5 Year Term Life Insurance is insurance that the premium stays level for a 5 year period and then increases. The policy will renew at a higher premium until it expires at a given age age 85 for example. The premiums are low initially until,the become very high in the later years. Usually, this type of insurance is convertible to a level premium permanent insurance plan until a given age say age 65.
10 year term life plans have become much more popular than the 5 year plans.
An independent insurance broker, representing several companies, can help you find the right policy at the right price.
If you have any questions, or feel that I could be of assistance, please do not hesitate to contact me.
5 Year Term Life Insurance has the premiums locked in for 5 years. People who have a short term loan are the most common seekers of of 5 year Term that I see. In reality, the cost of 5 year Term is often higher than 10 year Term because there are so few companies that offer five year Term Life Insurance. When you buy Term Life, you can drop it at any time without penalty. So getting 10 year Term may be your better choice.
The only reason to carry a 5 year level term is for a 5 year or less debt. Typically 5 year term is harder to find as many carriers start at 10 year term. I find in shopping that you can purchase 10 year term cheaper than buying a 5 year term just because of competition. If your need for life insurance is greater than 5 years seek the advice of an independent life insurance broker. Term life insurance policies rates increase as much as ten fold at the end of the term and force most back into the market. You will be 5 years older and perhaps not in as good of health.
That is a great question! A 5 year term policy is exactly what it sounds like. It is a life insurance policy that has a 5 year lifespan. At the end of the 5 year term, the policy and coverage end. This type of policy is typically purchased to cover a debt, that is usually repaid within that time period. Term life policies have no value unless you were to pass away during the term, and can be renewed, but the renewal premiums start at 110% of what you paid before, and increase dramatically. I hope that helps, thanks for asking!
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10 year term life plans have become much more popular than the 5 year plans.
An independent insurance broker, representing several companies, can help you find the right policy at the right price.
If you have any questions, or feel that I could be of assistance, please do not hesitate to contact me.