What Is Term Life Insurance Good For? 
Term life insurance is good to pay large expenses that only last for a set length of time . A mortgage , small business loan , or tuition loan are some large liabilities that most people do not have the money saved up to pay off , if they should die prematurely . But they are expenses that will not last forever . Therefore , Term insurance is a low cost way to cover those large debts for a set period of time , without breaking the bank . Another thing Term insurance is good for is raising a family . I recommend purchasing Term insurance long enough to get the youngest child to at least age 23 . Not in every case , but generally , I feel that Term insurance is not good for small face amounts . Most people who rely on life insurance to cover small debts , will also need life insurance to cover their final expenses . There are so many reasonably priced Whole Life policies that can be purchased in very small face amounts , and for persons of all type of health . And you can really save a lot of money on those policies by buying them at a younger age . Some can be paid up in a set number of years , and some have such good cash value that , if you decided to stop paying on the policy in the future , you would still have a decent sized paid up policy to hold onto . Of course , Term Life is also not good for any need that does not end until death . E.g. Funeral costs , paying estate settlement costs , passing money to grandchildren , etc. . Unless you know that you will have a large stream of money in the future so that you can afford to convert your Term insurance to permanent later on , you are usually better off just buying Whole Life or guaranteed no lapse Universal Life , to start with , for needs that do not end until death . Those are my general opinions on what Term Life Insurance is good for , and what it is not so good for . There are many exceptions as each person 's situation is different and policies can be set up to accomplish different purposes . Please do not hesitate to give me a call if you 'd like to discuss this in person . 