What is generally the primary benefit of a term life insurance policy?

The primary benefit of a term life insurance policy is indeed the lower initial premiums. Term life insurance is designed to provide coverage for a specified period, or term, such as 10, 20, or 30 years, and it typically offers significantly lower premiums compared to whole life or universal life policies. This affordability makes term life insurance accessible for many individuals who need protection for their family's financial future without the higher costs associated with permanent life insurance policies.

This lower premium structure is particularly advantageous for individuals who may have tight budgets but still require a significant amount of life insurance coverage to protect their loved ones. Additionally, since term life does not accumulate cash value like whole life policies, all of the premiums go directly toward providing the death benefit during the coverage period, contributing to its low cost.

Permanent coverage for life, cash value accumulation, and investment opportunities are characteristics associated with whole life or universal life insurance policies, which typically have higher premiums and different structures compared to term life.