For the past 70 years, there has been a continual shift of life insurance sold in the U.S. away from permanent life insurance and towards term life insurance.  While this trend has been slowed somewhat by the very competitive nature of newer cash value life insurance products, the popularity of term life insurance remains.

Term life insurance provides the life insurance protection for a limited and specified number of years. The face amount of the term policy is paid only if death occurs during the specified term of the policy.  In the event of survival, nothing is paid, i.e., no cash values, etc.  Nothing is paid if death occurs after the expiration of the term of the policy.

Initially term life insurance is less expensive than permanent cash building life insurance. However, once the original contract allows, premium will very often increase rapidly the further into of the term of the policy.

There are three (3) important factors to keep in mind when considering term life insurance – renewability, convertibility and the relationship between premium-waiver and conversion features.