15 Year Term Life Insurance
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.
by Dennis Jarvis
