Pros and Cons of Term Life Insurance

Term life insurance is a formidable type of life insurance policy. But before you take the leap, we strongly advise you to digest the following pros and cons of term life insurance.


Affordable: Term life insurance is very cheap and affordable compared to other types of life insurance products. If you have sound health, your monthly premium could be less than $50 for a $500, 000 life insurance policy.

Easy-to-understand: With term life insurance, you are free from all the complexities of life insurance clauses. The only stress you will undergo is your medical exams, which you can do immediately to get approval.

Convertible: The beauty of term life insurance is that you can convert it to universal life insurance policy or whole life insurance policy without much hassle.

Flexible: This insurance policy gives you the leverage to insure your life for a fixed period of time. You can decide to insure your life for 5 years or 30 years, depending on the agreement between you and your insurer.


No cash value: Term life insurance is divorced from the cash value. This means that you cannot take out loan or withdraw money from your account if you sign up for this policy.

Expensive to renew: Even though you can pay a fixed premium for a certain length of time, the amount of premium you will pay will increase anytime you want to renew it.

Expiration: In a word, your coverage is limited for a specific period of time. If you die a day after the expiry date, rest assured that you will get nothing.