verifiedCite
While every effort has been made to follow citation style rules, there may be some discrepancies. Please refer to the appropriate style manual or other sources if you have any questions.
Select Citation Style

When should you choose term life insurance?

Term life insurance can be useful when someone needs a high amount of coverage for a set period but has limited money available for higher permanent-policy premiums. For example, a young family may need coverage for mortgage liabilities, income replacement for working parents, and future college expenses. It may also fit people who already have investments, assets, and a solid strategy for the future, so they do not want to pay extra for the cash-value feature of permanent insurance.