There are several different reasons for purchasing term life insurance. These reasons tend to suggest a period of time (term period) that would be most appropriate for you. To help with this, we have included a few examples where different time periods might apply. Please don’t hesitate to ask our licensed online specialist if you need any further help.
Let’s say that you are a business owner, and you have a key employee that you wish to cover with life insurance. If you don’t expect the employee to stay in the same position for more than 10 years, a 10-year term policy may be ideal.
This is a very common choice among people seeking longer-term coverage because of the cost-effective nature of the premiums. For example, over 20-years the total premium on a 20-year policy generally costs much less than purchasing a 10-year policy and then keeping the same 10-year policy for an additional 10 years. If you have young children at home, a 20-year term policy could be the perfect choice for seeing them through their college years.
Premiums are set and guaranteed when your policy is issued. Premiums will increase at each renewal as shown in the policy and are guaranteed never to increase during a renewal term.
A policyholder may cancel coverage at any time during the first 10 days of the policy and receive a full refund of any premiums paid.
When trying to decide which term period is right for you it is important to know your options. You can always apply for a new term insurance policy after your term is through. At the end of your policy, the insurance company will contact you to tell you that the policy is about to expire. At this point you have three options.