After deciding on term life insurance as your preferred type of life insurance, you still have to choose the term period of the policy. You can select any number of years between 10 and 30 years in terms of five years. The perfect period for you would depend on your reasons for taking up life insurance.
20-year term life insurance period
The 20 year-length term life insurance is one popular term length chosen by most people that covers you for 20 years.
- It is cheaper than the 30 year-length plan.
- The 20-year term life insurance period provides you with coverage during a period in your life where your financial spending is at its highest.
- It also gives you an option to increase cover during significant events in your life, especially when you face new obligations.
- 20 years can be said to be short.
- You get nothing back if you don’t die before 20 years elapses.
30 years term life insurance period
This is another term period of life insurance which covers you for 30 years beginning from the time of filing for the policy.
- Premiums set at the beginning of policy never change throughout the term.
- Provides you cover for as long as it should take to raise a family.
- 30 years is quite long and does a large part of what whole life insurance is supposed to do for you while saving you more money.
- It is costlier than the 20 year term period.
- If you are alive after 30 years, you don’t get anything back from the insurance company.