When should you consider buying a term life policy?

When should you consider buying a term life policy?
Term life insurance is one of 2 main types of life insurance, the other often being called "whole life". The main difference is that term life provides only an indemnity benefit (it pays the face amount of the policy to the named beneficiary(ies). In contrast, a whole life insurance policy accumulates cash value. You might think of the cash value as a small savings account built into the policy (but it differs in many respects from a savings account per se). The cash value accumulates slowly at first but faster as the policy remains in force. Naturally, term life is less expensive because it lacks the "savings" element, and barring health issues of the proposed insured, it can be very inexpensive.
What you have to bear in mind is that the premium for term life will increase with age, although it is possible to buy "level term"; the premium for level term remains the same for a stated period of time--for example, 15 or 20 years.
The right time to buy term life or any other kind of life insurance is different for different people. In general however, the time to buy life insurance is when you are financially responsible for other people (spouse, children, elderly parents), or when you have accumulated financial obligations the satisfaction of which you want to ensure. Was this answer useful?YesSomewhatNoThanks for the feedback! Edit Answer byRahul Ghosh Confidence votes 4 As soon as you have money and you feel that there are dependablepeople on you. Life has no surety and you should always care forit.