When Do I Need Term Life Insurance? 
When do you need term life insurance ? Let me count the ways . You need it when you have a need for a specific amount of coverage for a specific amount of time . Examples include : A home mortgage ; A business loan ; A divorce decree . You also need it when you want permanent coverage , but dont have the budget for a permanent premium . At this point you can : By term now and convert it to a permanent policy when you are ready ; Or buy term now and then shop for a new permanent policy when you are ready . It must be noted that some people will buy both term and permanent policies . This strategy is useful for addressing different needs for coverage that take place over different time frames . For example , they will use term insurance to provide income replacement , family security , and mortgage protection . At the same time , they use permanent insurance to cover the needs they will have for life insurance in the later stages of life . These needs could include supplementing retirement , estate preservation , and charitable giving . 