5 Year Or 20 Year Term Life Insurance, Which Is The Best Value?
Posted September 29, 2009 – 4:50 am in: term life insuranceWhat’s the GOAL? If you have a 14 year old, and you want to be sure they can eat and wear clothes until they turn 18, and that’s the ONLY goal, then 5 years is enough.
If you think you have reasonable expectation of needing life insurance LONGER than five years, buy the 20 year term.
Match the product to the goal, not the other way around.
4 Comments
It depends on the reason you need the life insurance. Where will you be in 5 years – what could or will your life insurance needs be then. The best bet is to talk to an agent – but go with someone you trust – like your auto insurance agent – some life insurance salespeople are out for themselves.
At the end of 5 years will you say “Dang, I didn’t die. this term policy was not a good buy?”
Go talk to a licensed agent or financial planner to determine the TYPE and AMOUNT of insurance that is best for you and your situation.
Good Luck.
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Unlike the above, it entirely depends on why you are getting the policy. Are you married with children? If so then you do need the insurance. How old will you be in five years AND can you retire in five years financially secure having no worries about the rest of your life? Should you be financially secure in five years- meaning all bills can be paid, you are living the same life style as now and you do not have to worry about funeral expenses, then you should get five year term.
Do you have a child 2-5 years of age and are married? Looks like your family will miss your income for the next fifteen to eighteen years. This being the case 20 year term makes more sense. The length of term should be for as long as possible OR until you are financially secure. I am glad to hear that you are thinking term.
Twenty year is the better value, especially if it is level term. Go with a company that covers you as primary, spouse as a rider on the same policy and for pennies a day add a present child but including future children (still for the same cost). Term is best because your agent gets commission that first year and NEVER again, unlike ALL cash value policies.
Look towards 20, 25, 30, or with Primerica 35 year level term.
The reasons for the insurance are your own and cannot be compared with others, here. But look to pay off debts, replace income- how much and for how long, pay off mortgage and pay childrens education.
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