The Radical Guide to Life Insurance: Why choose term life insurance

Short-term coverage. Term life insurance is a relatively cheap option for those who have short-term coverage needs. Parents of college-bound students buy it to insure that educational expenses are covered in the event of a family loss. As mentioned earlier, those who have longer term needs but cannot afford the hefty premiums of a permanent life policy find that term life is the next best option.

Death benefit. If you die during the period that the policy is in effect your beneficiary receives a death benefit as stated in your policy.

Renewing without a medical exam. Possibly the most important feature of some term life policies is the ability of policy-holders to renew without undergoing an extensive medical exam. This is critical for consumers who become sick during the life of their policy.

Easy to cancel. As you get closer to retirement, your life insurance needs are likely to decline. Your children are better able to support themselves and you can begin to tap your retirement savings. At that point, term life insurance is easily dropped without any associated penalty.

Simple. Term life policies are not complex. You can easily understand what you are receiving. Once you choose the length of the policy, all you need to know is the date of expiration and the timing of premium payments. Other than that, nothing comes close to the complexities of the cash-value proposition.

Competitive pricing. Term life insurance has become a commodity. The market is incredibly competitive leaving consumers with many excellent choices. This is not the case with cash value policies that are typically complex and characterized by variable pricing.

With the advent of the Internet, there are a host of reputable web sites that offer competitive rates on term life insurance. You need to go no farther than your favorite search engine to find the pricing you are comfortable with. Once you have found what appears to be a good price, consult an insurance agent and ask him or her to match it.

Convertible. In some circumstances, term life policy-holders have the option to convert their policies into equivalent permanent or "cash value" policies from the same carrier. On the other hand, cash value policies are designed to be held for life and can impose harsh consequences for those who wish to cancel or purchase a different policy.

Cheap. Not only is term life a low-cost option but it is most affordable when you need it -- that is when you are young, starting a career, enjoying a new baby and in desperate need of coverage. Thanks to your low mortality rate, your insurance policy will not cost you a hefty premium. But be sure to enjoy the term policy premiums while you can. For there is a direct correlation between your increasing age and the cost of your policy premiums.

Insurance agents don't want you buying term life insurance. Insurance agents make more money from selling permanent life insurance than term life. So if you are convinced that term life is right for you, don't let an agent sell you anything else.

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