Term insurance is a fairly simple product. It builds no cash value and typically has a guaranteed fixed premium for a limited period of time.

The biggest mistake we see consumers make when buying term insurance is that they don’t know if they have purchased a true term policy or a term/universal life policy. The difference is that the term/universal life policy does not have a traditional conversion option. If you want to continue that policy past the guaranteed period of time, you must understand the set policy details (as opposed to buying an actual convertible policy and converting it into some form of a permanent plan).

The answers to the questions on this checklist will help you determine whether a term policy will meet your needs.