How long should term life insurance last? (Video)

Term life insurance how long should it last a life insurance policy’s term length is simply the amount of time the policy lasts common term blanks are 10 20 or 30 years your term length is based on three factors number one how long your debts and outstanding liabilities will last like if you need to pay off loans or to raise kids number two how much can you afford a longer time period means higher premiums and number three how much you qualify for and this is based on your age and income the term should cover your financial obligations and outstanding debts if you have a 30-year mortgage then you’ll want a 30-year term so those mortgage payments are protected if you die during that time your beneficiaries will receive a death benefit if you die after your policy runs out and you didn’t get additional coverage or convert your term policy into a permanent policy your beneficiaries won’t receive the death benefit the right term length for your policy depends on the reason you’re buying the policy most people buy term life insurance to protect their family financially in case of an unexpected death situations to consider are if you just got married just had a child bought a house and if you have any outstanding loans or even co-signed on loans the longer your term length the higher your monthly premiums will be because the longer term makes it more likely that the insurance company will actually have to pay out that death benefit the advantage of buying a policy with a longer term is that it locks in lower premiums so if you develop a serious illness during that term your premiums won’t increase if you buy a shorter term length and develop that same serious illness and then you want to apply for additional coverage later your older age will mean higher premiums and the new medical diagnosis could mean that you’re uninsurable choose a term length that allows you to afford your premiums and provide meaningful protection when your coverage expires you should make sure you have enough savings and assets to pay for end-of-life care insurance companies look at your life expectancy the older you are the less options you might have each life insurance company operates in their own way so it’s important to talk to an independent life insurance agent about your specific situation i’m kelly augs perker with steadfast insurance if you have any questions or want to learn more connect with me online or give me a call and i’m happy to help you