Deciding How Long to Be Insured
How Long Do You Need Your Term Life Insurance Policy to Last?
Choosing the right length of time for your term policy to provide you with protection is one of the most important decisions you will make when buying term insurance.
When selecting the right duration for coverage you’ll want to consider the reasons you are buying life insurance in the first place.
Why do you need coverage, for how long and what goals do you want the insurance to accomplish?
For example, do you want to make sure your 10-year-old child has money to go to college should you pass away unexpectedly?
If so, you may need a 15-year term life policy which would protect your family until your child is 25 years old and out of college.
Or, you may be buying a new house and have a 30-year mortgage you want to protect for the family.
In this case, a 30-year term life policy can guarantee your loved ones will have the money needed to pay off the home mortgage loan in case you pass away.
That way, they can remain in the home they shared with you.
Basically, you want to figure out the reason you need coverage, and the longest period of time you need life insurance to accomplish your goals.
Then, choose a "term" that matches your specific needs.
How Long Does Term Life Last?
A term insurance policy will last for the entire duration of the "term" you select. The longest duration of coverage for term life is usually 30 years with most insurance carriers.
What Terms are Available for Coverage?
When selecting a term for term life insurance you may have the options of choosing coverage that will last for a period of 5, 10, 15, 20, 25 or 30 years.
However, these term options may vary by life insurance company.
Can I Change My Term for Term Life?
Once you have started your term life policy you may either discontinue coverage or maintain coverage in force for the entire duration – these are the most common options available.
It may be possible to have the policy term changed, which would also change the amount of premium you pay the insurance carrier for your life insurance.
However, to change the term you may need to cancel coverage and begin a new policy for the different term you wish for your coverage.
This will depend on the insurance company rules regarding a change of policy term duration.
What If I Need Life Insurance for a Longer Period of Time?
If you start a term policy and decide during your policy term that you need your life insurance to last for a longer duration, you may be able to renew your coverage for an additional term when your original life insurance policy expires.
However, the renewal policy premium will be based on your age at the time you renew coverage, which means you will pay a higher price for the renewal policy.
How Age Affects Length of Term Availability
Your age will have an impact on your options for term insurance. The older you are the shorter the term available for coverage.
For instance, a forty-year-old may be able to get 30-year term insurance, while a 60 year old may be limited to a maximum term duration of 20 years.
Term Life Insurance Quotes
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