06/14/2023
The goal of term life insurance is to help protect your loved ones if you die, and thereâs a lot to consider when choosing your coverage. Your age and your goals for the next few years may affect your choices, as well as whether you have a mortgage, other debt or kids. With so many factors, it can be tough to know where to start.
Here are a few things to consider when choosing the best term length for your unique situation:
Short term (5-10 years) Choose a shorter term if:
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Youâre not sure what life milestones lie ahead, so you need flexibility. (Youâll be able to renew or extend your coverage later.)
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Youâre looking for a low-cost insurance policy.
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You want to take advantage of your younger age and health to get a good rate.
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Your mortgage took longer to pay off than you planned, or your kids arenât financially independent yet, so you need coverage to bridge the gap.
Medium term (11-20 years) Choose a mid-length term if:
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Youâve chosen a shorter amortization period on your mortgage, or youâre already several years into your mortgage.
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You want to provide protection for your children until theyâve finished school or start working full time.
Long term (21-50 years) Choose a longer term if:
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Youâre looking for coverage for a longer period, to cover you through milestones like getting married, having children or buying a house.
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Youâve bought a house and want the insurance coverage for the duration of your mortgage, instead of buying mortgage insurance.
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You have young children and want to make sure theyâre taken care of until theyâre financially stable.
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You want coverage that lasts until you retire, and you want premium payments that stay the same throughout your working life.
Thereâs a lot to consider when choosing your life insurance coverage. Here are a few options to take into account.