Term life insurance provides coverage that can help your loved ones financially in the event of your passing. But with a few different term lengths to choose from, you may be wondering what the duration of your term life policy should be. Let’s dive deeper into questions to help you determine how many years you should get term life insurance for so you can find a term life insurance quote that works for you and your family.
How long will your dependents need to rely on your income?
One of the key features of term life insurance is that it lasts over a predetermined amount of time. Typically, a term life insurance policy will last between 10 and 30 years. If you pass away during that time period, your dependents will receive a guaranteed death benefit that they can use to cover any expenses, from funeral costs to monthly bills.
When looking at term life policies, it’s wise to ask yourself how long you expect your dependents will need to replace your financial income. This answer differs with each family and household. For instance, a policyholder with young children may choose 20-year term life insurance, so that they’ll have coverage until their kids are financially independent. If you can answer this question first, you’ll have a much better idea of what kind of term life policy you should purchase.
What’s your current age?
Age is another important consideration when deciding how long you want coverage for. Suppose you’re young and have 30 years left until you retire, for example. In that case, you may consider getting a 30-year term life policy so any beneficiaries that rely on your income can have added protection. Plus, getting a policy while you’re young can help you lock in lower premium payments and save money on life insurance as you get older.
A senior that wants affordable coverage for just a few years, on the other hand, may consider getting a 10-year term life insurance policy. This can allow them to stay within their budget while still providing their family with extra financial security.
Do you have a mortgage or student loans?
If you have any outstanding long-term debts, like mortgages, student loans, or car payments, you should consider these when choosing your term life insurance policy length. These costs may take up a big part of the monthly expenses your loved ones will have to cover once you pass away. So, homeowners with a 30-year mortgage, for instance, should consider getting a 30-year term length so that their beneficiaries can have a financial cushion to pay off this debt.
Do you have pre-existing health conditions?
Many life insurance customers have a family history of illness they’re worried could affect them more as they grow older. And many may already have conditions they fear could become more serious or life-threatening over time. You may be able to qualify for term coverage and lock in future protection for your family if your pre-existing condition is under control. This way, you won’t be in a situation where you want life insurance but can’t find the proper coverage.
The bottom line
The term life insurance policy length that’s right for you can depend on your family situation, age, income, and any health conditions. When deciding how long to get a term life policy for, you should research policies properly and examine your own insurance needs. This way, you’ll be able to find life insurance that aligns perfectly with your unique circumstances and life goals.