Term Life Insurance

Who it may be appropriate for

Term insurance is commonly considered by people who have dependents relying on their income, a mortgage or significant debt, or financial obligations that are expected to decrease over time. It is also used by professionals who want coverage during their peak earning years and by parents who want to ensure their children's financial security until they are self-sufficient.

What financial need it addresses

Term insurance is designed to replace income or cover specific obligations if you die during the coverage period. Common uses include replacing lost income for a surviving spouse or partner, paying off a mortgage, funding children's education, or covering business obligations.

Potential advantages

• Generally less expensive than permanent insurance for the same death benefit
• Straightforward structure—coverage for a set period at a fixed premium
• Can be aligned with specific financial obligations (e.g., a 20-year mortgage)
• Some policies include conversion options to permanent coverage

Important limitations and tradeoffs

• Coverage expires at the end of the term; renewal may be significantly more expensive
• No cash value accumulation
• If your health changes, obtaining new coverage later may be more difficult or costly
• Does not address permanent or lifelong planning needs

Common misconceptions

Term insurance is sometimes described as "wasted money" if you outlive the policy. This misunderstands its purpose—term insurance is designed to protect against a specific risk during a specific period, not to accumulate value. It is also sometimes assumed that term insurance is always the right choice because it is less expensive. Whether term or permanent insurance is more appropriate depends on your planning needs.

Questions to consider

• What financial obligations would I want covered if I were no longer here?
• How long would those obligations last?
• Do I have dependents who rely on my income?
• Do I have existing coverage through work, and is it sufficient?

The evaluation and underwriting process

If term insurance appears appropriate after our conversation, I will explain the available options, coverage amounts, and premium ranges. Applying for coverage involves completing an application and, depending on the amount and carrier, potentially a paramedical exam. The carrier reviews your health history and other factors before issuing a decision. I will walk you through each step.