What is a 5 year term policy? As the name suggest it is a policy that covers you for a specified amount for a specified premium for a period of 5 years.
Typically the policy renews at a higher premium at the end of each 5 year period. You should check to see if the renewal is guaranteed and if so at what premium.If there is a possibility you will need permanent coverage you should check into what conversion options are available.
If you are in the market for coverage, an independent agent /broker can help you find the right policy at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Great question! This is a type of policy that fills a short term need - in this case 5 years. Term policies' coverage stops at the end of that period. It then has to be renewed, and becomes much more expensive, so carefully consider what you want it for. Some good uses for this type of policy? You need coverage, but at this point can't afford a whole life policy. Or you want to cover your child's' college expenses for the time they will be in school. If you would like more detail, please feel free to contact me, I'm happy to help. Thanks for asking!
President, Lane Independent Agency, Southern California
Term policies last for a specific number of years so long as you pay the premium. In this case, it would be for five years. After that the policy would end. You would then have to reshop the policy to get the best price, assuming your health remains good enough to qualify. That is why you should buy a longer term policy or a whole life permanent policy. Thank you. GARY LANE
President, Lane Independent Agency, Southern California
Terms if bought for a specific number of years' coverage. If you pay the premium on a five year term, it lass five years and then ends. If you want more, you have to shop for another policy at that time. It makes sense then to buy a longer term or a permanent whole life policy. Thank you. GARY LANE.
A 5 year Term Life Insurance policy has the rate locked in for 5 years. In my experience, the premiums for 5 year Term policies often exceed the premiums for 10 year Term, because there are far fewer companies that offer 5 year Term. If you purchase a 10 year Term policy and only want to keep it 5 years, you can simply cancel it after 5 years with no penalty.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
As mentioned above, a 5 year term insurance is an insurance policy that is in force for 5 years then expires. It is designed for a short term need and or specifically for the purpose of converting to a Whole Life policy within that 5 year period. Most Term policies are "convertible" to permanent insurance and some companies limit the type of permanent insurance their term policies may be converted to.
In "converting" a term to a permanent policy what happens is the face amount of the Term, or a portion of that amount is converted to a Whole Life or Universal life policy without the insured having to undergo additional medical testing or underwriting. The premiums paid to the Term policy are not credited to the new permanent policy and the new premium will be based on the current age of the insured.
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Typically the policy renews at a higher premium at the end of each 5 year period. You should check to see if the renewal is guaranteed and if so at what premium.If there is a possibility you will need permanent coverage you should check into what conversion options are available.
If you are in the market for coverage, an independent agent /broker can help you find the right policy at the right price.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
In "converting" a term to a permanent policy what happens is the face amount of the Term, or a portion of that amount is converted to a Whole Life or Universal life policy without the insured having to undergo additional medical testing or underwriting. The premiums paid to the Term policy are not credited to the new permanent policy and the new premium will be based on the current age of the insured.