Term insurance is usually purchased to fulfill a short term need. You control the period of the term, meaning the years that you are protecting your beneficiary. For example term insurance is a choice for people to protect their most valuable asset, their house. Term protects their mortgage and they can choose to take the term (# of years of insurance coverage) matching the number of years their mortgage is.

Term insurance is the cheapest form of insurance as it only pays on death and expires when the term is over. Saying that, these policies are renewable and convertible to permanent life insurance. To make it more clear, this policy gives you the insured the choice to convert your term policy into permanent coverage at a later age. By doing this, we can fulfill the current needs of protecting our debts by paying a small premium today while having the option to change the policy to permanent coverage in the future.

Not all companies offer the customers an option to renew or covert a term policy. Always ask your life insurance broker to clarify any doubts or questions you have.

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