If you're considering the purchase of term insurance, there are a few things you should know before buying a policy.
The two main drawbacks of term insurance are:
- Coverage is temporary, limited to the duration of your policy term, up to 30 years.
- Term life does not build any cash value inside the policy.
If you outlive the duration of your term life policy and still need life insurance coverage, you will find it costs a lot more than your original policy, and if your health has changed, you may be uninsurable.
Learn more about term life insurance disadvantages.