of term life insurance is its lower initial cost in comparison to permanent life insurance. Term life insurance policies have no cash value accounts, policy loan provisions or other features typically found in permanent life insurance policies. With term life policies, you’re generally just paying for the death benefit, which is the lump sum payment your beneficiaries will receive if you die during the term of the policy.

Paying for life insurance hurts! But few can do without it. The key is to buy life insurance only for losses that you can not replace, such as your income. Avoid narrowly defined life insurance policies that only cover specific loss of life, such as accidents, plane crashes or cancer. You’re better off with insurance for any loss of life for a small increase in the life insurance quotes.


It is, as if by avoidance, we can delay having to face the fact that dying will happen to all of us. Our routines continue and we make new commitments while not knowing whether our deaths will be premature.

In contrast, imagine the security of knowing that by purchasing life insurance, we are setting an example of responsibility and caring. There will be cash to pay for a wedding or a down payment on a home or funds to finance an education. Think about it. A life insurance policy will provide you with the actual ability to have a positive influence on the future of those you love.

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3 Responses

  1. hank says:

    Good post – I am considering dumping my perm life insurance and switching to term though – I don’t need the “investment” vehicle it has. I’ve had it for 5 years and it’s not even come to be equal to what I’ve put in it, and that’s a bad investment for ANYONE for 5 years… 🙂 Good post, I’ll be back.

  2. cc says:

    Consider the “cost of insurance” (actual cost per thousand dollars of insurance) associated with most perm insurance policies (really easy to find in VUL’s or UL’s, not so much in some whole-life) compared to that of term insurance. Term’s cost is the entire premium, whereas permanent is a small percentage. Even as hank indicated above, his value may not be what he put into it, but there is some value. If he had been paying term, all of it would be cost. The cheapest type of life insurance by that measure is single premium whole life, as it will usually grow in value after the 1st year and come with an increasing death benefit (not available on many term policies). Before replacing any policy, take the time to talk to an insurance professional re this matter

  3. Vertie Jury says:

    Extremely good entry, definitely informative information. Never thought I’d find the tips I want in this article. I have been hunting all over the net for a while now and had been starting to get irritated. Thankfully, I happened onto your website and got exactly what I had been struggling to find.

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