Comparatively, term life insurance policies might seem inferior to whole life policies. Still, there are many reasons for choosing term life insurance. These include: 

• Money. A whole life insurance policy, especially a cash value policy, is generally more expensive. A term life insurance policy allows you the same type of coverage through your death benefit, but for a lower price, albeit during a shorter timeframe. 

• Coverage needs. Some people only want coverage until they have paid off certain debts, for example, the mortgage. Your financial security might be alright, but if you are working to pay off a shared mortgage, car loans, student loans, medical bills or other expenses, any left-over charges will fall to your loved ones if you pass away before they are paid. A term life insurance policy allows you to purchase a policy for the time it takes you to pay off your loans or debts.  

• Policy eligibility. When you apply for life insurance, your prospective agent will take a close look at your overall risk as a policyholder. A primary risk factor is your health, which is a huge indicator of how long you are likely to live. Unfortunately, many people with significant health issues cannot qualify for whole life policies because of this risk. Still, they might be able to qualify for quality term life policies, which can provide massive reassurance to those who want the benefit of life insurance. 

Don’t hesitate to talk to your agent about how to optimize your term life insurance to your advantage. If you pass away before the policy ends or before you pay off the debt, the life insurance policy can help your loved ones handle the costs.