How long is a term in term life insurance?
Definitions and Vocabulary
Term life insurance comparison can be confusing, and one of the most mysterious aspects of it is what exactly a term is. The word term can mean many different things, from a length of time, to a condition in a contract. So what is a term plan in life insurance? This ambiguity can make the process of shopping for term life insurance intimidating, so we’ve put together some facts to help you better understand the terms in term life insurance.
What is a Term in Term Life Insurance?
A term in term life insurance refers to the length of time that your policy will cover. Typical terms run from 5 years to 30 years. The reason for this is that term life insurance is a product that was designed to give you extra protection during the years that you work and your family is dependent on your income. Thus when the term ends and your family has grown up and presumably has jobs of their own, you no longer need this extra protection. As a result term life insurance policies are products that are offered with a specific purpose and function in mind.
The term that you get for term life insurance should be based on how long you feel you’ll need extra protection for your family in the event that tragic events take place. If your children are young then you will want a longer term on your term life insurance policy. If they are older, in their teenage years or even in college, then a shorter term is the better option, as your rates will be lower and you will still get the coverage you are looking for, even for the most basic term life insurance
As you can see, once you understand term life insurance, the process of shopping for it isn’t nearly as overwhelming. Make an honest assessment of your needs and you’ll be able to find the right term life insurance policy for you in no time!
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