For how many years should I buy term life insurance?
Term life insurance provides coverage that can help your loved ones financially in the event of your death. But with a few different terms to choose from, you might be wondering how long your term life insurance policy should be. Let’s dive deeper into the questions to help you determine how many years you should buy term life insurance to find a term life insurance quote that works for you and your family.
How long will your dependents have to rely on your income?
One of the main features of term life insurance is that it lasts for a predetermined period of time. Typically, a term life insurance policy will last between 10 and 30 years. If you die during this time, your dependents will receive a guaranteed death benefit that they can use to cover everything from funeral expenses to monthly bills.
When considering term life insurance policies, it’s wise to ask yourself how long you think your dependents will need to replace your financial income. This response differs by family and household. For example, a policyholder with young children can choose 20-year term life insurance, so they will be covered until their children are financially independent. If you can answer this question first, you’ll have a much better idea of what kind of term life insurance policy you should buy.
What is your current age?
Age is another important factor when deciding how long your coverage will last. Say you’re young and you have 30 years left before you retire, for example. In this case, you may consider purchasing a 30-year term life insurance policy so that any beneficiaries who depend on your income can benefit from additional protection. Plus, getting a policy while you’re young can help lock in lower premium payments and save money on life insurance as you get older.
On the other hand, a senior who wants affordable coverage for just a few years may consider purchasing a 10-year term life insurance policy. This can allow them to stick to their budget while providing their families with additional financial security.
Do you have a mortgage or student loans?
If you have long-term debt, such as mortgages, student loans, or car payments, you should take that into account when choosing the length of your term life insurance policy. These costs can represent a large part of the monthly expenses that your loved ones will have to assume after your death. So homeowners with a 30-year mortgage, for example, should consider getting a 30-year term so their beneficiaries can have a financial cushion to pay off that debt.
Do you have any pre-existing health conditions?
Many life insurance customers have a family history of illnesses that they fear will affect them more as they get older. And many may already have conditions that they fear will become more serious or life-threatening over time. You may be able to qualify for temporary coverage and secure future protection for your family if your pre-existing condition is under control. This way, you won’t be in a situation where you want life insurance but can’t find the right coverage.
The bottom line
The length of term life insurance policy that is right for you may depend on your family situation, age, income and any health conditions. When deciding on the length of a term life insurance policy, you need to properly research policies and consider your own insurance needs. This way, you will be able to find life insurance that perfectly matches your personal situation and life goals.