(Term) Life Insurance Buyer's Guide

Term insurance generally has lower premiums in the early years, but does not build up cash values that you can use in the future. You may combine cash value life insurance with term insurance for the period of your greatest need for life insurance to replace income. Term Insurance covers you for a term of one or more years. It pays a death benefit only if you die in that term. Term generally offers the largest insurance protection for your premium dollar. It generally does not build up cash value

• Find out what the premiums will be if you continue to renew the policy
• Ask if you will lose the right to renew the policy at some age
• Some companies charge more for annual renewable policies, but give you the right to keep a policy in force for a guaranteed period at the same price each year
• With a renewable policy, you may need to pass a physical examination to continue coverage, and premiums may increase

You may be able to trade many term insurance policies for a cash value policy during a conversion period -- even if you are not in good health. Premiums for the new policy will be higher than you have been paying for the term insurance.