Does Size Matter? Tips for Choosing the Right Length (of term life insurance)

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Danika Dickson

Customizing The Length of Your Term Life Insurance Coverage Can Save Thousands

Term life insurance is a type of life insurance that provides lower cost protection for a specified time period, such as 10, 20, or 30 years. You can choose the term that works best for you and your family. Once in place, the premium payments stay the same over this chosen term. There are renewal options if you want to extend your coverage; in many cases, some of the coverage can be changed to permanent options so that it lasts as long as you do! Term life insurance benefits are tax-free and paid to whomever you choose as a beneficiary.

Term life insurance provides affordable, customisable solutions to protect your family and business.

Things to think about when choosing term insurance:

 

  • Do you have a mortgage or children?
  • Are you concerned about your family’s finances if you were to die?
  • What kind of debt are you carrying, and how much is it? 
  • When do you want to retire?
  • How does insurance fit in your monthly budget??

 

Make The Best Choice:

Choosing the length of term life insurance can be complicated. There are common scenarios, however, to help guide you in the right direction:

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SHORT

(up to 10 years)

Choose shorter term insurance if you:

  • Are not sure about what will happen in the future and you need to be able to extend your coverage. (You can then convert it to a permanent policy if you want lifetime coverage.)
  • Are looking for the lowest cost insurance policy.
  • Want to buy insurance while you are young and healthy so when your health changes, you will still be eligible.
  • Took longer to pay off your mortgage than you thought it would. Or your kids are still too young to support themselves. You need insurance so that the money is there to bridge the gap.

MEDIUM

(up to 20 years)

Choose medium term insurance if you:

  • Your current mortgage is partway through being paid off, or you chose a shorter  amortization period.
  • You want to protect your children financially until they finish school or start working full time.

LONG

(30 + years)

Include at least some longer term insurance if you:

 

  • Are looking for longer life insurance coverage for different milestones in your life, including marriage, having children, or buying a house.
  • Have bought a house and would like to buy insurance for the rest of the time that you owe money on the mortgage.
  • Have young kids, so you want to make sure they are taken care of until they are financially stable themselves.
  • Want affordable coverage that will last until you retire, with a monthly premium payment that stays the same while you’re working.

 

Most ‘self serve’ online quotes or applications do not make it easy to mix and match (also known as ‘blending’ or ‘layering’) your insurance coverage. An independent broker can help you determine what are the best term lengths to protect what you love:

The Regular benefits:

  • Financial protection for the duration of your term(s);
  • Saving money on premiums and locking your insurability.

Emotional benefits:

  • Peace of mind

 

 

The Right Policy For Your Family Is Just A Click Away

Learn more about layering term length insurance, without any pressure or awkward sales pitches!

Click Here To Schedule Your Phone Call With An Insurance Professional
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