Term Insurance

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

Many term plans are renewable after five, 10 or 20 years without providing proof of health. The price will increase to be appropriate for your age at renewal, and 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.

Many term insurance plans do a good job of meeting immediate needs and provide the freedom to later convert to a permanent insurance product without providing proof of health. However, this ability to convert to permanent insurance often expires around age 65 or 70.

When purchasing term insurance, it’s important to understand what renewal and conversion options you have.

Be sure to consider both the initial premium and the renewal rate when reflecting on the cost of term insurance. Also, consider whether evidence of insurability is required at time of renewal.