Expert Q&A

Term insurance is relatively inexpensive as an initial cost. You pre-determine how long you wish to be covered. At the end of the term period the insurance either stops or renews at a much higher cost. It is purely a mathematical calculation based upon mortality risk factors and insurance company expenses. The problem is if you die after the term period there is no coverage.

In a simple way to answer the question term insurance is cheaper because it only pays if you die within a certain time period; while it builds No cash Value and cannot be borrowed against.