Term life insurance is best when you have limited funds to spend on life insurance, when the need for your life insurance protection is temporary, and when you are not counting on the policy for cash value from which to borrow in the future. E.g. If you want life insurance to pay off $200,000 of college loans if you should pass before your debt is paid, a $200,000 term policy would fulfill that need at a relatively low cost.
Over the long haul, term life insurance is more expensive than whole life or universal life. That is because, your premiums increase with age and there is no leveling effect to keep premiums lower as you get older.
Look at indexed universal life and compare the overall lifetime cost to term life insurance. You might be surprised.
But, if your needs are short term, term life insurance will be cheap but not necessarily the lowest overall cost.
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Look at indexed universal life and compare the overall lifetime cost to term life insurance. You might be surprised.
But, if your needs are short term, term life insurance will be cheap but not necessarily the lowest overall cost.