Benefits of Term Insurance
Term insurance is much less expensive. All term rates are level and “locked-in” at the age of application. Term policies are guaranteed convertible to “permanent” regardless of health conditions. Conversion is guaranteed at the same health class as the converted term policy. Often life insurance needs may decrease over time and the guaranteed conversion to permanent insurance can be at any amount up to the term policy limit (lesser amount). All policies can be continued beyond the term (time period); however conversion is usually a more affordable and valuable option at that time. Mortgage policies are available with a decreasing benefit amount to match your principal balance; however these are usually not cost effective compared to level term insurance.