Term-life insurance is an alternative to permanent life insurance. The basic difference between a term-life insurance and a permanent life insurance is that while the permanent life insurance offers a good investment option along with the life insurance coverage, the term-life insurance is a flexible option where you can choose the amount and term of the insurance coverage.

There are many benefits on opting the term-life insurance.

• It is affordable. While the permanent life policies cost you thousands of dollars per year, the term-life insurance costs only hundreds of dollars. The cost difference is attributed to the investment nature of the permanent life insurance policies.

• It is suitable for a variety of short-term needs. The term-life insurance helps you meet various financial responsibilities such as your child's education, consumer debt, mortgages, etc., that have to be borne by your family in case of your unexpected death. Therefore, it can be considered as the best option to cover a large financial responsibility with less money.

• Term insurance allows you to buy insurance for 10 or 20 years or even more than that. Another benefit is that you can choose the premium as you wish. The annual renewal facility gives you an option to revise the premium or change the term of the insurance.

There are a few negative aspects that have to be considered while opting for the term-life insurance policy.

• The benefit of term-life insurance is availed only if you die! In other words, your money will go a waste if you don't die during the prescribed period. 

• It is difficult to opt for a term-life policy if you cross certain age limit. If you wish to extend the existing term-life insurance after this age, you may have to prove that you are fit enough for the standards of the policy. If you are not able to do so, you may have to convert them into permanent life insurance policies as done in many cases.

Comparing both the aspects of term-life insurance, we can conclude that term-life policy would be a better option if you wish to cover short-term needs.