Main Characteristics:

• Temporary insurance protection
• Low cost
• No cash value
• Usually renewable
• Sometimes convertible to permanent life insurance 

Things to Look For:

• Spousal Rider – some spousal riders requires the individual on the rider to qualify for insurance should something happen to the primary insured.  Make sure you do not have to prove insurability in the event something happens to the primary insured.

• What happens when your term runs out?

• Is it renewable?  Will you be able to prove insurability at renewing your term?

How much will your cost increase based on attained age?

• Is your term benefit level or decreasing?  IE:  If you have a $25,000 Term Life Insurance Policy does your death benefit value decrease over time before the term ends? 

• Is your term insurance accident only?

PERMANENT LIFE INSURANCE:

Here are the main characteristics of permanent life insurance: 

• Permanent insurance protection.
• More expensive to own.
• Builds cash value.
• Loans are permitted against the policy.
• Favorable tax treatment of policy earnings.
• Level premiums.

There are three basic types of permanent insurance: whole life, variable life and universal life.

Things to Think About

If you have life insurance with your employer, who owns the policy?  When you retire or leave the company you may have no life insurance.  At this point, you may not be insurable.