Most people choose term life because they get a higher coverage amount for each premium dollar spent. The other time when term is used most efficiently would be to ensure financial stability. For example, let's say you have 10 years left before you and your spouse retire. In that time, you plan to be heavily funding your savings and retirement plans to meet your needs in your later years. If you pass away before that happens, your spouse might be left with minimal funds to live on. A 10 year term policy would ensure that the funding is completed whether you live or not.
Another example is when your kids are approaching college age and you do not have a large amount of savings set aside already. Many people plan to 'pay as they go' with the college expenses, but what would happen if you passed away before that? Term insurance could make sure the financial obligations for their education could be met.
Without knowing more about you, it is impossible to know whether you should get Term Life Insurance. The type of life insurance you should get, or whether you should get life insurance at all, is best determined in a consultation with an experienced agent who can help fit the product to your needs and budget. This can be done in person, over the phone, or even by email. But one size does not necessarily fit all, and talking over your situation with someone who can help you sort through the thousands of products can be extremely helpful.
Generally speaking, though, there are two main characteristics of someone who should buy Term Life: they need a lot of coverage for the least possible cost now, and they will not need as much (or any) life insurance in the distant future.
The simply rule of thumb to purchase term life insurance is to create an instant estate in case of the primary wage earners untimely death. You want to purchase enough to pay off your loved ones debt, replace your income and if young children are involved enough to educate them. The simple rule of income replacement is 10 times your income to invest.
That is a great question! Why should you get term insurance? There are three good reasons. The first would be that it is the most affordable coverage that you can get. Notice that I said "affordable", and not "best". If you need $100,000 worth of insurance, and cannot afford a whole life policy for that amount, then a term policy is certainly better than no policy at all. The second is if you are only looking to cover a short term debt, like an expected 5 year college debt. It doesn't make sense to purchase a whole life policy to cover a debt that you will pay off in a short amount of time. I hope that helps, thanks for asking!
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Another example is when your kids are approaching college age and you do not have a large amount of savings set aside already. Many people plan to 'pay as they go' with the college expenses, but what would happen if you passed away before that? Term insurance could make sure the financial obligations for their education could be met.
Generally speaking, though, there are two main characteristics of someone who should buy Term Life: they need a lot of coverage for the least possible cost now, and they will not need as much (or any) life insurance in the distant future.