While term life insurance is considered temporary, the term periods can extend from 1 to 20, 25 or 30 years, making term life policies a long term commitment. Although long term life insurance quotes are higher than those for shorter terms, long term rates remain fixed over the life of the insurance policy. This makes long term life insurance a better investment in the long-run because short term policies must be renewed or replaced more frequently and the premiums on each new renewal will be higher than those of the original policy.
Because life insurance premiums are cheaper when you are young and healthy versus older with medical issues, long term life insurance is best purchased at your earliest convenience, when rates and coverage are cheap and affordable.
Buying a long term life policy with a 30-year term may mean you never have to purchase another policy again, and your premiums will stay low. Learn more about term life insurance to determine if it is the best protection for your needs.
What Is Term Life Insurance?
Term life insurance is temporary or pure insurance that remains in effect for the time period specified in the policy. Your premiums and the amount of the death benefit are fixed and do not change over time. Term life insurance is available in periods from 1 year to 5, 10, 15, 20, 25 or over 30 years, and policies of more than 20 years are considered long term life insurance.
Although the term life policy will eventually expire, if the insured person does not die, long term life insurance covers an individual’s needs for a large part of his or her life. If your coverage expires as a senior, you will likely have significantly lower insurance needs then anyway.
If the policyholder does prematurely die while the term life insurance policy is in good standing, your insurance company will pay out a death benefit, also known as the face value of the contract. Death benefits can range from $50,000 to more than one million dollars, and how much life insurance you need plays a huge role in the cost of your protection.
Pros and Cons
The cheap fixed life insurance rates are the primary advantage of long term policies. If term life is purchased when the insured person is young, the premium rates are lower and remain the same as the person ages. While a 15 year policy offers cheaper term life insurance rates right now, when the policy has to be renewed 15 years later, the additional risk associated with your older age will place you in a higher risk group with considerably higher premiums for the same death benefit. This means that buying 30-year term life insurance at a young and healthy age will ensure lower rates for a majority of your life, for example, 30 to 60 years old.
On the other hand, an individual’s needs for life insurance changes over time. Marriage, the birth of a child, purchase of a home, medical bills, business or personal loans, and other financial burdens can increase the need for life insurance. Term life insurance has a fixed death benefit which may not be the right amount to meet future protection needs.
It may be necessary for you to buy additional coverage to supplement an existing term policy. However, those families and adults whose needs have decreased may find they are paying for more insurance than is necessary, which can be especially difficult if you’ve retired early and are on a fixed income.
Term Life Insurance Quotes Online
The best way to find out how affordable long term life insurance can be is to compare instant quotes from the best companies. For this reason, we help consumers compare rates, plans, and coverage options from different carriers, allowing you to check out premiums for 10 year vs. 30 year life insurance policies and determine the best and cheapest coverage for your needs. Life insurance quotes are instant and free when you complete a short form with rating information to get a side by side comparison.
Buy Term Life Insurance
Long term life insurance is especially affordable and the best type of term life insurance for young families since it can provide families with protection from the time dependent children are born until they graduate from college.
Without proper financial planning and life insurance, the premature death of a parent can leave spouses and children without the financial support they need. Life insurance offers that income-replacement protection, guaranteeing your family’s financial stability and well-being.