Term is the lowest cost life insurance product available. Level term insurance includes low premiums and steady coverage over the term of the policy. In other words, your premiums do not go up and your coverage does not go down as long as your premiums are current. In general, Yearly Renewable Term policies are most efficient during the first 3 to 4 years. If you plan to keep your policy for longer than 3 to 4 years, you should consider Level Term.
Term insurance is bought by millions of people for a number of reasons.
Families use Term for security. In case the insured passes away, your Term policy insures there will be money to use to pay for your home, college, outstanding loans and other major expenses. Small Business Owners use Term insurance as low cost debt protection to cover notes, lease obligations, business real estate mortgages and other expenses. Business Partnerships often use Term Insurance to buy out partners in the event of their death. Corporations use Term as stock purchase redemptions.