Term Life Insurance

Term life insurance is well-suited to meeting large, short-term protection needs for the lowest initial cost. For example, a couple with young children and/or a mortgage might select term life insurance as an affordable way to obtain the full coverage they need today.

Term life insurance policies do a good job of meeting immediate needs and are usually renewable after 10 or 20 years without providing proof of health. The price will increase so that it's appropriate for your age at renewal, however the increase in premium can become substantial in later years. Coverage ceases for the majority of term contracts once you reach the age of 75 or 80.

Term life insurance provides the option to later move, or convert to a permanent life insurance policy without providing proof of health. However, this ability to convert to permanent life insurance often expires at age 65 or 70. When purchasing term life insurance, you need to understand your conversion options.