Is Term Life Insurance Expensive?

  1. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! Typically, term life insurance is very inexpensive, when compared to a whole life policy for the same benefits. The reason is that term policies will end at the specified term end date, and there is only a payment if the insured dies within that period of time. Since they don't have to pay off very often, these policies can be offered more cheaply. A whole life policy will always pay off, assuming it is kept in force. Term policies also have no extra bells or whistles, it's straight coverage for a period of time, and that's it. No riders, cash value, or surrender values, like a whole life policy would have. This type of policy is great for covering debt, as they are so inexpensive, and when the debt is repaid, the policy can be ended. I hope that helps, thanks for asking!
    Answered on September 13, 2014
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  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Term life insurance is generally inexpensive for the amount of coverage that you get. Keep in mind that if you are older, or have health problems, the cost of term life insurance is going to be higher than for someone who is young and in perfect health.
    Answered on September 18, 2014
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  3. 10968 POINTS
    Tim Wilhoit
    Owner, Your Friend 4 Life, Brentwood TN
    Of the different types of life insurance term life, whole life, universal life and variable life, term life is actually the least expensive value per premium dollar. The shorter the term, the less expensive term life insurance will become. The common types of time periods of term life insurance range from annual renewable which goes up every year to 5-10-15-20-25-30-35 year terms which increase premiums according to the length of time of a guaranteed level premium. Please keep in mind your premiums have more to do with your personal factors than anything else which is based on your personal risk. Underwriters will consider your age, build, current health, life style, health history, occupation, residence, income and assets when determining your exact premium. I recommend using an independent experienced life insurance broker to help you find the best product at the best price for your unique situation.
    Answered on May 5, 2015
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  4. 1976 POINTS
    Ronald Hinch
    Regional Marketing Director, Capital Choice Financial Group,
    Term insurance is the cheapest type of life insurance and offer the best value to the consumer. The need for life insurance is at it's highest when you have the most debt, mortgage, children at home, and without your income the family would be devastated. When you are older and your debt is gone, mortgage paid, children on their own and there is money saved for retirement the need for a life insurance policy is zero. So, when you buy life insurance only buy term, pay off debt and mortgage, and invest for the future in Roth IRAs and your employer-sponsored plan.
    Answered on April 25, 2016
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