If you’re looking into getting life insurance, that’s an important life step to take. Getting life insurance helps protect those who financially depend on you in the unfortunate event of your death. When it comes to which type of life insurance to buy, you have options.
Life insurance generally is offered in two broad categories: whole life and term life. Whole life insurance provides coverage for your entire life (as long as premiums are paid on time) and typically costs more than term life, but provides a cash value that builds over time. Term life insurance provides coverage for a limited period of time and typically costs less than whole life. Which one is right for you depends on your circumstances and needs, though some people choose to buy both kinds in order to meet the changing needs they anticipate having throughout their lives.
Since term life insurance provides coverage for a limited amount of time, you might be wondering how long of a time that is, and if you could get term life insurance that lasts as long as 30 years.
The answer is generally yes. With term life insurance, according to Insure.com, “an insurance company promises that it will pay your beneficiaries a set amount if you die during the policy’s term. In exchange, you pay a monthly premium to the company for the duration of that term.”1 And, as NerdWallet notes, “you have dozens of companies, term lengths and coverage amounts to choose from.”2 NerdWallet also notes the average rates for a 30-year term life insurance policy are higher than a 20-year policy, for example, and as your age at the time of purchase goes up and the policy amount goes up, so does the premium rate.
According to CreditDonkey, “30-year term life insurance is a popular choice,” and you should think about what could happen during the next 30 years of your life if you’re considering buying a 30-year policy.3 Life events like getting married, having children, buying a house, and approaching retirement all might make getting a 30-year term life insurance policy a good option to protect your loved ones.
So if you’re considering buying a 30-year term life insurance policy, ask yourself what you anticipate in your future. Do you think you’ll have a family? A mortgage? Children who would go to college? If you were to die, a 30-year policy could help financially protect those who depend on you, and could be the right choice for a life insurance policy. After all, it’s about being prepared.
If you have any questions about buying life insurance, what type, and how much to buy, contact an independent broker or a licensed insurance agent.
Insure.com, Term Life Insurance: How it Works , 2019
NerdWallet, Average Life Insurance Rates for, 2019
CreditDonkey, 30 Year Term Life Insurance: What You Need to Know, 2019
Categories: Insurance, Life Insurance, Term Life Insurance