Term life insurance is recommended because it’s the cheapest coverage for indemnifying economic loss to your beneficiaries. Depending upon your age, you can secure up to 30 years of guaranteed coverage and if you purchase a term life insurance policy with a conversion provision, you can have the option of extended your coverage with permanent life insurance without medical evidence.
Now should term life insurance be recommended? If your financial liability is temporary, then perhaps you should but term, but buy it with a conversion provision because life doesn't remain the same. Liabilities change, so keep your options open.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Why is term life reccommended? Because mainly the people who recommend it have something else to sell. A smart person will review term, universal and whole life in their search for what works for them. That's the key, what works for you? Not the advisor, not the guy selling a book, but works for you. You'll often find a disclaimer by those who offer financial advice, calling it "entertainment". I want my choices to work for me, not entertain me.
Specialist, LTCi, DI, Annuities, Life, Designs In Life, LLC, Utah
There are two financially oriented universes: an insurance planning universe, and a financial planning universe. In the former, it never makes sense to buy term and those that live in that universe will give you an infinite number of reasons why - in the long run - it is a waste of your money. If you buy term, you will be called a "termite". In the latter, term insurance - or permanent insurance - are viewed as financial vehicles that can be used to achieve a certain objective or several objectives at once, through leveraging: paying "small" dollars now for "large" dollars later. It's called "using the right tool for the job".
Neither universe is right or wrong, although I would imagine you know which universe I come from. The point is to stay fixed on how much death benefit (coverage or face amount) you need and for how long. The way I see it, one needs term when they have a high need and a low budget, and a type of permanent insurance policy for when they eventually die. In other words, you need both. I recommend buying term in the higher amount that you need early in life (wife, kids, education, mortgage, etc.) for the period of time you are most likely to need it (20-30 years), but at the same time, buy a small face amount of permanent insurance to cover final expenses, projecting forward a nice, long lifetime and what it will probably cost to put you in a box, or reduce your mass through pyric methodolgies and put you in an urn. Allow for other final expenses, such as possible debt, medical expenses not covered by insurance, and a little "transitional money" for those you leave behind. That way, when your term runs out, you'll have only the permanent plan to pay premium on, and, if you design it prudently, you might find that your final expense policy no longer needs any premium when your term runs out.
You'll need an experienced and knowledgeable agent from the appropriate universe to put this together for you so that it fits your budget.
Final note: As has been appropriately mentioned in an answer above, be sure to purchase only "fully convertible term" for the reasons cited therein.
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Now should term life insurance be recommended? If your financial liability is temporary, then perhaps you should but term, but buy it with a conversion provision because life doesn't remain the same. Liabilities change, so keep your options open.
Neither universe is right or wrong, although I would imagine you know which universe I come from. The point is to stay fixed on how much death benefit (coverage or face amount) you need and for how long. The way I see it, one needs term when they have a high need and a low budget, and a type of permanent insurance policy for when they eventually die. In other words, you need both. I recommend buying term in the higher amount that you need early in life (wife, kids, education, mortgage, etc.) for the period of time you are most likely to need it (20-30 years), but at the same time, buy a small face amount of permanent insurance to cover final expenses, projecting forward a nice, long lifetime and what it will probably cost to put you in a box, or reduce your mass through pyric methodolgies and put you in an urn. Allow for other final expenses, such as possible debt, medical expenses not covered by insurance, and a little "transitional money" for those you leave behind. That way, when your term runs out, you'll have only the permanent plan to pay premium on, and, if you design it prudently, you might find that your final expense policy no longer needs any premium when your term runs out.
You'll need an experienced and knowledgeable agent from the appropriate universe to put this together for you so that it fits your budget.
Final note: As has been appropriately mentioned in an answer above, be sure to purchase only "fully convertible term" for the reasons cited therein.