There are many reasons that people buy life insurance. Depending on your age, financial situation, and dependents, your term life insurance policy can be customized to fit the death benefit amount and length of time that you need coverage. With term life insurance, you can choose a specific amount of time that your coverage will last. This way, your life insurance is built to cover your loved ones in the event you are no longer able to support them.
We’ve gathered some of the most common questions people ask when they are trying to determine the term that is best for their needs. Read on to discover how long your term life insurance policy should last.
Term life insurance can last anywhere from five years to 30 years. Within this, you can adjust policy length in five-year increments to best fit your needs. Keep in mind that a longer term length will generally be more expensive – as the insurance company’s risk increases with over time (i.e. their risk of having to pay policy benefits increases with age).
One of the most common reasons for buying term life insurance is to provide funds to pay off your outstanding mortgage balance and other financial obligations in the event you pass away while you still have people who rely on you. Life insurance can provide relief for your loved ones so they can stay in the family home without having to struggle to pay the bills.
Many people purchase term life insurance to provide a safety net for their loved ones to cover costs of living and additional expenses such as a child’s college education, medical bills, etc. When an individual reaches retirement age, they most likely will no longer have dependents, so they will theoretically no longer need this safety net.
In many cases, you can get a more affordable term life insurance policy then convert to permanent coverage later in life if you think you need ongoing coverage. Keep in mind that permanent insurance will likely be more expensive, but your coverage will last through your entire lifetime.
Some insurance companies offer a unique benefit called annual renewable term life insurance. This policy allows you to guarantee coverage for a longer term (10 – 20 years) but the premiums will increase as you age. If you are trying to cover a short-term financial obligation with life insurance, this could be a great solution.
Buying term life insurance while you are young and relatively healthy can help you lock in a low monthly payment. If you’re ready to take the next steps towards a financially secure future, we’re here to help you make the best decisions for your budget and needs.
If you’d like more information on which term best fits your budget and goals, Quility’s trusted insurance advisors are just a click away. If you are ready to get coverage now, our online application for term life insurance takes less than ten minutes.
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