Advantage 3.
Younger persons may acquire substantial face amounts of coverage at relatively low immediate cost, perhaps more than their immediate needs, and thereby guarantee that they will have the necessary level of coverage when their needs and family obligations later increase, even if they are then uninsurable.
Advantage 4.
The conversion feature of renewable and convertible term allows policyholders to enjoy higher death protection than they could otherwise afford and later allows them to lock-in their premiums and build cash values when their ability to pay premiums increases.
Advantage 5.
Various types of term insurance — level, decreasing, and increasing — can be combined as riders with other types of permanent insurance to create a package that meets a person’s special death protection, savings, and affordability needs.
Advantage 6.
Life insurance proceeds are not part of the probate estate, unless the estate is named as the beneficiary of the policy. Therefore, the proceeds can be paid to the beneficiary without any delay caused by administration of the estate.
We will discuss the last 4 advantages of term life policy here.