If you are currently looking to get a life insurance policy, you have two main options to choose from: term life insurance and permanent life insurance. While permanent life insurance lasts for your entire life, term life insurance is only meant to provide benefits to your beneficiary for a certain period of time, after which you will need to renew the policy. Here are some pros and cons of choosing a term life insurance plan.
Pro: It is less expensive when you are a younger age
One of the main benefits to this policy is that is can be very affordable if you are a younger age and don't have any major medical problems. While you will need to renew it later down the line and reassess the premium, it is a good thing to have to protect your family. Even if you are young, you have family members that could suffer financially as a result of your passing. This is why it is good to get a term life insurance policy now.
Con: You might be denied coverage if you are not in good health
Unfortunately, term life insurance is not easy to come by if you are not in good physical health. If you are a chronic smoker, have a serious disease or cancer, you might be denied completely. Even if you are not denied due to your health status, you may be paying higher premiums based on your age and health, which can be a disadvantage.
Pro: It is easy to sign up for term life insurance
As compared to a permanent life insurance policy, term life insurance tends to be straightforward when signing up for it. There are no complicated terms aside from choosing the length of time to get the policy for. There shouldn't be any additional fees involved or waiting periods to have coverage from the policy.
Con: There aren't cost savings benefits
With term life insurance, you only have coverage if you pass, not for any living benefits. This is different from a permanent life insurance policy, where there are some living benefits if you choose to use them. The only way to get paid from term life insurance is following your death.
Pro: You can switch to a permanent policy later on
A great benefit for term life insurance is that it is easy to get and affordable at a young age, but then as you get older, you always have the option of converting this policy to a permanent life insurance policy. This will give you more benefits and other features that a term insurance policy doesn't have.