What Life Insurance Term Should I Get?

Choosing the Right Term for Life Insurance

 

I want to buy a term life insurance policy but I’m not sure how long of a "term" to choose for my policy.

If you’re wondering how long you want your term life policy to last, you’ll want to consider a few key things:

  • What do you want your life insurance to accomplish?
  • How long will you need life insurance to last in order to accomplish your goal?
  • Will your life insurance needs change over time?


First of all, there are usually several durations of term insurance you can choose from when buying a term insurance policy: 5 years, 10 years, 15 years, 20 years, 25 years or 30 years of coverage.

Next, since the longest term of life insurance coverage lasts for a period of thirty years, you’ll need to decide if you really need coverage for a shorter period of time than 30 years, since your needs may change (for example, get longer) as you mature and take on greater financial responsibility.

You’ll want to match your "term" to your specific needs.

For instance, if you want to pay off your home mortgage loan should you die, then select a "term" that is the same as the duration of your loan, for instance, 15, 20 or 30 years.

And, if you want to provide money to pay for your child’s college education you’ll want term insurance until your child would be out of college, for instance, up to age 22.

So, if your child is 7 years old you may want a 15-year term insurance policy.

However, if you think you may have another child in the future, you may want a 25 or 30-year term life plan, just in case.

You can always cancel your life insurance policy when you no longer have a need for the financial protection.

 

Tips on Buying a Term Life Insurance Policy

 

  • Amount of Coverage – Make sure you use a Needs Calculator to determine how much life insurance you really need.
  • Length of Term – Select a "Term" that meets your specific needs both now and for the foreseeable future.
  • PricingCompare Prices from several insurance carriers to help you find the most affordable policy. 
  • Financial Strength – Review the Financial Strength Rating of the Insurer – the rating is an indication of the insurer’s financial stability and their ability to pay their insurance claims.
  • Renewable Policy – Remember, if you outlive the duration of your term life coverage and decide you want to continue your policy, you may be able to renew your life insurance for another term of up to 10 years, usually. You may renew coverage without having to take any physical exam to prove insurability, but the premium you pay for the life insurance will increase based on your age at the time you renew your policy.


Shop for Term Life Insurance


Top Pick – JRC Insurance

JRC Insurance Group helps you shop, compare and save on life insurance. Regardless of your age or health background, we’ll shop over 40+ insurance companies and find you affordable life insurance you need to protect your family and fit your budget. Compare the best life insurance rates for savings up to 73%. Get Your FREE Quote.

 


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