How Long Do You Need Life Insurance Coverage?
Covering final expenses is a permanent insurance need. If final expenses are all that you need, a small whole life policy will get the job done.
Raising a family, on the other, creates a large temporary need. You may need a large amount of coverage for 20 or 25 years, and after that, final expenses may be all that needs to be covered.
If the need for life insurance is temporary, term life is usually the better option. You can take a policy that has a term running from five to 30 years, which can be used to cover the higher need. After the initial term expires, you’ll have the option to either:
- Continue coverage at a higher premium,
- Lower the death benefit and therefore the premium, or
- Cancel the policy completely
In our next blogpost, we will help you decide whether your life insurance needs are temporary or permanent.