What are three benefits of term life insurance?

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Term life insurance offers several benefits, three of which are:

  1. Affordability: Term life insurance typically offers lower premiums compared to permanent life insurance policies such as whole life or universal life. This affordability makes it accessible for individuals who need coverage but may have limited budgets. Since term life insurance provides coverage for a specified period (the “term”), usually ranging from 10 to 30 years, premiums remain consistent for the duration of the term, providing predictability for budgeting purposes.
  2. Flexibility: Term life insurance policies offer flexibility in terms of coverage duration and coverage amount. Policyholders can choose the length of the term that best suits their needs, whether it’s to cover a mortgage, until children are grown, or until retirement. Additionally, the coverage amount can be adjusted to align with changing financial obligations. Some term life policies even offer the option to convert to permanent life insurance later on if the policyholder’s needs change.
  3. Simplicity: Term life insurance policies are relatively straightforward compared to permanent life insurance options. They focus solely on providing a death benefit within the specified term without building cash value or incorporating complex investment features. This simplicity makes term life insurance easier to understand and manage, especially for those who prioritize simplicity and straightforward coverage over the investment component offered by permanent life insurance policies.