Term insurance comes from the term temporary, certain period or certain term. Term life insurance can be purchased for 5 years, 10 years, 15 years, 20 years, 25 years and 30 years. The length of time that you should have it depends on a case by case basis. You have to look at debt, expenses, the age of children, is there a college education to fund to determine what would best number of years to purchase the term insurance.
You should have Term Life Insurance as long as you have needs that would be unmet if you were to pass away. E.g. Do you have children at home who rely on your income? Debts that your family would be left to pay? A business partner who would be left hung out to dry? Would loved ones need to take up a collection to pay for your funeral?
These are just some of the many reasons people keep their Term Life Insurance. If all your needs are provided for and you feel confident that no end of life medical bills or other expenses will deplete your reserves, you no longer need Term Life Insurance.
The length of time needed for a term life insurance actually depends on the reason the policy was purchased. If the policy was purchased to insure a debt and the debt is repaid, then the policy may need to be cancelled. If the policy was purchased to replace income and the need is still present, then the policy should be left in force or reviewed to be changed if need be,
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
Term life insurance is really only for specific needs because term life is only insurance against a person dying "too soon". (Of course dying at any time is "too soon" in most people's opinion!) The point being that there are debts or spouse and or children that would need to be financially cared for in the case of the demise of the insured. And that after a certain point in time those issues would no longer be relevant.
In my opinion Whole Life is a much superior product and has benefits and advantages for the entire life of the insured no matter how well off the family is and if there are no debts! You should consult with an experienced Insurance Adviser/ broker to help you with your specific situation.
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These are just some of the many reasons people keep their Term Life Insurance. If all your needs are provided for and you feel confident that no end of life medical bills or other expenses will deplete your reserves, you no longer need Term Life Insurance.
In my opinion Whole Life is a much superior product and has benefits and advantages for the entire life of the insured no matter how well off the family is and if there are no debts! You should consult with an experienced Insurance Adviser/ broker to help you with your specific situation.