Advantages1 - The premiums are usually quite inexpensive whether you buy your policy for the short term or for longer periods like 20 or 30 years.
2 - The more popular policies have level face amounts, they never decrease. You never need to be concerned whether your coverage is sufficient when you buy it.
3 - The premiums also remain level throughout.
4 - You can easily provide sufficient coverage to protect your loved ones because of the low premiums.
5 - If you own a fairly new business you want to plow as much cash into it as is needed. You don't want to spend on any other thing, much less insurance. The low cost of these policies make the necessity of coverage easier to bear.
6 - These plans can be converted to permanent plans within specific periods of time, depending on the policy as well as the company.
7- Like any life policy the death benefit of a term life insurance policy can be paid out either in a lump sum or in income form.
Disadvantages1 - Term insurance can only be kept for limited periods of time. It can be quite devastating if an insured should die after the term policy has expired.
2 - Some policies can be renewed after the term period but for increased cost. This cost can be prohibitive.
3 - You will lose your coverage at the end of the term period. The problem is that you may need some life coverage at that time but you are older then and may not be able to qualify because of health conditions even if you can pay the higher premium.
4 - For some reason term insurance tends not to remain in force for the entire period it was bought. Perhaps this is so because these policies do not accumulate cash values and as a result there is not much to lose by terminating the policy. For the reasons mentioned above it is always wise to keep your policy in force for as long as the contract allows you to as one never really knows when death will occur.
