Getting married, starting a family, changing jobs, even getting a degree often changes one's priorities. A Term Life Insurance purchase is a cost effective means of protecting those you love. Term life Insurance policies not only allow you to select the coverage amount, but also enable you to choose how long you want to be insured. Term life policies can be purchased at a surprisingly low cost, especially in comparison to permanent forms of insurance.

Understanding Term Life Insurance
Life insurance is designed to provide you and your family with protection from financial distress in the unfortunate event of an untimely death. In the event of death to the insured, the face amount of the policy is paid to designated beneficiaries. Depending upon the provisions of the insurance contract, if the insured survives the contract period, the insurance company may terminate the policy or the policyholder may renew coverage for an additional period of time.

Protect yourself and your loved ones.
As an affordable form of life insurance, Term Life generally costs less than other insurance policies and pays a death benefit rather than maintaining cash value. Given its affordability, Term Life is the most common type of life insurance on the market. Most Term Life Insurance policies provide coverage for a specified period of time (typically 5, 10, 15, 20 or 30 years) or until the insured reaches a specific age (most commonly 65.) Typically, Term Life Insurance is most useful when an insured is relatively young and the need is for temporary or relatively short-term coverage. It is important to understand the components of any insurance policy that you are considering before making a purchase.

Premiums for Term Life Insurance
Your Term Life premium depends upon your family's medical history, your environment, and your own medical status. Premiums for Term Life Insurance also vary depending on age, gender, smoking status, current health, pre-existing medical conditions, or the amount of coverage you are requesting.

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.

Term Insurance Advantages
Initially, premiums are generally lower than those for permanent insurance, allowing you to purchase higher levels of coverage when protection is needed while maintaining your budget. Covering specific needs or obligations that will decline over time, such as a mortgage. Term Life Insurance is an effective way to get maximum coverage for the lowest possible premium.

Term Insurance Disadvantages
On most Term Life policies, the premium may increase after the guarantee period expires. Coverage may terminate altogether at the end of the policy term or may become too expensive to renew. Term Life policies tend not to have a cash value or any loan value.