How Long Should My Term Life Insurance Policy Last?

Disclosure: This is a collaborative post.

When considering life insurance policy quotes, you need to decide how long you want to your term life insurance policy to last

Considering purchasing a life insurance plan for the first time? Excellent! You are already on your way to ensuring your family’s future after you’re gone. 

But, there are a lot of different aspects of life insurance that can get confusing if you haven’t previously done your research. One of the most common major questions regarding term life insurance is — how long should my term life insurance policy last? If you are debating between different time periods, or are just plain lost when it comes to the length of your life insurance policy, then you are in the right place! Need some guidance? We’ve come up with the following points you should consider when looking at life insurance quotes for you.

How Long Should My Term Life Insurance Policy Last?

Find out the different factors that determine the length and cost of your ideal term life insurance policy

If you aren’t sure how long your insurance policy should last, contact a financial advisor for help.

When you choose a term life insurance plan, you have to choose a term for when your insurance will expire. This is different from whole life insurance, which lasts your whole life but is often much more expensive than term life insurance. 

When you are offered a term life insurance quote, there are many different term lengths to choose from. Most commonly, you can opt for 10, 20, or 30 years of term life insurance. There are also options for increments in 15, 25, and 35 years. In general, you won’t see term life insurance policies go past 40 years in duration. Should you outlive your term life insurance policy, your coverage goes away — that’s why we are examining how you can get the best term life insurance quote for yourself and your loved ones. Let’s take a look at some different term lengths and discuss the advantages and disadvantages. 

10-Year Term

10 year insurance policies are often referred to as “short term coverage” plans. Though these are short term, there are still valid reasons for people to search for term life insurance policies that last for 10 years. A good candidate for a 10 year life insurance term either has outstanding debts that will be paid off before the term is up or someone who needs some coverage until they can secure a cheaper plan later on. For example, if you have health issues it will be more difficult to get a long term life insurance quote at a reasonable price. When you choose a 10 year plan, you are giving yourself a bit of time to get your health in order before purchasing a more long term plan. 

20-Year Term

If you’re a new parent and want to plan for your children’s future in the event of your passing, then a 20 year term life insurance plan is the way to go. 20 years is the perfect duration to cover your children until they are out on their own. For stay-at-home parents, a 20 year life insurance will protect your family and the burden of childcare won’t be placed on your partner.

30-Year Term

For most insurance companies, a 30 year term life insurance quote is the longest they will offer. A 30 year term life insurance policy is the most popular among those in good health — especially those who were recently married or just started in the workforce. 

What Should I Consider When Considering Term Life Insurance Policies?

Before you decide on the length of your term life insurance policy, you need examine a few key deciding factors in your own life

If you’re in good health, the sooner you secure term life insurance the lower your monthly premium will be.
Deciding on the best term life insurance policy isn’t easy. You need to think critically about your life, goals, and plans for the future before you can make your final decision. So, before you say yes to a term life insurance quote, take the following points into consideration:

Monthly Premium

If you are on a tight budget, you are going to be looking for a life insurance policy that won’t break the bank. If you feel the term life insurance is out of your price range, it’s best to keep looking.

Your Age

Consider how old you are now versus how old you’ll be when your policy expires. If you will need to purchase another policy after this one ends, you should keep that at the top of your mind. 

The other thing you need to consider regarding age is that insurance premiums increase in price the older you get. If you are currently healthy and considering a term life insurance policy, now is the time to secure a low monthly rate. 

Your Goals

As we mentioned before, you need to establish what you want to get out of your term life insurance policy. You want peace of mind, of course. But, what are the other reasons you want to get life insurance? Is it to cover your children, the remainder of your mortgage, or funeral expenses? You can have multiple goals when it comes to shopping for term life insurance policies. By establishing clear goals, you can get a better idea of which policies will work best for you.

We’ve just covered the basics of choosing a term life insurance policy. Be sure to thoroughly research each life insurance quote before making a final decision. If you are having trouble finding a policy that works for you or are overwhelmed with options, you can always contact a financial advisor for help.


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