Life Insurance Direct What Are The Pros And Cons Of Term Insurance | Page 6

Disadvantages
Con – Renewals can limit coverage. At the end of a term for insurance, renewing it may not
always be automatic, especially as a person ages. The older a person gets, the more likely life
insurance companies are to add clauses to the policy, limit coverage, or increase premiums.
Con – The biggest drawback to term life insurance is that it usually provides limited coverage. This
form of coverage can be limited to death benefits only in certain circumstances.
Con – It doesn’t accrue funds. These term insurance plans offer no dividends to the keeper and
can’t be cashed out because they don’t actually accrue any real cash because the person usually
outlives the term of the contract.