Term Insurance - Provides coverage for a specific period of time.  Typically 1, 5, 10, 15 and 20 year periods.  Term insurance is the most cost effective method for providing life insurance coverage for a short period - 20 years or less.

Advantages - Client receive most coverage for least expense.  Frees up capital for other investments.  Can be converted to permanent insurance within a certain period with no evidence of insurability.

Disadvantages - If coverage is needed for an extended period of time, then the premiums will exceed the outlay when compared to a permanent type of product such as whole life or universal life.  Client may have to provide continuing evidence of insurability at regular intervals or pay significantly higher premiums.  If the clients health has changed they may not be able to afford the increased premiums.

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Securities offered through Mutual Service Corporation. Mutual Service Corporation and LPL Financial are affiliated companies and are members of FINRA/SIPC. FINRA web site is www.FINRA.org.  Investment Advisory Services offered through Financial & Investment Management Advisors, Inc., an SEC Registered Investment Advisory Firm. Financial & Investment Management Advisors, Inc. is not affiliated with Mutual Service Corporation or LPL Financial.

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Last modified: June 17, 2008