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Life Insurance 

How Long Should My Life Insurance Last?

People buy life insurance for different reasons.  Their reasons affect how much coverage they buy and the term length they choose.  Let’s talk about how to decide how long your term life insurance coverage should last.

There are five chief factors to consider when deciding what term length you need:

  • Children
  • Partner
  • Debts
  • Aging relatives
  • Budget
  • Do you have children?  If so, how old are they?

    A good rule of thumb is to purchase a policy with a term length that lasts until your children are adults or through college (if you plan on financially contributing to their education.)  For example, if your youngest child is already 10 years old, a 15-year term policy may be enough.  However, if you haven’t had children yet but plan to, a 30-year term policy would be the better choice to ensure coverage lasts from infancy to adulthood.

    Does your partner rely on your income?

    If you and your partner don’t plan on having children and are financially independent from each other, then you may not even need life insurance coverage.  However, if you two share financial obligations, such as a mortgage, then consider a term length that lasts until these combined debts are paid off.

    What debt do you have?

    Think of the debt you have.  This may include credit cards, student loans, and mortgage payments.  If these debts have the potential to fall solely on a loved one’s shoulders should you die prematurely, protect them by choosing a term length that lasts until your final debt is projected to be paid off.  For most people this is your mortgage loan.  For example, if you have a 30-year mortgage, get a 30-year term policy.

    Are you a caregiver for any relatives?

    Baby Boomers are retiring and living longer, and many are running out of savings.  Seniors that need full-time care or can’t afford to live alone are moving in with their adult children.  According to the website

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