When Should I Get a Term Life Insurance Policy?

A term life insurance policy is a type of life insurance used in specific situations. As opposed to a whole life insurance policy, which covers the policyholder as long as they live, a term life insurance policy only lasts for a specific period of time. 

The primary purpose of life insurance is designed to provide for your loved ones if you are no longer around to do so. Life insurance can help family members bear the brunt of financial loss after you are gone, but you may not remain the main source of income. 

For example, say you have young children and you only want life insurance until they are grown and move out. In this case, you may purchase a life insurance policy set to expire only after you believe your children will move out. This way, you will not have to continue paying for whole life insurance beyond when you need it.  

Other examples would be if you want coverage just long enough to pay off certain debts and loans that would otherwise be left to burden your loved ones. This may include credit card debt, a home mortgage, etc. You can purchase term life insurance to last until you’ve paid off these debts so that your loved ones won’t be left to pay it after you’re gone. 

How Long Should I Set My Term Life Insurance Policy? 

Term life insurance policies vary depending on your needs and your insurer. You can purchase a term life insurance policy for 10 years, 20 years, 30 years and more. Some insurers offer terms in between, too, such as 15 years and 25 years. 

Speak with an insurance agent about the type of term life insurance policy you need for your lifestyle and your loved ones. Everyone’s circumstances is different so it is important to find a policy tailored specifically for your needs. The terms can change as can the amount of coverage you can purchase. The higher amount of coverage you have, the more benefits may be paid to your loved ones if they must file a claim on the policy. 

If you are unsure how much life insurance you need, connect with an insurance agent to discuss what expenses you want covered (such as debts, mortgage, funeral costs, etc.) and they can help match you with an affordable term life insurance policy.