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5 year term life insurance online
Term life insurance periods can are available to address all types of
scenarios.
The range is usually from 5 years up to 30 years in 5 year increments
(i.e. choice of 5, 10, 15, etc).
Let's look at what it typically the lowest available amount of term on
the market.
You can quote the best 5 year term rates side by side here:
When does a 5 year term period make sense?
First, let's look at the purpose of life insurance to properly orient
ourselves for the use of 5 year term.
Usually, term life insurance is used to replace income over a period of
time.
This would be true if you are a new family just starting out or have
young children.
5 year term is probably not the right fit for this situation.
5 year is usually situational specific which means it is to cover some
other event that will last up to 5 years.
Let's look at some example.
Example of use for 5 year term life coverage
Let's say you are 45 years old and your children are just about to leave
high school.
You figure they will be in college for about 5 years (hopefully these
days).
You do not have life insurance or your current amount is insufficient to
cover the ever-increasing cost of college in the case of your passing.
This might be an ideal situation to get a stand-alone or even additional
5 year term life insurance policy to address this specific financial
concern.
With college costs quickly approaching $100K and more for 4 years, this
gives you a sense of the need.
The last thing you want to have as a result of your passing is that your
children are now unable to continue college or to do under an extreme
financial burden.
Most likely, they will only have one chance to do college right and a
quick shot of 5 year term is a good
life insurance policy to make sure it becomes a reality.
5 year term life to cover period of not working
Another personal use of 5 year term is to
purchase the life policy to cover a period when another earner in the
family will stop working for a short duration.
This could be following the birth of a child or if that person is setting
off to start their own business.
Again, this partially assumes that you have other life insurance of a
longer duration anyway but the 5 year term at least gets you out past a
window of a particular change where the financial burden for the family is
shifting more to your shoulders.
Assuming there is no impact on underwriting eligibility, 5 year term may
also address a change temporary shift in employment or location.
Let's say you are taking a contract job that may last 3-5 years in
another country.
Business Uses of 5 Year Life Insurance
There are also business uses for 5 year term life insurance policies.
For example, you may hire a specialized employee on a contract basis
whose ability is critical to the functioning of the company.
If the employment contract is expected to last under 5 years, this might
be a good insurance policy in the form of a
key person insurance plan to cover the finite contract period.
You can renew it, assuming the person meets eligibility requirements and
at a higher rate, for another 5 years when the current contract is complete.
5 Year Term Wrap Up
So basically, 5 year term is good when you either have a personal or
business financial responsibility that will last less than 5 years.
It's a temporary need.
Be careful not to purchase 5 year term for needs that are more long term
in nature under the plan of reducing monthly premium and just re-applying at
the end of the 5 year window.
You may not be able to qualify based on health then and the rate will be
more expensive (since you're 5 years older anyway).
It's best to lock in a term life length that truly matches your needs and
not try to "piece meal" it.
Of course we're happy to help you find the best rate and option for
YOUR health status:
Again, there is absolutely no cost to you for our services. Call
800-710-0455 Today!