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What term period is right for me?

There are several different reasons for purchasing term life insurance. These reasons tend to suggest a period of time (term period) that would be most appropriate for you. To help with this, we have included a few examples where different time periods might apply. Please don't hesitate to ask our licensed online specialist if you need any further help.

5 Year- Generally speaking, the more specific the need for insurance is, the shorter the term period tends to be. For example, if you have a child going to college for four years and no need for the insurance thereafter, a five-year term may be perfect for you. Another example of the need for a five-year term period would be to protect a short-term loan.

10 Year- Let's say that you are a business owner, and you have a key employee that you wish to cover with life insurance. If you don't expect the employee to stay in the same position for more than 10 years, a 10-year term policy may be ideal.

15 Year- Many families choose 15-year term policies to replace one or both of the parents' income(s) in the event of death. This allows the surviving family members to use the death benefit as a replacement source of income. This is especially useful where the children will be self-supporting before the 15-year term has expired, or the home carries only a 15-year mortgage.

20 Year- This is a very common choice among people seeking longer-term coverage because of the cost-effective nature of the premiums. For example, over 20-years the total premium on a 20-year policy generally costs much less than purchasing a 10-year policy and then keeping the same 10-year policy for an additional 10 years. If you have young children at home, a 20-year term policy could be the perfect choice for seeing them through their college years.

30 Year- Mortgage protection is good reason for a 30-year term policy. If you have a 30-year mortgage, you can take out a life insurance policy that will cover the entire period. This will remove any stress you might otherwise feel about leaving your family a financial burden instead of a home that is free and clear. One thing you might want to consider when buying a 30-year term policy is that the rates are higher due to recent legislation. Please review the following sections for options that may further reduce your premium over even longer periods of time.