Term Life Insurance Advantages and Disadvantages

Submitted by frndzzz on Sat, 06/26/2021 - 14:39

Some of the advantages and disadvantages of term life insurance are as follows. So let us check the major advantages and disadvantages listed below. 

Advantages of term life insurance

1. Term life insurance has lower initial cost compared to permanent life insurance.

2. Term insurance is one of the sensible choice for people who are building a family. 

3. In this type of insurance people can buy term because the price is low initially and convert it later on as per requirement. 

4. Term life insurance is one of the good choice for addressing requirements that will disappear in time. 

5. Term life insurances one of the simplest form of life insurance to understand.

Disadvantages of term life insurance

1. The specific restricted time frame in term insurance may be an issue for some people.

2. Term insurance has no cash value, the policy does not grow in value over time.

3. If the person has any health issue then it becomes difficult to convert or renew.

4. Term life insurance is not portable, person can convert only if he uses the same company from where he purchased the policy. 

What are the advantages of life insurance ?

Life insurance protects the family and pays chronic illness or long term care. It gives financial security to the family. Life insurance has also some tax benefits and it is one of the best option for investment. 

What are the disadvantages of life insurance ?

Buying expensive life insurance policy may increase expense, it also has some risk of not paying policy.