If you’ve decided to settle for a term life insurance policy, there are things I think you should know. There are things you can do to make sure you get the lowest price without compromising the coverage you’ll get. In fact, I’ll show you how to get the best out of it.

You have to understand that it is different from other life insurance policies as it covers only a specified period. A death benefit is only paid if the insured dies within a given period. This type of life insurance policy lasts only for the given term but could elapse if there is a default in premiums. And no matter how long you stay on a term life policy you do not have any cash value unlike other life policies.

Like most things in life, this policy has advantages over other life insurance policies. There are also things about it that will make you prefer other life policies. I think you should be aware of them. This will keep you informed so you don’t expose yourself.

Let’s take a good look at its advantages first…

It costs less than other life insurance policies. Therefore it could be a life saver at such times in your life when you have a great need for a life coverage but are financially challenged. For example, if you have a mortgage and do not want to put your spouse in hardship if you die.

A term life insurance policy with a convertibility feature gives you the best of term life and whole life insurance. Because it is convertible you can get it when things are tough but you know that yours would be thrown into much hardship if anything should happen to you. When your finances improve you make the move to a more expensive and more beneficial policy.

But, you also need to be aware of these disadvantages…

1) You run the risk of not having any life insurance coverage at critical periods in your life. This is because you’d have to reapply at the expiration of the term you paid for. Some folks become uninsurable at the time of re-application and so are left without any form of life insurance coverage.

However, a guaranteed renewal feature protects you from the likelihood of being rejected as uninsurable. The convertibility feature also protects you from such a situation by giving you the opportunity to convert to a permanent life insurance policy within the term of the policy.

2) There’s only a death benefit and also only if the insured dies within the given period. There’s no form of benefit to be paid out if you live through the term and/or die even an hour later. Many experts have complained about its lack of equity — You only protect yours. You don’t build any value. That you faithfully paid your premiums for a 20-year term does not give you any advantage with your insurer a day after the policy expires.

I think the best way to use a term life insurance policy is to get it (with features that allow you to convert or get guaranteed renewal) while you’re young. However, make sure you convert to a whole life insurance policy at least as soon as your finances improve. Doing this will ensure you get the coverage you need, pay as little as possible and then reap the fruit of a more comprehensive coverage.

You can get more affordable term life insurance quotes if you visit at least three quotes sites. I recommend that you visit not less than three quotes sites because that will ensure you do miss out offers not carried by the other sites.

Here are my favorite pages for life insurance quotes…

Life Insurance Quotes

InsureMe Life Insurance Quotes

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Chimezirim Odimba writes on insurance.