When buying Term Life Insurance, it is a good idea to match the length of the term with life events. E.g. Becoming a parent. Losing your income could cause great hardship to your children, until the age when they are earning their own living. So 20-30 year Term is recommended.
Yes, you could get 10 year Term and then buy a new policy when the first one expires. But what if you develop a serious illness in the next 10 years, are charged higher premiums, have medical bills piled up, maybe even had to go on disability, and can't afford the new policy? Sounds far fetched, but that is honestly a more probable scenario than your passing away in the next 10 years. Matching the length of your Term policy to your need (based on life events) can save you a lot of money in the long run.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
The name “Term” indicates that the policy is all about a period of time. If those you love or those you owe will only need money in the event of your death during a particular period of time, select the term policy that matches that period of time. For example, if you owe $100,000 but the debt is scheduled to be repaid in ten years, then purchase a 10 year term policy.
President, Lane Independent Agency, Southern California
I suggest the first question should rather be what type of life insurance do you need. It may not just be term. Consider permanent. While more expensive the first two years, with its appreciation and locked in premium for a lifetime, overall it actually ends up being less expensive and can be borrowed against and never repaid and kept tax free and also can pass an inheritance tax free (as can term of course). But if term is the only answer for you, than at lease consider term which will allow you to convert some or all of it to permanent later. Also think about universal term or indexed universal term. They can have some growth and may even lock some of that in. Do not get an extremely long term, because the majority of folks let it lapse, while having paid extra each month just to have that longer period. Always think about converting as least some of it to permanent. Discuss your options with your agent. Thank you. GARY LANE.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
what kind of term life do I need? Well, first and foremost you need the convertible kind of term insurance. Why? Because if you miscalculate and have to continue your coverage a convertible policy allows you to purchase a new policy from the company you purchased the term from without having to prove good health. Believe me, this is the most important part of a term policy as it protects you from being wrong about how long you'll need coverage.
Regional Marketing Director, Capital Choice Financial Group,
The amount of term life insurance to purchase will be determined by funeral expense, debt, income to replace, mortgage, and funding education for the kids. By following this method I call the DIME you will be able to determine just how much protection you will need. Now, I usually recommend no less than 20 years and sometimes 30 and then help my clients to invest and pay off debt to reduce the need for life insurance in the future.
.JPG){kind=avatar}
Yes, you could get 10 year Term and then buy a new policy when the first one expires. But what if you develop a serious illness in the next 10 years, are charged higher premiums, have medical bills piled up, maybe even had to go on disability, and can't afford the new policy? Sounds far fetched, but that is honestly a more probable scenario than your passing away in the next 10 years. Matching the length of your Term policy to your need (based on life events) can save you a lot of money in the long run.
The name “Term” indicates that the policy is all about a period of time. If those you love or those you owe will only need money in the event of your death during a particular period of time, select the term policy that matches that period of time. For example, if you owe $100,000 but the debt is scheduled to be repaid in ten years, then purchase a 10 year term policy.