So you’re considering a level term life insurance policy? One of the major questions you should ask yourself is: how long of a term plan should you buy? And more importantly, what happens when the term expires?
Life insurance is intended to protect the people you love and the assets you’ve worked to acquire. As you age your financial responsibilities will evolve. Perhaps today you have a growing family. In this case your financial responsibilities will grow along with your family. As your children mature and become independent, those responsibilities will begin to wane. It’s important to keep this in mind as you plan for the future and select a term life insurance policy accordingly.
What is a Level Term Life Insurance Policy?
A level term life insurance policy provides coverage for a predetermined amount of time. If you should pass away or become disabled during that time, your loved ones will receive payment by means of a death benefit. Level term life insurance coverage is particularly attractive to those individuals who want to pay the same monthly or annual premiums as long as they carry their policy.
What Happens Next?
If you outlive your level term life insurance policy you will likely be able to purchase more coverage on a Yearly Renewable Term (YRT). Though this is an option for those in need of continued term life insurance coverage, it comes at a high price. Each year you choose to renew you will face substantial rate increases.
Buying a Longer Term
We always encourage our customers to purchase longer term life insurance policies in order to avoid exorbitant rate hikes. Many of the nation’s leading insurance companies offer 15, 20, 25 and even 30 year term life insurance products. This is the best way to ensure you will have affordable coverage as long as you, and your family, will need it. Not sure just how long you’ll need coverage? The beauty of term life insurance policies is that you can allow them to lapse whenever you choose. Though we don’t often recommend doing so, it’s always best to have the coverage you need for as long as you will possibly need it.
Ready to begin exploring your term life insurance options? Contact us today! With no obligation to buy, our staff of licensed life insurance agents is on hand to help you compare your options.
Interested in learning more about your life insurance options? We encourage you follow our Life Insurance Blog; stay informed! While you’re here, check out these recent related posts:
How long will you need coverage?