Permanent life insurance may not within your budget right now for the larger amount of coverge desired.  With work and career success you will be able to afford other options in the future.  However something is needed now to prevent causing a financial burden to someone else due to your loss. Term life insurance can be included as a rider to a whole life policy for greater protection amounts or as a stand alone policy.
 

Like all term insurance, as opposed to whole life insurance, short term life insurance does not build cash value. Short term life insurance is an ideal level of protection when you’re searching for a lower cost policy. This type of temporary life insurance is written for a short term, typically a period of five years or less,but as long as 20 years. The coverage amount can vary based on the policy holder’s financial needs and premium payment, making it a flexible way of providing coverage for a short period of time.

 

1. Getting Married- Joining assests with a loved one means more to protect. During the early years of building assets together, whole-life may not be an affordable option.

 

2. Buying a home- Buying term as either fixed rate or decreasing insures that there will be enough coverage to pay off the home, taxes, and protect other assets that you may have now, but will be paid off during the later years of life.

 

3. Large family financial obligations- Term is an affordable way to cover loss of income due to loss of you. Many Americans live paycheck to paycheck. If this is applies to you, could your family financially survive without your income if you died a tomorrow or a few years from now?

 

4. Wanting to leave a larger benefit behind for the children and/or spouse because you are unable to save. Term is more affordable. Once the children are adults, the Term Insurance may not be needed.

 

5. Planning to convert to whole-life. Not all companies have Term Insurance that is convertible to whole-life. This means that should your Term expire without option to renew, you will be older, may be in a poor state of health or uninsurable. We do not know what the future holds for us in regards to health concerns such as heart trouble, stroke, and other issues.  Having a term policy with a convertible provision allows you to obtain permanent (whole-life) coverage without proving health or insurablity. 

 

6. The early years of starting and running a business. Entreprenuership is the spirit of sucessful living, but young businesses often close upon the death of the owner. Whole-Life is more suitable with more advantages, but term can serve as well during the start. Read and learn more on Insuring the Business Owner.   Term life insurance, whole life, health insurance, insurance agent, final expense, insurance broker, affordable, cheap, quality, policy, employer benefits, section 125