From Insurance Lounge

Term insurance has its limitations. It isn’t appropriate for all people or under all circumstances. Among the factors you should be aware of:

Purchasing term insurance is often compared to renting a house. When you rent, you get the full and immediate use of the house and all that goes with it, but only for as long as you continue paying rent. As soon as your lease expires, you must leave.

Likewise, term life insurance provides a death benefit only for a specific length of time. When the term coverage expires, so does your protection. Also, if you stop paying premiums, the coverage ends.

There is the very real danger of becoming uninsurable when the term coverage expires. While many term policies are convertible to permanent coverage, others may not be. Most of all, even if the coverage is convertible, there are time limits. If the policy is allowed to expire, you may be required to reapply. If you are found to be uninsurable at that time, you will be without coverage.

Term insurance does not offer the many “living benefits” afforded by permanent life insurance. For example, permanent life insurance policies provide tax-deferred cash value accumulation that can be borrowed against or withdrawn to help fund almost any need.* Term insurance does not build cash value.