One
of the first big considerations you will
hit when
comparing term life insurance
plans and rates is the length of
coverage that is needed (and
affordable). The range can be from
5 to 30 years for most carriers but this
choice has pretty big implications later
on during the policy. 15 year life
is traditionally a popular choice for a
few reasons and uses so let's take a
closer look.
With
a range of 5 to 30 years for most term
life policies, 15 fall right in the
"goldilocks" range...not too short and
not too long (loosely translated as
expensive). 5 and 10 year policies
are so short that they tend to work well
for specific issues or financial
responsibilities you are insuring
against. For example, you have 10
years left on your mortgage or you want
to insure the principles in a new
business venture during the first 5 year
start up phase. 15 years is a
little different. 15 year term
life is more of what you think of when
shopping for term life insurance in the
first place. It's to protect your
family from the big "what if" for all
the different financial reasons that
life insurance needs to address.
15
year term length is long enough to
really cover a good range of a person's
earning life depending on when they
purchase it. For example, most
people start to think of getting life
insurance when they start a family or
enter into a mortgage. Actually,
most people put off life insurance
(rolling the dice) a few years after and
then finally decide they can't take the
risk any longer. This most likely
is the result of seeing friends,
coworkers or loved ones who had the
unimaginable happen with or
without life
insurance. That can be a big
wake-up call and by chance, you may come
across such a situation in your late
30's early 40's. 15 year term life
then takes your family out past college
years and protects your family into
early adulthood.
It
also address a big part of your mortgage
requirements for a typical house.
If you have a 30 year mortgage and
you're 10 to 15 years into it, 15 year
term life carries you out through this
financially responsibility. Even
if you have 25 years left on your
mortgage, 15 years of term life will
afford you a length of time to adjust,
re-evaluate, and move forward
financially without the immediate
pressure of a monthly mortgage that is
no longer afforded without the primary
earner in the family.
Affordability and the ability to pay the
actual monthly
term life insurance
premium is a critical concern.
Insurance agents are always quick to
recommend lots of insurance but if you
can't afford it, what's the point.
With many kinds of insurance, covering
100% of the risk rarely makes sense as
you're paying a dollar to get a dollar.
That's why health insurance doesn't
cover 100% (unless maybe you work for
the Senate and Congress). It would
be so expensive that it wouldn't make
sense. Assuming a certain amount
of term life benefit, 20 or 30 year term
might be too expensive. Again, you
need to afford the coverage. 15
year term life allows you to cover a
great deal of the financial risk while
still being able to pay the premium over
the life of the policy. When you
run your
term life instant quote, adjust
the desired amount of term life benefit
while comparing 15, 20, and 30 year
term. Take a look at the premium
difference between especially the 15 and
20 year term life period. Of
course, 20 might be better but only if
it makes sense especially during the
occasion financial tough times that a
family or person may face.
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