06/14/2023
The goal of term life insurance is to help protect your loved ones if you die, and there’s 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:
✅You’re not sure what life milestones lie ahead, so you need flexibility. (You’ll be able to renew or extend your coverage later.)
✅You’re looking for a low-cost insurance policy.
✅You want to take advantage of your younger age and health to get a good rate.
✅Your mortgage took longer to pay off than you planned, or your kids aren’t financially independent yet, so you need coverage to bridge the gap.
Medium term (11-20 years) Choose a mid-length term if:
✅You’ve chosen a shorter amortization period on your mortgage, or you’re already several years into your mortgage.
✅You want to provide protection for your children until they’ve finished school or start working full time.
Long term (21-50 years) Choose a longer term if:
✅You’re looking for coverage for a longer period, to cover you through milestones like getting married, having children or buying a house.
✅You’ve bought a house and want the insurance coverage for the duration of your mortgage, instead of buying mortgage insurance.
✅You have young children and want to make sure they’re taken care of until they’re financially stable.
✅You want coverage that lasts until you retire, and you want premium payments that stay the same throughout your working life.
There’s a lot to consider when choosing your life insurance coverage. Here are a few options to take into account.