5-Year Term Life Insurance Plans
Like any term life insurance policy, a 5-year Term Life policy provides the designated beneficiaries with life insurance coverage in the event of the policyholder’s passing – as long as the insured keeps paying his or her premiums, and dies during the 5-year period covered by the plan.
Why Buy A 5-Year Policy?
A 5-year policy may be right for you if you’re on a tight budget, or if you’re positive that your coverage needs won’t extend beyond a 5-year period. Some 5-year policies have a conversion option, which allows the policyholder to convert his or her Term Life policy to a Whole Life Insurance policy prior to the end of the 5-year period.
Many people require more than 5 years of life insurance coverage protection. Most policyholders are looking to protect the financial future of a spouse, children who haven’t yet entered college, or aging parents. Frequently, these beneficiaries would require that coverage for at least 10 years – and often more. For example, an insured with a newborn child, would benefit from a term of at least 20 years so that child has the benefit of the policy until they are an adult.
- 30-Year Term Life Insurance Plans
Like any term life insurance policy, a 30-year Term Life policy provides the designated beneficiaries with life insurance coverage in the event of the policyholder’s passing – as long as the insured keeps paying his or her premiums, and dies during the 30-year period covered by the plan.
Longer term plans, 20 years and up, are most often purchased by insureds who:
- Are recently married
- Have a baby on the way
- Have very young children
Should something happen to you, a 30-year term will provide replacement income long enough to get your children through college – and maybe even grad school – in addition to supporting your spouse and any other dependents in the meantime. Many children are dependent on their parents even after they turn 21. Often coverage that is in force until the children are over the age of 30 is the best choice.