One of the biggest insurance decisions a person can make is choosing the right provider, and this is especially true with life insurance. There are a huge number of providers out there, so it falls on the consumer to sift through various options to determine which one fits their needs the best.
What is term life insurance? Term life insurance is often the cheapest way of buying life insurance, since coverage is provided at a fixed rate of payments over a limited or set period of time. In the event you die during a term, the death benefit will be paid out to your beneficiary. However, if the initial term expires, you will need to purchase additional coverage, with potentially different terms or conditions.
Contrast that with whole life insurance, which lasts over a lifetime and provides other key benefits beyond the death benefit, such as supplementing retirement income.
FindtheBest.com notes that term life insurance can be a better option for less experienced investors. "While permanent life insurance policies can certainly offer advantages to experienced investors (and may ultimately be the best financial choice), their complexity makes them risky for those who are less knowledgeable in this field. For the less experienced client, a simple term life insurance policy is many times the best option.* As a general rule of thumb for less experienced investors, it's a good idea to keep your investing and life insurance needs separate. There are many less complicated places to invest your money than in life insurance."
"*Many companies allow you to convert your term policy into a permanent policy before it expires. If you are still unsure about your long-term needs, choose a term policy that has this option."
To compare term life insurance providers, use the chart below, courtesy of FindtheBest.com.