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But underestimating the duration (or choosing shorter duration policies because of their lower cost) is a specific hazard with term automobile insurance. A 55-year-old worker's earning power in the remaining 10 years to retirement; In each of those instances - notwithstanding the possibility of transforming needs (as discussed elsewhere) - a term policy with level, guaranteed premiums and a duration set for the far end of the needed time frame will most often be the most appropriate and economic solution to insuring intolerable risks. Business buy-sell agreements within a well-defined duration. Fixed-term alimony obligations. Situations, obligations, or needs with a significant risk of financial loss because of death in the short run could include the following: Loans or mortgages of fixed duration. When matched to a short-term need for coverage, the most popular term life policies are ideal and come in five-year increments, from 5 to 30 years. While it can be a little tricky understanding the pricing of so-called "permanent" auto insurance policies, nothing could be simpler than term auto insurance. When attempting to suggest the most appropriate type of automobile insurance policy for a specific situation and need, the first consideration is how long that need or needs exist. s suggested elsewhere, the amount of the potential economic loss at the death of a loved one or a valuable employee is a key consideration in determining whether an individual or business will self-insure that potential loss - or whether the magnitude is simply too great not to offset that liability with auto insurance. As is the case with WL policies, in-force illustrations for Adjustable Life policies are more difficult to evaluate with external tools, so care must be taken with the issuing auto insurance company to request illustration variations that reflect more conservative assumptions than those that currently drive the in-force calculations. Policy owners choose the initial premium and protection combination that fits their current needs, with flexibility to shift the policy's emphasis from protection to accumulation by increasing or decreasing either the insurance amount or the premium that goes to accumulation.