Determining Life Insurance Term Length
What life insurance term length is Right for Me?
If you are looking to buy life insurance, and have decided to get term life insurance – life insurance that covers you for a set time frame or term – you may wonder what length of term you need to buy coverage for.
There are different answers for different people
There is no set answer to this question about what term length is right for people. It all depends upon your individual situation. Generally speaking, there are life insurance policies that can be as short as one year, or as long as 25 to 30 years or even longer. Here is a little of how they could work.
A one-year life insurance policy is generally something people buy when they are in transition. For example, an unemployed person who wanted to get life insurance coverage in between jobs, and counted on the employers to cover them, might want to get a one-year life insurance policy. Or somebody who was making health changes to enable them to get better life insurance rates in the long run might get that sort of policy.
Policies between one year and 10 years for life insurance could be for those who are headed towards retirement, or are going to save enough money to be effectively self-insured.
Life insurance policies between 10 and 20 years could potentially be ideal for a growing family, in that in could give them life insurance coverage as the children grow, head off to college, and eventually form lives on their own.
Longer-length policies – those over 20 years, could be an ideal way for a young person to lock in the cheapest term life insurance policy at a young age. Generally speaking, the younger a person gets a life insurance policy, the more cost-effective the policy can be.
If you would like to learn more about life insurance coverage, go to this term life insurance policy quote form to get more information.