The place for term insurance
Is there a place for term life insurance in your portfolio? Yes, there is.
Here are some examples:
You have a debt for a fixed amount of time you want to indemnify, such as a mortgage or business loan;
You are in a business partnership agreement for a fixed amount of time that needs funding;
You are obligated to carry life insurance for a fixed amount of time, as per a divorce decree;
Note that in all these cases, the coverage is needed for a fixed amount of time. Term insurance is designed to give you the lowest price for exactly that – a fixed amount of time.
What about all the other needs for life insurance that are more open-ended, such as family protection, pension maximization, and estate planning? You can buy additional, permanent policies to cover those.
Would it be more cost-effective to have just one policy to insure everything? Run the numbers and find out 🙂.