Colorado CO Life Insurance Help
Reader’s Question
I want to buy term life insurance since this is the cheapest. However, I need assistance in deciding how long would the term be? What is appropriate?
Ian James
Colorado Springs, CO
Thanks for asking, Ian James
Term life insurance indeed requires certain period to enforce the insurance. It’s a fact that you won’t need life insurance coverage althroughout your lifetime especially if you are considering term life insurance. What you need to do is estimate how long will your dependents need you. Will they be leaving their nests soon? Do you have enough assets or properties that you can leave with them when you die in five years? This and more relevant questions need to be answered to come up with the right term for your life insurance. In other words, the time when your dependents will need your life insurance should be the determinant of your term. After all, term life insurance is about your beneficiary and not about you. In the event that you won’t die within the period, you won’t gain anything. However, when you die within the times when your dependents are still relying on your salaries and income, you would need life insurance to back them up.
So if you currently have a 3-years old child, you would need to buy 15 or 20 years term life insurance policy. It will be estimated that at age 18 or 23, he/she would leave and find personal income by their own.
Loading ...