Agent Owner, Gilmore Insurance Services, Marysville, Washington State
It's going to depend on the policy. Most term life plans can run out to age 90 or 95. There is no set rule. Others may end at age 70 or 80. When purchasing a term policy that is a great question to ask. Another would be is the Term policy "convertable". Term policy conversion option is when you can change your term policy into another type of plan offered by the insurer. This is done without medical underwriting, in other words the class you were in your term policy can be the class you get in the conversion. This is a very overlooked aspect of term policies. Conversion is a way to keep a term policy from ending a person's coverage.before they're ready to have it end.
Adding the question is probably really asking "when" does the rate guarantee change? While a term policy may run to age 100 that is of little value. It would not be out of the norm for a 20 year term. at the end of it's guarantee period, to have a premium increase from say $60.a month to $600. a month and go up every year after that. By the time it reached it's end date it could easily be thousands a month. So the bigger question is "when" do the rates go up and by how much. Also what are your options if you are no longer in the same good health. BTW, if what you have is an ROP Term plan you will have additional options like getting your 20 years worth of premiums back or better yet, a smaller paid up policy.
Is replacing it a good idea? Maybe, but maybe not. Not all term is created equally.
The agent that sold the policy should have been reviewing this with you throughout the years.
You determine that when you buy it. Purchasing life insurance should never be taken lightly. If you need it for 25-years...don't buy a 20-year policy. You will be told that it is renewable up to age 100 but it would be so expensive that you will never do that.
When you plan your insurance you should cover the needs you have for as long as you are going to have them. After you retire, your replacement of income needs goes way down.
Some insurance needs never go away. Like the insurance you keep for burial expenses or to leave to the family for final expenses. THey will need this money quickly and can't wait on estate settlement so it's best handled with a small whole-life policy.
With your 20-year term policy, just always think of it as 20-years of protection and then walk away from it. It convert it if you bought a good one and need further coverage.
Term life insurance ends at the end of the term. E.g. If you take out a 10 year term life insurance policy, the policy will end at the end of the 10th year. Otherwise, the premium will jump to a much higher price at that time, and go up each year after that.
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Adding the question is probably really asking "when" does the rate guarantee change? While a term policy may run to age 100 that is of little value. It would not be out of the norm for a 20 year term. at the end of it's guarantee period, to have a premium increase from say $60.a month to $600. a month and go up every year after that. By the time it reached it's end date it could easily be thousands a month. So the bigger question is "when" do the rates go up and by how much. Also what are your options if you are no longer in the same good health. BTW, if what you have is an ROP Term plan you will have additional options like getting your 20 years worth of premiums back or better yet, a smaller paid up policy.
Is replacing it a good idea? Maybe, but maybe not. Not all term is created equally.
The agent that sold the policy should have been reviewing this with you throughout the years.
When you plan your insurance you should cover the needs you have for as long as you are going to have them. After you retire, your replacement of income needs goes way down.
Some insurance needs never go away. Like the insurance you keep for burial expenses or to leave to the family for final expenses. THey will need this money quickly and can't wait on estate settlement so it's best handled with a small whole-life policy.
With your 20-year term policy, just always think of it as 20-years of protection and then walk away from it. It convert it if you bought a good one and need further coverage.